Few things are more exciting in the life of your company than an international expansion. Choosing Nigeria as the site of your next subsidiary means you’ll enjoy brand new business relationships, employment contracts, and more. However, setting up a Nigeria subsidiary doesn’t come without challenges.
G-P exists to eliminate these challenges entirely. You won’t have to establish a subsidiary in a foreign country when you work with us. We’ll use our subsidiaries all over the world to hire employees on your behalf, add them to our already compliant payroll, and take on all compliance. Best of all, we’ll help you start working in a few days instead of a few months.
How to Set Up a Nigeria Subsidiary
Learning how to set up a Nigeria subsidiary isn’t an easy task and depends on a variety of factors. You should start by finding a place for your physical office space. Since Nigeria is made up of different states, you need to keep in mind that each state could have its own Nigeria subsidiary laws. Always research your preferred area before signing a lease or securing a building to make sure it’s easy to incorporate in the area.
Another important decision that will impact the setup process is your entity. Different subsidiary structures have their own rules and will affect how you operate in the country. For example, a limited liability company (LLC) will give you the most freedom to operate in Nigeria, while a branch company will give you the least. You can choose among different entities, including an LLC, partnership, or establishment.
The steps to set up a Nigeria subsidiary as an LLC include:
- Choosing a unique and available name
- Providing a company objective
- Providing a registered principal address for the company
- Providing details of the parent company and the subsidiary’s shareholders
- Providing details of the company’s secretary
- Giving authorities the resolution of the parent company or holding company that authorizes the registration of the subsidiary
- Registering the memorandum and articles of association of the company
- Providing a copy of the certificate of incorporation
Nigeria Subsidiary Laws
Nigeria’s subsidiary laws stipulate certain requirements for LLCs to operate. For example, you need at least two shareholders and two directors of any nationality. Minimum share capital is NGN 100,000 and companies with foreign shared holders must have a minimum share capital of NGN 10 million. It usually takes about six weeks for a company to incorporate if they follow all of the country’s subsidiary laws every step of the way.
Benefits of Setting Up a Nigeria Subsidiary
Although learning how to set up a Nigeria subsidiary is a tedious process, it does come with some benefits. The biggest is that you can start working in the country legally. Incorporating as an LLC is an even better option because it will give you the benefit of limited liability. Your parent company won’t face any costly litigation or other problems related to the subsidiary. Plus, your subsidiary can operate independently of the parent company with its own company culture that meets Nigeria’s overall culture.
G-P provides all these benefits and more. We’ll use our existing subsidiary to help you start working in Nigeria faster. You won’t have to incorporate, and you also won’t have to worry about compliance. Our team will shoulder all compliance and handle Nigeria’s subsidiary laws for your company. You’ll only need to think about keeping your business successful.
Other Important Considerations
Before you start the incorporation process, you should employ an expert to help you succeed. A lawyer, accountant, consultant, or other third party can make sure you follow all of Nigeria’s subsidiary laws. You can also work with an existing employee who’s in charge of learning the laws, but an expert can provide more knowledge.
Since it takes at least six weeks to set your company up, you’ll need to clear your schedule. You may need to travel back and forth to Nigeria or spend your time on the incorporation process. It’s also a good idea to set aside the money you’ll need to complete your Nigeria subsidiary setup process.
Let G-P Help With Your Expansion
G-P makes it easier to expand to a new country with Nigeria subsidiary outsourcing. Contact us today to learn more.