As part of measures to enhance the ease of doing business in the country, the Nigerian government has merged the processes of registering a business and getting tax identification numbers.
In a statement yesterday, the Corporate Affairs Commission (CAC) said business owners who register their organisations with the Corporate Affairs Commission (CAC) would no longer need to obtain the tax numbers at the Federal Inland Revenue Service (FIRS).
The statement said that certificates of incorporation issued by the CAC would now carry the numbers. In a statement shared via its Twitter page, the CAC said that companies no longer need to seek issuance of tax numbers after incorporation.
“This is to inform our esteemed customers that as part of the ease of doing business initiative, certificates of incorporation of companies registered under part A of CAMA will henceforth carry tax identification numbers issued by the Federal Inland Revenue Service (FIRS),” the corporation said.
“This has dispensed with the need for companies to apply for the issuance of tax identification numbers from FIRS after incorporation.”
Last October, the World Bank listed Nigeria among the economies with the most notable improvement in the Ease of Doing Business.
In the World Bank Ease of Doing Business report 2020, the World Bank named Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India and Nigeria.
Overall, Nigeria emerged 131 out of 190 countries, up 15 places from 146th position last year, or 56.9 percent point score. The score was about 3.5 percent better than 53.4 percent point score recorded in 2019.
The report said Nigeria conducted reforms impacting six key indicators, namely making the enforcement of contracts easier, protecting minority investors, dealing with construction permits, protecting minority investors, starting a business, dealing with construction permits.
In starting a business, the country ranked 105, or 86.2 percent; dealing with construction permits (55), or 73.6 percent; getting electricity (169), or 47.4 percent; registering property (183), or 29.5 percent; getting credit (15), or 85 percent; protecting minority investors (28), or 72 percent; paying taxes (159), or 53.7 percent; trading across borders (179), or 29.2 percent; enforcing contracts (73), or 61.5 percent and resolving insolvency (148), or 30.6 percent.
In 2018/19, these countries implemented one-fifth of all the reforms recorded worldwide.