New Pre-Incorporation And Post-Incorporation Process

In line with the ease of doing business policy, CAC has made changes to the pre-incorporation and post-incorporation processes on its portal.

PRE-INCORPORATION
The changes to the pre-incorporation process on the new platform are:
1. Users will now have an option to check for conflicting names before making a name reservation to reduce the number of denied name reservations and the attendant costs.
2. Users will no longer be directed to the “Upload” segment of the website but will now be prompted to upload signed incorporation documents as soon as the payment of filing fees and stamp duties are made.
3. Certificates of Incorporation will now be printed by the accredited user.
4. The requirement for a valid Company email address is now mandatory as the Commission will communicate all future correspondences (including but not limited to the acknowledgement of post-incorporation filings) to the company via its registered email address.

POST INCORPORATION
The post-incorporation segment of the CAC’s portal will officially become operative on Monday, 19 August 2019. The procedure for making post-incorporation changes are as follows:

1. When a company is incorporated, the portal sends a notification to the company’s registered email prompting it to create online profiles of accredited users who it intends to engage for purposes of its post-incorporation filings.
2. The Company enters details of the users and their email addresses. 3. Once this is completed, the accredited user receives an email with login details, which grants them access to the portal to process post-incorporation filings on behalf of that Company.

Further, all CTC requests will now be made online and the CTCs printed by the user. All documents emanating from the Commission (Certificates of Incorporation and CTCs) will now bear an electronic certification stamp with a QR Code. The innovation of the QR Code enables any interested party with a smartphone to scan the code and confirm the authenticity of the document. Once scanned, the code will indicate if the document is genuine or not and display all the vital contents of the documents on a mobile device. (You can download a QR Scanner from your mobile play store.)

Prior to the advent of the online post-incorporation filings, users have been able to make multiple changes per filing. For example, a company may by one Form CAC 7A appoint a Director, change the registered address of another and change the signature of yet another director. Under the current dispensation, the changes would be done separately and assessed individually so the Commission is not short-changed.

There has also been a slight change to the cost of obtaining CTCs of Annual Returns. Typically, a company pays N2,000 for CTC of the Annual Returns Form CAC 10, the Company’s Audited Accounts and CAC’s letter. Companies will now be required to pay N2,000 for each of these documents.”

Please note, however, that the post-incorporation filings will be limited to changes in Registered Address and filings of Annual Returns in respect of Business Names for now.

The Federal Government of Nigeria has by Official Gazette No. 84, Vol.104 of 2017 (“the Gazette”) published a comprehensive list of pioneer industries and products (“the pioneer list”) referenced S.I. No. 24 of 14 August 2017, and effective from 7 August 2017.

The pioneer list comprises 99 pioneer industries (which include the extant pioneer industries and 27 new industries approved by the Federal Executive Council in August 2017) in the following major sectors of the economy:
 
1.    Agriculture
2.    Mining and Quarrying
3.    Manufacturing
4.    Electricity and Gas Supply
5.    Waste Management
6.    Construction
7.    Trade
8.    Information and Communications
9.    Professional Services
10.  Financial Services
11.  Administrative Services
 
Pioneer status is a fiscal incentive provided under the Industrial Development (Income Tax Relief) Act, Cap I7, Laws of the Federation of Nigeria, 2004, and administered by the Nigerian Investment Promotion Commission (NIPC). The incentive entitles eligible companies to the income tax holiday for up to five (5) years – three (3) years in the first instance, renewable for an additional maximum period of two (2) years. In addition to income tax holiday, pioneer companies enjoy other benefits, such as exemption of dividends paid out of pioneer profits from withholding tax.

The review and expansion of the pioneer list by the Federal Executive Council (FEC) is a welcome development that aligns with its objective of economic diversification through the acceleration of the growth of the non-oil sector of the economy. The expansion of the list is expected to stimulate the interest of investors in the new pioneer industries and attract the much-needed private capital to the economy. It is also expected that the NIPC will continue to streamline its processes to ensure timely approval of the application by eligible investors for the incentive.

We encourage investors to review the pioneer list, evaluate their eligibility for the incentive and seek professional guidance as necessary.

Please click here to download a copy of the Gazette and our publication of the 27 pioneer industries approved by the FEC in 2017.

For further enquiries on the above and how we can assist, please contact:

Niyi Ogunkunle

niyi@imekoassociates.com

 

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