The federal government has reduced the cost of registering businesses by half, starting October 1, 2013, to encourage investments in the country.
Minister of industry, trade and investment Mr Olusegun Aganga, who made this known yesterday, explained that the Corporate Affairs Commission (CAC) had reduced capital registration costs by 50 per cent for equity registrations of N500million or lower, and by 25 per cent for equity registrations from N500million and above.
The minister revealed this during the signing of a Memorandum of Understanding (MoU) between his ministry and the Ministry of Development, Industry and Foreign Trade of the Federal Republic of Brazil on the promotion of trade and investment, in Abuja.
The 19-man Brazilian delegation was led by the country’s deputy minister of development, industry and foreign trade, Mr Richardo Schaefer.
Aganga said the initiative was in line with the ministry’s investment climate reform programme aimed at strategically repositioning Nigeria as the preferred destination for both local and foreign investments.
“Following the directive from the president, the Corporate Affairs Commission has since October 1, 2013, slashed fees for business registration by 50 per cent. Under the new regulations, capital registration fees for companies (under Part A) have been reduced across board. While capital registrations below N1million will retain a flat fee of N10, 000; all registrations between N1 million and N500 million are reduced by 50 per cent; and all registrations above N500million are reduced by 25 per cent.
“By this action, Nigerian companies will now save well over N2bn per annum, which can be used to sustain their businesses, hire more staff, and expand operations. The new regulation has been deliberately set up to ensure the bulk of these savings go to smaller businesses, which need the lower fees more,” he said.
He added that the signing of the MOU with Brazil would make it possible for various agencies responsible for skills development, industry and development finance in both countries to work together to deliver better services for the citizens of their respective countries.
“The aim of the MOU is to strengthen the economic cooperation between the two countries at the bilateral and multilateral level; increase and promote the bilateral trade of strategic items of mutual interest, and support cooperation between institutions of both countries responsible for the promotion of trade and investment and official financing such as Banco Nacional do Desenvolimento Economico Social (BNDES) and the Bank of Industry (BOI).