FROM REGISTRATION TO REVENUE: BANKING, TAX & OPERATIONAL LAUNCH IN NIGERIA
“Turning your incorporated entity into a business that can transact, hire, and scale”
Introduction
You have a company, a business permit, and a tax ID. But can you pay a supplier? Can you receive payments from customers? Can you remit profits? Getting a foreign-owned company to the point where it can transact is a phase that surprises many. This final leg of the market entry journey the corporate bank account, capital importation, tax registration, and initial compliance is where the business truly goes live. Here is what you will face, and how we accelerate each step
1. The Corporate Bank Account Challenge
Section 42(1) of CAMA 2020 states:
“A company shall, as from the date of incorporation, be a body corporate with all the powers of a natural person of full capacity.”
Opening a corporate current account in Nigeria as a foreign-owned entity is not a simple branch visit. Banks treat foreign-owned companies as high-risk for compliance purposes and require a detailed package before releasing account opening forms. The standard documentary checklist includes:
- Certificate of Incorporation (CAC).
- Memorandum and Articles of Association.
- Tax Identification Number (TIN) from the Federal Inland Revenue Service.
- Board Resolution authorising the account opening and naming signatories.
- Valid identification and Bank Verification Number (BVN) for all directors and significant signatories ,including foreign directors.
- Business Permit from the Ministry of Interior
- Certificate of Capital Importation (if foreign equity has been brought in).
- Utility bill and registered office address verification
Foreign directors without a Nigerian BVN face a hurdle: BVN enrolment requires biometrics captured in Nigeria. We guide clients through the process of obtaining a BVN for foreign directors either during a visit to Nigeria or through limited offshore enrolment facilities at select Nigerian bank branches abroad. Some banks now allow account opening with a waiver while the BVN is being processed, but this is not uniform. Once the package is submitted, banks conduct compliance checks, including physical address verification. The full process can take 8 weeks or more if managed without insider guidance. Our relationships and pre-packaged documentation routinely halve this timeline.
2. Capital Importation: The Certificate of Capital Importation (CCI)
Foreign equity injected into a Nigerian company must be imported through an authorised dealer (a Nigerian bank) via the Central Bank of Nigeria’s e-Import system. The bank issues a Certificate of Capital Importation (CCI), which serves as proof that the funds entered legally and at a documented exchange rate. The CCI is critical because:
- It is a prerequisite for Business Permit finalisation and Expatriate Quota approvals.
- It entitles the investor to repatriate capital and dividends at the official market rate under NIPC guarantees.
- Without a CCI, the foreign equity is effectively undocumented and cannot be relied upon for immigration, tax, or exit purposes.
We coordinate the capital importation process, ensuring that the remittance narrative, beneficiary details, and purpose code match regulatory requirements, preventing funds from being blocked or returned.
3. Tax Registration and Early Compliance
A newly incorporated company must register with the Federal Inland Revenue Service (FIRS) for a Tax Identification Number (TIN) and, where applicable, for Value Added Tax (VAT). The key tax types that will apply in the first year include:
- Companies Income Tax (CIT): 30% for large companies (with a lower rate for companies under a certain turnover threshold as defined by the Finance Act). Filing is done annually with self-assessment, and companies must pay provisional tax in instalments.
- Value Added Tax (VAT): 7.5% on the supply of most goods and services. Registration is mandatory once the company’s turnover exceeds the VAT threshold.
- Withholding Tax (WHT): Deducted at source from payments to contractors, consultants, and certain service providers, ranging from 5% to 10% depending on the transaction.
- Pay-As-You-Earn (PAYE): Monthly payroll tax on employees’ emoluments, remitted to the State Inland Revenue Service where the employee resides.
Compliance in year one is straightforward if set up correctly. We work with accredited tax consultants to ensure registrations are filed, returns are submitted on time, and the company takes advantage of any applicable incentives, such as pioneer status for qualifying industries.
4. Sectoral Licensing at a Glance
While not every company requires a special licence, if your activity falls into a regulated sector, the licence is part of the operational launch, not an afterthought. Examples:
- Financial Technology: The Central Bank of Nigeria regulates payment service providers, mobile money operators, and switching companies. Licence categories include Payment Solution Service Provider (PSSP), Mobile Money Operator (MMO), and others. The Securities and Exchange Commission regulates crowdfunding and digital asset exchanges
- Oil and Gas: The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) handles upstream licences; the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regulates midstream and downstream.
- Telecommunications: The Nigerian Communications Commission (NCC) grants spectrum and operating licences.
- Broadcasting: The National Broadcasting Commission (NBC) licences radio, television, and cable operations.
We identify the applicable licence at the structuring stage and build its application timeline into your overall entry plan, ensuring no start-date surprises.
The Go-Live Checklist
Before you invoice your first client or sell your first unit, ensure:
- Company incorporation and NIPC registration completed.
- Business Permit granted (if foreign shareholding).
- TIN and VAT registration obtained.
- CCI issued for imported equity.
- Corporate bank account opened and internet banking active.
- Expatriate Quota and CERPACs secured for key personnel.
- Sectoral licence (if applicable) in hand.
- Payroll and accounting systems set up for PAYE and WHT compliance.
Conclusion
The distance between a CAC certificate and your revenue is the distance that defines whether a market entry succeeds or silently dies. At Peamve Consult Ltd, we compress that distance. Our team handles the documentation, the government liaison, the banking introductions, and the tax registrations in a single, coordinated workflow. You focus on your product and your customers.
