Case 02Doing business in Nigeria
Serving Nigerian enterprise customers without incorporating locally.
A foreign technology company had Nigerian enterprise customers but no wish to set up a Nigerian company. The question was how far it could go, and on what terms.
- Client
- Foreign technology company (confidential)
- Sector
- Enterprise technology
- Practice
- Technology & Regulatory
- Jurisdiction
- Nigeria
The brief
Our client sells technology to enterprise customers in Nigeria. It did not want to incorporate a local company, and needed to know whether its model allowed that, and what it would cost in tax, regulation and risk.
Nigerian company law generally requires a foreign company to incorporate locally before it carries on business in Nigeria, so the analysis turned on what the client actually does here and how its contracts are structured.
Our advice
- 01
Presence analysis
Assessing whether the client’s activities in Nigeria amount to carrying on business locally, and the routes available if they do.
- 02
Contracting model
Structuring the customer contracts so that the client could serve Nigerian enterprises from outside Nigeria.
- 03
Tax exposure
Advising on the client’s Nigerian tax exposure as a non-resident company, including its digital-economy obligations.
- 04
Data and regulation
Mapping the data protection and sector regulation that applies to a foreign provider serving Nigerian customers.
Outcome
The client continued to serve its Nigerian customers on a defined legal footing, with a clear view of the activities that would trigger local incorporation.