SEC-S20W4 | My Business Ideas | Registration, License, and Taxes

Hello friends,

It's another week to keep deliberating on the business matter...

Before diving into starting a business in Nigeria, it's crucial to adhere to the regulations set by the Corporate Affairs Commission (CAC), the governing body for business registration in Nigeria. Although not all businesses are registered but when I talk about business, I mean those big/ large firms.

The process involves some steps to successfully register your business with the CAC.

• The first step is to confirm the availability of business name. This is a clearance done by the CAC to be sure no other business bears the same name with each other. This process takes about 10-12 working days and if it is approved, then the business is set to move on to next thing in line.

• Company registration comes up after the verification of business name. A certain amount of money is involved and after will the business be confirmed registered.

• Stamp duty is the money paid to the Federal Inland Revenue Service (FIRS) and it's a compulsory legal money that is paid by businesses or company before they can be submitted for registration.

• Registration and issuance of certificate

• Tax registration

Since I am into food business, I have to pass through this registration, license and taxes to be sure my food is good for the public. However, there is an agency called NAFDAC (National Agency for Food and Drug Administration Control), this agency helps foo businesses to;

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Purchase Product Registration Form online http://registration.nafdac.gov.ng/ and be submitted along with the following documents;

• Application letter for product registration

• Photocopy of receipts of payment for pre-production inspection

• Laboratory analysis

• Certificate of analysis for finished products

• One food sample and three food labels

• Evidence of trademark approval from Federal Ministry of Commerce

• Photocopy of certificate of incorporation of company

• Contract manufacturing agreement (where applicable)

For my business currently, I am still on the foundation of registering this business because it entails a lot. I have been able to secure a business name and have submitted it for review.

But I don't have to take all the whole time in the world to complete the process else, some interested person might go ahead with my chosen business name.

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Running a food business becomes easier when all the requirements mentioned above for registration are met. The Nigerian government supports us in issuing licenses for food businesses, making the process smooth and hassle-free.

Once the necessary conditions are fulfilled, we can establish the business without unnecessary expenses or complications. The government's cooperation (NAFDAC) in this matter is crucial as we aim to contribute to the growth of the business. The entire process, from submitting proposals to obtaining the permit, usually takes around 31 days or less.

My business have dealings with various taxes like the Value Added Tax (VAT), which is typically 7.5% of the services provided. Then, there's the Company Income Tax (CIT), which usually accounts for 30% of the business's profits. Additionally, there's the Stamp Duty & Territorial Development Tax, usually around 0.5% for any documents and depending on the business location.

When it comes to Company Income Tax (CIT), it's essential to note that any changes in profits will impact what needs to be paid. If the current profits are higher than before, the tax amount will be more, but it always remains at 30%. Conversely, if profits decrease, the tax amount will also reduce. But if you pay over, tax rebate is involved.

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Tax rebates involve getting a refund for excessive tax payments. This issue may occur due to overpayment or errors in tax calculations. Customers who are seen in this situation are entitled to a tax rebate.

To apply for a tax rebate, you need to submit an application to the relevant authority, such as CAC or FIRS. They will review your request and ensure everything is in order. Once approved, the money will be refunded to your account without any hassle.

In Nigeria, there's a court that handles tax matters, depending on the amount of tax we owe because not all matters are handle by ordinary people. There are legal experts who are set up to resolve tax issues.

However, if I face any tax related problems, I either choose to consult some professionals or head way to meet the legal experts who are also in the field of professional.

In my country, it is only those who knows their rights that gets what they desire, but when I don't know my right in the tax payment field, I'll either pay more or lose my business. Different countries have their own business regulations and policies, so is Nigeria and these policies are designed to improve people's growth and expansion in business.