LEGAL ASPECTS OF DOING BUSINESS IN NIGERIA

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LEGAL ASPECTS OF DOING BUSINESS IN NIGERIA

• Nigeria's legal system is based-
• English common law
• Islamic Shariah law (only in some northern
  states)
• Traditional law.

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• The Companies and Allied Matters Decree of 1990
  regulates companies in Nigeria (regulated by THE
  CORPORATE AFFAIRS COMMISSION ) - advice,
  regulate, investigate and supervise all aspects
  from incorporation to winding up.
• The country's judicial system consists of the
  Supreme Court and the Federal Court of Appeal

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Capacity
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• All business enterprises MUST be registered with
  the Registrar of the Corporate Affairs Commission
  (Registrar of Companies).
• Minimum Authorised Share Capital
• Private Company- N10,000
• Public Company- N500,000
• Not less then 25 of the Authorised Share
  Capital must be allotted.

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• Membership of the Company- prohibition of Trusts
• Disclosures to be published
• The law requires companies/enterprises to ensure
  that Certificate of Registration displayed in
  conspicuous positions

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• Operations of Foreign Companies in Nigeria

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• Exemptions
• Invited with approval of Federal Government
• Execution of specific loan project
• Foreign government owned companies- export
  promotion only
• Engineering consultants/ technical experts under
  govt contract.

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• Application for exemption
• Made to SGF.
• The National Council of Ministers may at anytime
  revoke any exemption granted to any foreign
  company, if is of the opinion that company failed
  to fulfil any condition contained in its
  exemption order.

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• Foreign Investment Requirements
• Nigerian Enterprises promotion (repeal) 1995 has
  abolished any restrictions on foreign
  shareholding.
• Exemptions production of arms and narcotic drugs.

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• NIPC Decree no.16 1995-
• Established the NIPC as successor to IDCC

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• Provisions relating to Investments
• A Foreign investor is an approved enterprise is
  guaranteed unconditional transferability of funds
  through an authorised dealer.

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• Establishing new companies

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• Appointment of foreign directors

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• Pioneer Status

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• Labour, Health, Trade Environmental standards

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• Regulatory Bodies