Start ups · 7 min read
The new business filing checklist
Every registration, return and remittance a new Nigerian company owes in its first year, in the order you will meet them. Tick them off as you go.
Most new companies do not get into trouble through bad decisions. They get into trouble through missed registrations: the VAT number nobody applied for, the employer registration that waited until a staff member asked for their tax card. By the time anyone notices, there are penalties and interest on returns that were never filed.
This checklist is the one we give founders at our first meeting. It assumes a private limited company with a December year end, a handful of staff and customers in Nigeria. If you are a foreign owned company, there are extra steps for capital importation and expatriate quotas, which we cover separately.
Week one
First 30 days
Every month
Every year
Tick items as you complete them. Nothing is saved or sent.
The first company income tax return is due 18 months after incorporation, or six months after the first year end, whichever comes first. It catches out more founders than anything else on this list.
A few things people get wrong
Assuming small means exempt. Small companies may pay a zero rate of income tax, but they still have to file. Not filing is a penalty on its own.
Leaving PAYE until there are more staff. PAYE applies from the first salary you pay, including to directors who take a salary.
Not collecting withholding tax receipts. When customers deduct tax from your invoices, that money is yours to claim back against your own tax. Without the receipt, it is lost.
| Registration | With | When |
|---|---|---|
| Incorporation | Company registry | Before trading |
| Tax identification number | Federal tax authority | Week one |
| VAT | Federal tax authority | Before first taxable sale |
| Employer PAYE | State revenue service | Before first payroll |
| Pension | Chosen pension administrator | Before first payroll |
General guidance for this demo, not advice for your company. Rules change, so check current requirements with your adviser.