Introduction
A tech company is a company that provides technological services or products. Its creation and operations as a business entity therefore require compliance with appropriate laws and regulatory bodies for necessary approvals, permits and licenses.
This article will outline the registration requirements for a tech company in Nigeria.
Major registration requirements
The registration requirements for a tech company may depend on the technology sector of the company being registered. Thus it is important to identify the specific tech services or products the company is to provide and the chosen business structure for providing same in other to determine the requirements and regulations to be complied with.
Laws and Regulatory bodies for the registration of a tech company:
- CORPORATE AFFAIRS COMMISSION (CAC)
The Companies and Allied Matters Act (CAMA), 2020 is the principal law establishing the Corporate Affairs Commission (CAC) which is the body that regulates the different business structures in Nigeria from creation to winding up. The most suitable and recommended business structure for a tech company is a limited liability company because of its benefits.
Registration with the CAC is the first legal requirement when registering any business including a tech company. The certificate of incorporation obtained will be necessary for registration with other regulatory bodies.
The procedures for registering online with the CAC include:
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- Availability check and reservation of company name
- Payment of prescribed filing fee
- Duly completed information and document upload
- Payment of stamp duty
- After approval, download of company incorporation certificate
- TAX AUTHORITIES
Businesses have tax obligations to fulfill to the Nigerian Government and so it is a major requirement that all businesses and companies register with tax collection authorities such as the Federal Inland Revenue Service (FIRS) and State Inland Revenue Service (IRS) for their Companies Income Tax and Value Added Tax (VAT) remittances. A tech company therefore must register and obtain a unique Tax Identification Number (TIN) for the filing of tax returns. Failure to register with the tax collection authorities, and to remit applicable taxes as and when due attracts penalties for the non-compliance.
- NATIONAL INFORMATION TECHNOLOGY DEVELOPMENT AGENCY (NITDA)
All tech companies in Nigeria are required to be registered with NITDA. NITDA is the regulatory body empowered by the National Information Technology Development Agency (NITDA) Act, 2007 to regulate and promote the use and development of Information Technology (IT) in all spheres of Nigeria through the development of IT framework, standards, guidelines, regulations, and policies. NITDA caters for electronic governance and monitoring of the use of electronic data exchange.
- NATIONAL OFFICE FOR TECHNOLOGY ACQUISITION AND PROMOTION (NOTAP)
Tech companies engaged with foreign investors for the transfer of foreign technology into Nigeria or use of intellectual property rights or provision of managerial/supervisory assistance, etc are required to register their engagement agreements with NOTAP. NOTAP is empowered by the NOTAP Act, LFN 2004 to regulate the transfer of foreign technology to Nigeria which includes the registration of all technology transfer agreements and contracts in any sector of Nigeria economy.
Other requirements
Depending on the specific services a tech company intends to engage in, such tech company may be required to register with other regulatory bodies such as Nigeria Telecommunication Commission (NCC), Nigeria Investment Promotion Commission (NIPC), Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), etc, to obtain business permits and licenses to operate.
Conclusion
The outlined requirements are a guide to the registration of a tech company in Nigeria. However, it is important to seek legal advice on specific compliance requirements.
Authors: Mr. Adeola Austin Oyinlade and Ms. Silver Obioha