HOW TO OPEN A COMPANY'S BANK ACCOUNT IN NIGERIA
Step by step guide on how to open a company's bank account in Nigeria
To open a company and bank account in Nigeria, you'll need to follow a series of steps. Here's a general overview of the process:
1. Company Registration
a. Choose a suitable business structure: Common options include a private limited liability company (Ltd) or a public limited company (PLC). Decide on the structure that aligns with your business goals and requirements.
b. Choose a unique company name: Ensure your proposed company name is not already in use by another registered company in Nigeria.
c. Prepare required documents: These typically include a memorandum and articles of association, forms CAC 1.1 and CAC 1.2, and a means of identification (e.g., international passport, driver's license).
d. Register with the Corporate Affairs Commission (CAC): Submit your completed documents to the CAC and pay the necessary registration fees. You can either do this online via the CAC website or visit a CAC office in person
2. Tax Registration
a. Obtain a Tax Identification Number (TIN): Register with the Federal Inland Revenue Service (FIRS) to obtain a TIN, which is required for tax purposes. You can complete the registration online or visit a tax office.
b. Register for Value Added Tax (VAT): If your business turnover exceeds the stipulated threshold, you'll need to register for VAT with the FIRS
3. Obtain Relevant Permits and Licenses
Depending on the nature of your business, you may need to obtain specific permits and licenses from relevant regulatory bodies. This could include sector-specific licenses, trade permits, or other industry-specific requirement
4. Bank Account Opening
a. Choose a bank: Research different banks in Nigeria and consider their offerings, fees, and proximity to your business location.
b. Gather required documents: Typically, you'll need to provide your company's Certificate of Incorporation, TIN, forms of identification for company directors, and proof of address.
c. Visit the bank: Schedule an appointment with the chosen bank and visit their branch with the required documents. Complete the account opening forms provided by the bank.
d. Minimum deposit: Some banks may require a minimum deposit to open a corporate bank account. Ensure you have the required funds available
5. Compliance and Post-Registration
a. Obtain a company seal: It's common practice to have a company seal, which can be obtained from a seal-making company.
b. Register for employee-related obligations: This includes registering for the Employee Compensation Scheme (pension) with the National Pension Commission (PENCOM) and the Employee's Compensation Act with the Nigerian Social Insurance Trust Fund (NSITF).
c. Obtain any necessary business permits: Depending on your industry, you may need additional permits or licenses to operate legally
It is important to note that the process and requirements may vary depending on your specific circumstances and the type of business you intend to operate. It is advisable to consult with a legal professional or business consultant familiar with Nigerian regulations to ensure you meet all the necessary requirements