How to Register a Business with CAC in Nigeria as a Non-Citizen

How to Register a Business in Nigeria as a Non-Citizen

Have you ever dreamed of starting a business in Nigeria but felt lost in the paperwork and regulations?

Let's use Mr. Nkem for this post.

Meet Nkem. Nkem is an ambitious entrepreneur from Canada who saw massive potential in Nigeria’s booming fintech industry. He had the funds, the vision, and the drive. But there was one problem…

He had no idea how to register a business as a foreigner in Nigeria.

Like Nkem, thousands of non-citizens want to invest in Nigeria but get stuck navigating legal processes.

According to the Nigerian Investment Promotion Commission (NIPC), foreign direct investment (FDI) into Nigeria was valued at over $2.2 billion in 2023 alone.

But despite the opportunities, many foreign entrepreneurs abandon their plans due to bureaucracy and misinformation.

So, how do you actually register a business in Nigeria as a non-citizen?

Buckle up!

This guide will break everything down in simple, practical steps.

What You Will Learn

• Step-by-step process of business registration for non-citizens

• Legal requirements and essential documents you’ll need

• Costs involved in registering a company in Nigeria as a foreigner

• Common mistakes foreign entrepreneurs make and how to avoid them

• How to stay compliant with Nigerian business laws

Table of Contents

1. Who Can Register a Business in Nigeria?

2. Step-by-Step Process to Register a Business as a Foreigner

3. Documents Required for Business Registration in Nigeria

4. Cost of Registering a Business in Nigeria as a Foreigner

5. Business Permit and Residency Requirements

6. Disadvantages of Registering a Business in Nigeria

7. Frequently Asked Questions

8. Conclusion

   
   

Who Can Register a Business in Nigeria?

Let’s get straight to it…

Foreigners can register a business in Nigeria, but there are rules.

The Corporate Affairs Commission (CAC) allows non-citizens to own and operate businesses, but they must meet specific requirements. Some industries—like oil and gas—have stricter regulations for foreign ownership. Also, you cannot operate a sole proprietorship as a foreigner; you must register a company.

Step-by-Step Process to Register a Business as a Foreigner

Here’s the roadmap to registering your business in Nigeria:

1. Choose Your Business Structure - Foreigners must register as either a Limited Liability Company (LLC) or a Public Limited Company (PLC).

2. Get a Business Name Approved by CAC - Visit the CAC website (www.cac.gov.ng) to check if your preferred business name is available.

3. Prepare the Required Documents - (More on this in the next section.)

4. Register with the CAC - Submit your documents online and pay the necessary fees.

5. Obtain a Business Permit - Issued by the Ministry of Interior, this allows foreigners to operate legally in Nigeria.

6. Register with Tax Authorities - Get your Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS).

7. Open a Corporate Bank AccountNigerian banks require proof of registration before opening business accounts for foreigners.

   
   

Documents Required for Business Registration in Nigeria

• CAC Registration Forms (completed online)

• Copies of Passports (for foreign directors)

• Memorandum and Articles of Association

• Business Permit (from the Ministry of Interior)

• Resident Permit (CERPAC) (if applicable)

• Tax Identification Number (TIN)

Cost of Registering a Business in Nigeria as a Foreigner

The total cost depends on your business size and structure. Here’s a rough breakdown:

• CAC Registration Fee: ₦15,000 - ₦50,000 (for small businesses)

• Business Permit: ₦150,000 - ₦250,000

• Legal Fees: ₦100,000 - ₦500,000 (if using a lawyer)

• CERPAC (Residency Permit): ₦210,000 per year

Business Permit and Residency Requirements

Foreigners need a Business Permit and a Combined Expatriate Residence Permit and Aliens Card (CERPAC) to live and work in Nigeria legally. The CERPAC card costs ₦210,000 annually.

Disadvantages of Registering a Business in Nigeria

• Bureaucracy and Slow Processes: Registration can take 2-4 weeks, depending on document verification.

• Unstable Policies: Government policies can change overnight, affecting business operations.

• Foreign Exchange Issues: Sending profits out of Nigeria can be complicated due to forex regulations.

Frequently Asked Questions

How much does it cost to register a company in Nigeria as a foreigner?

It depends on the business type, but expect to pay between ₦250,000 - ₦800,000 in total fees.

Can I start a business without registering it in Nigeria?

No, all businesses must be registered with CAC. Operating without registration is illegal.

How long does it take to register a business in Nigeria?

On average, 2-4 weeks if all documents are in order.

Can foreigners own banks in Nigeria?

Yes, but they must meet strict Central Bank of Nigeria (CBN) requirements and licensing fees.

Conclusion

Starting a business in Nigeria as a foreigner is possible, but it requires proper planning. From CAC registration to business permits and residency requirements, understanding the process can save you time, money, and frustration.

If you’re serious about launching a business in Nigeria, IBIFoundry can help you navigate the legal maze and get registered the right way. Let’s make your business dreams a reality.

Got any questions? Drop them in the comments!

Simon Taki Zaku

Founder, CEO, IbiFoundry Limited

For the IbiFoundry.com.ng E-magazine.