Starting a business in Yobe

Starting a Business in Yobe

CORPORATE AFFAIRS COMMISSION

Below is a detailed summary of the processes an investor/entrepreneur must follow in order to incorporate and register a new firm, along with their associated time and set- up costs. It examines the procedures, time, and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy’s per-capita gross national income.
Starting a business in Yobe State simply involves the following steps:

BUSINESS REGISTRATION PROCESS

The first step toward business registration involves a name search to check the availability of the company’s name with the Corporate Affairs Commission [CAC]. There is a Corporate Affairs Commission’s office, as well as a stamp duty office located in the state capital, which makes the business registration process much easier and simple. Yobe State office of the Corporate Affairs Commission also operates an online system that allows for online search of unique company names upon the purchase of an e-payment card for a flat fee of NGN 500 from an accredited bank. The company name reservation lasts 60 days but can be renewed for a similar period.

Prepare the requisite incorporation documents and pay the stamp duty involving the following tasks:

  • Preparing and printing the memorandum and articles of association.
  • Completing the requisite statutory forms, and
  • Having the memorandum and articles of association stamped by the Federal Board of Inland Revenue Service.

Sign the Declaration of Compliance before a Commissioner for Oaths or notary public. A declaration that the requirements of the Companies and Allied Matters Act have been met must be sworn by

  1. a barrister or solicitor engaged in the formation of the company or
  2. by a person named in the memorandum and articles of association as a director or secretary of the company.

This procedure can be done before a notary is public or filed at the state or federal High Court. The common practice is for this declaration to be sworn before a Commissioner for Oaths at the Yobe State High Court.

Obtain a bank draft from a bank for payment of the registration fees

Payment of the incorporation fee is made to any of the receiving Banks designated by the Corporate Affairs Commission.

Register the company with the Corporate Affairs Commission

The applicant must file with the Corporate Affairs Commission the required incorporation documents and forms, which include:

  • Stamped memorandum and articles of association [2 copies]
  • Notice of registered address.
  • Particulars of directors.
  • Declaration of compliance and the prescribed registration fees.

Register at the Tax Office of the Federal Board of Inland Revenue for income tax and VAT

Entrepreneurs can register for both corporate income tax and VAT at the Integrated Tax Office. For corporate income tax, the Federal Inland Revenue Service (FIRS) will require the applicant to complete tax registration forms. The new company registers at a federal tax office nearest to its place of business or registered office. A letter is written to the tax authority applying for a tax clearance certificate. A form obtained from the tax office is filled and the following documents submitted with it:

  • Taxpayer registration input form.
  • Completed FIRS questionnaire.
  • Copy of memorandum and articles of association.
  • Names and addresses of directors.
  • Copy of the certificate of incorporation.
  • Name, and address of tax adviser.
  • Letter of appointment of tax adviser and a letter of acceptance.

Company Status


For newly registered companies within 6 months of incorporation.

No fee for companies that are yet to commence business and show up for registration after 6 months of incorporation.

Tax Obligations subsequent years until it files a notice of commencement of business.

A pre-operation levy of 25,000 is payable for the first time and N20,000 is payable for subsequent years until it files a notice of commencement of business.

Register for personal income tax (PAYE) at the State Tax Office.

The employers in the newly incorporated company are required to register with the relevant state tax authority for purposes of deducting income tax from employees. Once an application is filed with a copy of the certificate of incorporation attached, a reference file is then opened for the company. There is no cost related to this registration.

GENERAL REQUIREMENTS FOR INCORPORATION OF COMPANIES.

1. Incorporation of Company (Private or Public).

2. Incorporation of a Company Limited by Guarantee Requirements.

3. Conversion and Re-registration of Private Company as Public

4. Re-registration of Company Limited by Shares as Company unlimited

5. Re-registration of Unlimited Company as Limited by Shares

6. Registration of Mortgages, Debentures, and Charges

7. Increase in Share Capital

8. Change of Name

9. Company Searches

10. Obtaining Certified True Copies (CTC) of filed Documents

11. CTC OF Certificates

12. Other Statutory Filings

BUSINESS PREMISES REGISTRATION

Currently, no investment approval is required, however, all investments with foreign participation are required to register with the NIPC. This registration is required for investors to be covered by the treatment and protection clauses of the NIPC Act. Companies investing in an Export Processing Zone are not required to register with NIPC.

Category of Company

Limited liability company, partnership, or sole proprietorship

Tax Obligations

Ranges from NGN 6000 to NGN 100,000.

For a medium manufacturing company located in the Yobe metropolis NGN 20,000.

The annual renewal fee for both categories is the same as the initial registration.

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