IN D E X

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LCCI BUSINESS YEAR BOOK 2012
Approval:-
-Business Permit and Expatriate
Quota
-Pioneer status and other
incentives (where applicable)
2. The application of the NIPC should
be accompanied with the following
documents:-
- Copies of the treasury receipt for
the purchase of NIPC Form
- Copies of the Certificate of
incorporation of the applicant company.
- Copies of tax clearance certificate of
the applicant company.
- Copies of the Memorandum and
Article of Association
- Copies of treasure receipts as
evidence of payment of stamp duties
on the authorized share capital of the
company as at date of application
- Copies of the joint- ventures
Agreement UNLESS 100% foreign
ownership is envisaged
- Copies of Feasibility Report and the
P r o j e c t i m p l e m e n t a t i o n
programmes of a company for its
proposed business. It is advisable
that quotation, letters of intent and
other such document relating to
industrial plant and machinery to be
acquired by the company, be
forwarded either as annexes or
separately. In order to discourage the
dissipation of administrative energy
on speculative applications, the
NIPC favours the applicant who has
demonstrated positive intention to
commence business as and when
approvals are granted. Hence, the
requests for evidence of acquisition
of business of premises and
evidence of having sourced the plant
and machinery to be utilized the
company's business.
- Copies of Deed(s) of Sub-Lease/
Agreement evidencing form
commitment to acquire requisite
business premises for the company's
operation. By implication, the
ultimate NIPC approvals do
incorporate approvals of the
industrial site locations indicated in
the application.
- Copies of training program or
personnel policy of the company,
i n c o r p o r a t i n g m a n a g e m e n t
succession schedule for qualified
Nigerians.
- Particulars of names, addresses and
nationalities and occupations of the
proposed directors of the company
- Job title designations of expatriate
quota position required, and the
Academic and working experience
repaired for the occupants of such
position. It is pertinent to note that
expatriate quota on a "Permanent
Until Reviewed" (PUR) status is
only accorded to a Managing
Director, where the non-residence
shareholders own a minority of the
company's shares, and the
authorized capital of the company is
N5 million and above.
- Copies of information brochure on
foreign shareholder (if available) as
testimony of international expertise
and credibility of the foreign partner
in the proposed line of business.
Stage D
1. Having obtained the requisite
NIPC approvals and Business
Permit Certificate, the nonresident
shareholder must act with
dispatch to import its foreign
equity holding in the company.
To ensure prompt importation
of the foreign equity
components, the NIPC may
grant Business Permit but defer
approvals for Expatriate Quota
and Pioneer Status and other
applicable investment
incentives, until evidence of
capital importations produced.
2. After obtaining Certificate of
Capital Importation from the
bank, the NIPC is to be notified
of this fact with the
supporting documentation, in
order for it to resume
processing of pending
approvals that might have
been deferred on such ground
3 As soon as expatriate quota
positions are granted and the
respective individuals to fill the
quota positions are recruited, the
company must embark on steps to
obtain work permit and residency
status for the expatriate employers
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and their accompanying spouses
and children (if any)
5.2 The difference between
"business Permit" and
"Expatriate Quota'’
Business permit, as the name connotes,
is the permanent authorization for the
local operation of business with foreign
investment company or otherwise.
Expatriate Quota is the official permit
to a company; conveying permission for
the company to employ individual
expatriates to specifying the permission
duration of such employment. The
expatriate individual quota forms the
basis of work permits for expatriate
individual employed (whose
qualifications must fulfill the criteria
established for the particular quota
position).
Expatriate quota positions are usually
granted for 2-3 years subject to renewal,
EXCEPT in cases where companies
qualify for and are granted not more
than on (I) PUR Quota (i.e Permanent
until Reviewed) position.
5.3 The current regulation on
the appointment of foreign directors
The promoters of business ventures in
Nigeria are free to appoint directors of
their choice, either Foreign or Nigerian
and the directors may be resident or
nonresident . The application of the
NIPC must reflect the names of the
proposed Nigeria and foreign directors
(with an indication of resident and
nonresident directors). The Business
Permit Certificate consequently issued
following such application usually
reflects the respective names of the
directors representing each proprietor or
co-proprietor. Payment of foreign
directors fees are remittable in the same
manner as dividends accruing to the
foreign company. However, since such
fees are taxed at source (5% as a
withholding tax) each foreign director's
fees are remittable subject to
satisfactory evidence that the taxable
amounts on such fees have been paid.
5.4 A Pioneer Status (Tax Holiday)
Advantages to a company
The industrial Development (income
Tax Relief) Act, Cap. 179 Laws of
Nigeria, 1990, declares a number of
industries as pioneer industries. Thus,
any company whose product fall within