License in Nigeria are compulsory both for Nigerians and foreigners to operate a business legally in different sectors of the economy in Nigeria. This article will guide you on how to get your business license done.
They are permits issued by the government or through its agencies to individuals and companies to carry on business in Nigeria. The primary aim of issuing business licenses to individuals and companies is to regulate the business activities of private and public organizations and to generate revenue for the government.
However, every sector of the economy have different activities that differ from each other, hence, there is no unified business license issued by the government as it varies from the different type and size of the business operated and the issuing authority or agency in charge of the industry.
Moreover, before getting any license in Nigeria for your business, you must register your business/company with the Corporate Affairs Commission (CAC).
Steps in getting a business License
1. To obtain a business license, the first step is to determine the license required to be obtained to operate a particular business. An example of which is the obtainment of license from the Department of Petroleum Resources (DPR) to operate in the oil and gas industry as a service provider.
2. The second step is to identify the relevant government authority office or its website for application if any, for the application of the business license for operation.
3. The third step is to make payment for the prescribed fees.
4. Provide the requisite documents and complete the stages required in the application.
5. The license is obtained when the process is duly completed and the business becomes a legal entity that can operate in Nigeria.
Business licenses are to be obtained before a company can carry on business in the particular sector of the economy the company relates to
In conclusion, business licenses are licenses to be obtained before a company can carry on business in the particular sector of the economy the company relates to, hence it should not be confused with a business permit which is applied for by wholly foreign-owned companies intending to transact in Nigeria.
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