Generally, any foreign-owned company, whether operating as an individual entity, a branch, or a subsidiary in Nigeria, must get business permits and other required licenses for a smooth and efficient business operation.
Furthermore, any foreigner who wants to work in Nigeria as an employee must also secure an expatriate quota through their company in addition to a business permit. It is important to understand that the procedure for applying for a business permit and expatriate quota in Nigeria does not aim to stifle investment but rather to control the influx and employment of foreign workers in various economic sectors where local knowledge may be easily integrated.
The Federal Ministry of Interior is the government agency that administers and enforces the Nigeria Immigration Act, 2015, and the Immigration Regulations 2017 as it relates to establishing foreign or joint venture companies and employing expatriates in Nigeria. Thus, in line with Part V, Section 36 (1) of the Nigerian Immigration Act, 2015, and Part III, Subsection 12 (1 & 2) of Immigration Regulations, the Federal Ministry of Interiors issues both the Business Permit and Expatriate Quota.
Business Permit
A business permit is a government-issued permit that allows foreigners to conduct business operations in Nigeria. The permit is given to only wholly foreign-owned or joint venture companies with foreign participation, with a minimum paid-up capital of N100,000,000 (One Hundred Million Naira). Obtaining a business permit is a precondition for getting an expatriate quota in Nigeria.
A business permit is different from a business license. A business license allows its holder to operate a particular type of business, while a business permit allows its holder, who is a foreigner, to operate any business venture in Nigeria. Generally, you can process a business permit along with an expatriate quota, and the required documents are almost the same.
Documents Required for Business Permit Application
1. Corporate Affairs Commission (CAC) Registration Documents.
2. Certificate of incorporation.
3. Completion of Relevant Immigration Forms.
4. Letter to the Minister of Interior on the company’s letterhead.
5. Current Tax Clearance Certificate (TCC) – For a new company, evidence of tax registration suffices and must be submitted during the application process. It is mandatory to present the original certificate for sighting.
6. Lease Agreement, C of O, or Rent Receipt. The original agreement must be presented for sighting.
7. Feasibility Report and Project Implementation Programme (Business Plan): This must be certified or registered with Corporate Affairs Commission (CAC).
8. Company profile.
9. Joint Venture Agreement (Where applicable).
10. Applicable Fees.
11. Certificate of Capital Importation (where applicable) along with a cover letter from the bank or with a scannable QR Code.
12. Evidence of importation of equipment/machinery (with details of the value) such as Form M, Proforma invoice, shipping documents and, Clean Certificate of Inspection, Bill of Lading (where applicable).
13. Evidence of work at hand, its duration, and value attached to the contract(s) if the company is engaged in building, civil engineering, construction, and other sectors.
14. Data page of International Passport of Directors/National Identity Card (for Nigerians).
15. Valid telephone numbers and e-mail addresses of authorized representatives.
16. Bank reference letter and a statement showing tangible inflow supporting a feasibility study.
Expatriate Quota
The expatriate quota is a document given to companies to employ foreign or expatriate personnel with inadequately available or unavailable skills in Nigeria. According to the Revised Handbook on Expatriate Quota Administration for 2022, the expatriate quota now has a life span of three years, renewable biennially for two consecutive times, which means the total lifespan of an expatriate quota is seven years. However, for oil companies, the total lifespan is four years with an initial period of 2 years and renewable once.
Application Documents
1. Certificate of Incorporation.
2. Memorandum and Article of Association.
3.Feasibility Report and Project Implementation Programme (Business Plan): This must be certified or registered with Corporate Affairs Commission (CAC).
4. Corporate Affairs Commission’s CAC Form C02 & C07 OR CAC 2.2, CAC 2.3 & CAC 2.5 OR CAC 1.1.
5. Upload CAC Memorandum for Guidance Of Applicants (FOR NGOs, Religion Bodies, Educational Bodies, etc.).
6. Joint Venture Agreement for Partnership Venture between Nigerian and Foreigners (original to be presented for sighting).
7. Company’s Current Tax Clearance Certificate – For a new company, evidence of tax registration suffices and must be submitted during the application process. It is mandatory to present the original certificate for sighting.
8. Lease Agreement for C of O for Operating Premises (original to be presented for sighting).
9. Detailed training program for Nigerians with proposed salaries.
10. Evidence of imported machinery (Form M, Proforma Invoice, Shipping documents, and Clean Certificate of Inspection issued by Govt. Appointed Pre-shipment Inspection Agents) (Where applicable).
11. License / Permit / Certificate from relevant Government Agencies / Department / Ministries for the Operation or Execution of the Project if Company is Engaged in oil services, health care services, fishing, mining, constructions (Work Registration Board), etc. (original to be presented for sighting).
12. Proposed Annual Salaries to be paid to the Expatriates to be recruited indicating Designation, Names, Jobs Description, and Qualifications (CV and copies of credentials of Expatriates to be attached).
13. Evidence of work at hand, its duration, and value attached to the contract(s) if the Company is engaged in building, Civil Engineering, Construction, etc. (original to be presented for sighting).
14. Applicable fees.
Timeline For Expatriate Quota and Business Permit Application in Nigeria
Officially, the timeline for getting an expatriate quota in Nigeria is eight weeks. On the other hand, you can obtain a business permit in two weeks.
