HOW TO GET THE REQUIRED LICENSES AND PERMITS FOR YOUR BUSINESS
May 17, 2019
Hello guys. Trust we had a splendid and productive week. Today, I will enlighten you on how you can get the required licenses and permits suitable for your business.
Firstly, you have to understand that different businesses has different requirements, therefore, it is advisable to get all licenses and permits required for your brand to legally operate in a certain place within the country.
How do you get the licenses and permits for your business?
Investigate all the possible licensing requirements based on your business location
Investigate on all licenses and permits requirements needed for your industry to operate
Ensure that you do not consider expenses and time consumption that comes with the process of getting the appropriate license suitable for your business
Proceed to the local government, state or federal government to file, make payment or otherwise, for proper documentation and issuing of the required license and permit.
What are the basic types of licenses and permits requirement that affects most business and might be required for your kind of business?
Basic Business Operation License
Federal Employer Identification Number (EIN)
State Identification Number
Fictitious Business Name Registration
Home Occupation Permit
Zoning and Land Use Permits.
Health Department Permit
Sales Tax License/Sellers Permit
Alarm permits etc.
What are the types of taxes that are required from Entrepreneur?
Below are the different taxes every Nigerian entrepreneur should be aware of:
Companies income tax: It is an annual tax on the profits of registered companies
Capital gains tax: This is a 10% tax imposed on Capital gains arising from a sale, exchange or other disposition of properties known as chargeable assets.
Education tax: It’s a chargeable tax on all companies registered in Nigeria at chargeable profits as contribution to the Education Tax Fund. The tax is charged at 2% of assessable profit
Value added tax: It is a tax imposed on the supply of goods and services. This is a tax payable by the consumer at 5%.
Personal income tax: This is relevant to your business because one of the obligation of companies, is to collect what is known as Pay as You Earn (PAYE) from your employees’ salaries.
Withholding tax: This is an advanced payment of income tax deducted at source of specific transactions.
As the regulations varies, it’s important to understand the licensing rules, permits and taxes for your business because, failure to comply can lead to serious consequences.
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