How To Register A Company With The NIPC: Step-By-Step Guide For Nigerian Companies With Foreign Participation

Kabbiz Legal & Advisory

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Kabbiz Legal & Advisory
The Nigerian Investment Promotion Commission ["NIPC"] is a regulatory agency in Nigeria which was established by the Nigerian Investment Promotion Commission Act to encourage...
Nigeria Corporate/Commercial Law
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Introduction: Overview of the NIPC [Nigerian Investment Promotion Commission]

The Nigerian Investment Promotion Commission ["NIPC"] is a regulatory agency in Nigeria which was established by the Nigerian Investment Promotion Commission Act to encourage and promote investment in the Nigerian economy and for all matters connected to this objective. The NIPC co-ordinates and monitors all investment promotion activities, and also promotes investments in and outside Nigeria.

In Nigeria, the NIPC Act requires companies/enterprises with foreign participation to get incorporated with the Corporate Affairs Commission, then register with the NIPC before they commence business operations in Nigeria.

Benefits of Registering a company with the NIPC

There are numerous benefits that accrue to companies with foreign participation in Nigeria which register with the NIPC. These include:

  1. Incentives for special investment. Where the Nigerian Investment Promotion Commission is promoting strategic or major investments in specific areas, the companies whose business objectives align with those specific strategic areas will benefit from the NIPC's incentives for their participation in those areas.
  2. Guarantees of their investment, capital transfer, dividends and profits. Enterprises registered with the Nigerian Investment Promotion Commission are guaranteed unconditional repatriation of their capital, profits, dividends, loans, et cetera, out of Nigeria.
  3. Guarantee against expropriation. The Government of the Federal Republic of Nigeria will not nationalize or expropriate the foreign Enterprises that are registered with the NIPC, neither will any person who owns any part of the Enterprise's capital be compelled by law to surrender their interest in their capital to any other person.
  4. No acquisition of an Enterprise by the Government unless same is in the national interest, or for a public purpose and with payment of fair compensation and right of access to Courts to determine their interests.

Preparation for registration with the NIPC

As aforementioned, Nigerian companies with foreign participation are required to register with the NIPC before they commence business operations in Nigeria. Before commencing registration of your Enterprise with the NIPC, the Enterprise you wish to register with the Nigerian Investment Promotion Commission must have already been incorporated at the Corporate Affairs Commission and you obtained all the necessary documents which you are required to submit together with the necessary forms for your NIPC registration.

Documents needed for application to the Nigerian Investment Promotion Commission

To register your enterprise with the Nigerian Investment Promotion Commission, the following documents are required:

  1. Certificate of Incorporation of the Entity with the Corporate Affairs Commission.
  2. Duly completed NIPC Form 1. You can visit the NIPC website and download same.
  3. CAC Form 1.1 [now known as the "E-Status Report"] or CAC Forms CO2 and CO7 for old companies.
  4. Memorandum and Articles of Association of the Company
  5. Power of Attorney/Letter of Authority (where applicable)
  6. Approved Remita payment receipt of the NIPC application fee (which is non-refundable)
  7. NIPC payment receipt

Registration Process

  1. Fill the NIPC Form 1 carefully, providing all necessary details such as the business information (name of company, address, date of application, phone number, emails, type of business, business activity/purpose, country of origin of investment, proposed date of commencement, proposed investment value, proposed number of employees, equity structure in the company, paid-up capital in Naira), the owners of the company (their names and phone numbers), details of contact person, and declaration.
  2. Assemble all required documents.
  3. Make payment of non-refundable NIPC registration fee to Remita.
  4. Assemble the filled form, documents and payment receipt and deliver them to the One Stop Investment Center at the NIPC; alternatively you can scan copies of all these documents and send them via email to osicinfodesk@nipc.gov.ng
  5. Application will be processed.
  6. After the application is processed, the NIPC Business Registration Certificate will be issued to the applicant.

Processing and approval of Application

By law, the NIPC is required to process and approve an application within fourteen days from the date of submission of the application, but generally the Commission processes and approves them within a faster timeline.

Conclusion

Registration with the NIPC is important for international Enterprises who seek expansion into Nigeria and incorporate their entities in Nigeria with the Corporate Affairs Commission. This helps them to access incentives, become eligible for guarantees provided for under the Nigerian Investment Promotion Commission Act, and unlock other potentials in their operations in Nigeria's economy. However, Enterprises seeking to register their entities with the NIPC must ensure that they comply with the registration requirements provided for under the Nigerian Investment Promotion Commission Act and other guidelines provided by the Commission, pay the required fees so as not to cause a delay with their application.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

How To Register A Company With The NIPC: Step-By-Step Guide For Nigerian Companies With Foreign Participation

Nigeria Corporate/Commercial Law

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Kabbiz Legal & Advisory
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