BUSINESS SOLUTION FOR SMALL BUSINESS OWNERS
UNLOCK GROWTH AND COMPLIANCE FOR YOUR NIGERIAN SME WITH PRACTICAL GUIDANCE
Hello business owners,
Welcome to US & CO., a chartered accounting firm in Lagos, Nigeria. We understand the effort required to build a business. You know your trade; managing taxes, regulations and compliance can be time-consuming and complex. Many Nigerian SMEs face penalties, missed opportunities and avoidable costs because tax and regulatory matters are not handled promptly or correctly.
This article explains how sound compliance practices can reduce risk and support business growth.
The Cost of Informal or Inadequate Tax Handling
How businesses manage their finances often affects their ability to grow. Informal or incorrect tax handling can cause financial strain and operational setbacks.
Multiple or Double Taxation: Without expert advice, businesses may be subject to taxes they could have avoided or taxed on the same income more than once.
Penalties and Fines: Errors, omissions or late filings can attract penalties and interest that reduce working capital.
Missed Contracts and Opportunities: Certain tenders and corporate contracts require valid tax documentation such as a Tax Clearance Certificate (TCC). Without required documentation, businesses may be unable to bid for opportunities.
Bringing your tax and compliance processes up to required standards can reduce exposure and improve access to contracts and finance.
Our Services — How US & CO. Can Help
US & CO. (Chartered Accountants) provides a range of services to support the financial and regulatory needs of SMEs. We act as an outsourced back-office resource so you can focus on running your business.
Financial Reporting:
- Preparation of financial statements to provide clear insights into business performance.
Tax Compliance:
- Preparation and filing of taxes, including Company Income Tax and Value Added Tax (VAT), in accordance with applicable rules and deadlines.
Tax Clearance Certificates:
- Assistance with the process to obtain a Tax Clearance Certificate when required.
Company Formation and Registrations:
- Upgrade from a business name to a limited liability company, if appropriate, to clarify liability and support business credibility.
- Full company registration and liaison with relevant bodies. As a CAC-accredited agent in Lagos, we assist with registrations and filings with:
- Corporate Affairs Commission (CAC)
- Federal Inland Revenue Service (FIRS)
- Budget and Planning Office of the Presidency (BPP)
- National Social Insurance Trust Fund (NSITF)
- Industrial Training Fund (ITF)
- National Pension Commission (PENCOM)
- Special Control Unit against Money Laundering (SCUML)
- Nigerian Export Promotion Council (NEPC)
- Department of Petroleum Resources (DPR)
- Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
- PAYE and related payroll tax registrations.
The outcome: consolidated support for financial reporting, tax compliance and relevant registrations within one firm.
Understanding Nigeria’s New Tax Reform Bill
A recent tax reform bill introduces changes affecting VAT, incentives for small businesses, taxation of the digital economy and tax residency rules. These changes present potential benefits for qualifying SMEs, but also new compliance requirements.
Potential Benefits:
- Possible changes such as a higher VAT threshold or adjusted tax rates for small companies could reduce tax burden for eligible businesses.
Potential Risks:
- Misinterpretation or incorrect application of the new rules can lead to non-compliance and retrospective liabilities.
US & CO. can review the law, assess its impact on your business, and recommend practical steps to align with the new requirements.
Local Support Across Lagos
Seeking professional tax advice in Lagos can help you manage compliance and reduce risk. US & CO. provides services to businesses across Lagos, including Amuwo Odofin, Lekki, Alimosho, Surulere, Ikeja, Ipaja, Oshodi, Shomolu, Lagos Island, Victoria Island, Ikoyi, Ilupeju, Ojo, Festac Town, Ago Palace, Okota, Ojualepa, Ojota, Apapa, Yaba and surrounding areas.
Common Penalties for Late Filings
Be aware of some penalties that may apply for late filings:
- Company Income Tax late filing: ₦25,000 for the first month and ₦5,000 for each subsequent month.
- VAT late filing: ₦5,000 per month of default.
- PAYE (Withholding Tax) late filing: penalty of 10% of the tax due and/or interest at the prevailing monetary policy rate.
These penalties can affect cash flow; timely compliance helps manage this exposure.
Contact US & CO.
If you would like assistance with financial reporting, tax compliance, company registration or understanding the new tax law, contact US & CO. (Chartered Accountants):
Website: www.usc.com.ng Email: info@usc.com.ng Email: usandco1000@gmail.com WhatsApp/Call: 08056219998
Social: Facebook: https://web.facebook.com/USandCO1000 X (Twitter): https://x.com/usandco1000 YouTube: https://www.youtube.com/@USandCO1000 Instagram: https://www.instagram.com/usandco1000/
Frequently Asked Questions (FAQ)
- Why is a Tax Clearance Certificate (TCC) important for my small business? The TCC demonstrates that tax obligations have been met. It is often required for bidding on government contracts, accessing some loans and other business transactions.
- What is the difference between registering a Business Name and a Limited Liability Company (LTD)? A Business Name is simpler and usually less expensive but does not provide limited liability protection. An LTD limits owner liability to the amount invested in shares and may be viewed more favourably by banks and investors.
- How can the new tax reform bill benefit my small business? The bill may change thresholds or rates that affect small businesses. We can assess whether your business qualifies for any new reliefs or requirements and advise on appropriate steps.
- How long does CAC registration typically take with US & CO.? Processing times vary. Where all required information is provided promptly, incorporation with CAC commonly completes in approximately 10–15 working days, although this can vary depending on external factors.
- Do you serve Festac Town? Yes. We provide services across the Lagos mainland and island, including Festac Town and other areas listed above.
