For a business entity to commence exporting in Nigeria, certain requisite licenses are needed, which are provided by a recognized regulatory authority, the Nigerian Export Promotion Council. They are saddled with registering an entity interested in exportation activities. Below are the criteria to be satisfied before starting exportation activities in Nigeria.
Business Registration:
Any business entity intending to commence business in Nigeria must ensure that such a company is registered with the Corporate Affairs Commission (CAC) in Nigeria. Wherein such entity, upon registration, will be issued a Certificate of Incorporation signed by the Registrar-General of the Commission1.
Obtain a Tax Identification Number:
Registration with the Federal Inland Revenue Service (FIRS) and acquiring a Tax Identification Number is equally necessary for obtaining a license to commence exportation activities in Nigeria upon company registration. It is compulsory for business entities to regularly pay tax to the government through the appropriate means, which is the Federal Inland Revenue Service2
Registration with the Nigerian Export Promotion Council:
As earlier stated, that is important for any business entity as far as Nigeria is concerned that wishes to commence the business of exporting. Upon registering the business name and obtaining his certificate, there is a need to register with the Nigerian Export Promotion Council (NEPC)3 While registering the company, the company will attach and submit certain documents such as the Corporate Affairs Commission certificate, Tax Identification Number (TIN), and passport photographs.
It is important to state that there are different document requirements for NEPC registration depending on the nature of the entity intending to register with the commission, such as Companies, Government, and Non-Governmental Organizations.
During registration, the commission may request an inspection before approving the registration. This is needed to advise, if necessary, for other documentation from certain relevant authorities not supplied at the commencement of the registration, such as NAFDAC for food and drug-related products, the Nigerian Agricultural Quarantine Service for agricultural products, or the Department of Petroleum Resources (DPR).
Upon completion of the registration with the Commission, when required payment has been made, such entity will be issued with a license valid for a certain duration as may be directed by the Commission. NEPC-issued certificates are valid for an initial two years (24 months), after which they become renewable yearly4.
Benefits upon registration with the Nigerian Export Promotion Council:
Upon completion of the registration and license, certain benefits are enjoyed by the entity that possesses the license, such as:
- Exports Incentives
- Export capacity-building programs (Training, seminars, Workshops, etc.
- Networking exporters for collaboration and exchange of ideas
- Trading linkages (Business-To-Business (B2B) and Business-To-Consumer (B2C)
Footnotes
1. Section 18 Companies and Allied Matters Act,2020.
2. Section 10 Companies Income Tax Act
3. Section 8 Nigerian Export Promotion Council Act, Cap N108, LFN 2004
4. Section 2, 4(1e) Nigeria Export Promotion Council Act
https://www.linkedin.com/company/gresyndale-legal/
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.