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Legal Aspects of Doing Business in Nigeria: A Snap Shot

Nigeria is essentially a free enterprise country, subject only to regulations as are necessary for the national interest. Federal Law provides, with certain exceptions, that no foreign company shall carry on business in Nigeria unless it is incorporated in Nigeria. This Notes deals with the legal and regulatory issues associated with doing business in Nigeria. It lays out the types of companies that can be registered namely - unlimited liability company, company limited by guarantee and company limited by shares (which could be public or private). The requirements for registration are laid out in the Note, with insights into what is required to establish companies with expatriate interests or labour, and the critical issues associated with these processes. The Author lays out the Legal Framework for Taxation in Nigeria, the different categories of taxes including transactions taxes, income taxes, and others with division along the lines of federal, state and local government taxation. Incentive schemes, Tax holidays as well as Pension schemes are discussed in the Note. The Note evaluates four ways in which returns on investment can be lawfully repatriated out of Nigeria, namely – by way of Dividends; Management and Technical Services Fees or Consultancy fees; Royalty; and Loan Capital with interest repayments. Key regulatory approvals, permits and licences are discussed in the note, with an indication on the ways of enforcing legal rights in the event of a dispute.

Fabian Ajogwu prepared this Note as basis for class discussion. Kenna Partners 09:01, 22 July 2012 (UTC)