INCORPORATION OF FOREIGN COMPANIES IN NIGERIA: CHALLENGES AND PROSPECTS

Abstract

One of the many ways that economies of nations grow is by attracting foreign Investment to increase their revenue. Foreign Investors who want to do business in Nigeria and also invest, needs to incorporate their business legally to be able to operate fully and comply with the various regulations on board. The topic extensively looked at how foreign companies can be incorporated in Nigeria, the prospects, challenges and more so incentives that are available to foreign Investors. The paper utilized the doctrinal research methodology to examine the challenges foreign companies face while going through incorporation, the prospects for Nigeria and the incentives that is available to boost and attract more foreign investment. One of the findings of this work is that there is need to de-cluster the complexities and bottlenecks surrounding foreign company incorporation and regulatory compliances especially in securing permits and licenses in various sectors. More so, there is need to put in place infrastructures to aid ease of doing business in Nigeria as what we are lacking has the capacity to scare our foreign investors away. A comparative analysis of how foreign companies are incorporated in United Kingdom, South Africa and Canada was also looked at, so as to see how they attract foreign investors, their incorporation processes and the various incentives they have put in place to retain their foreign investors. Several recommendations were made, which the writers believe if utilized will boost our business sector and attract more foreign investment.