Are you driven by a profound passion for a specific cause, whether it’s a social project, a religious belief, a sport, community development, a professional calling, or simply a desire to help others? The legal framework in Nigeria provides a robust avenue for you to channel this passion and make a tangible difference through an Incorporated Trusteeship. This entity, commonly referred to as a Foundation or a Non-Governmental Organisation (NGO), as well as other charitable entities, offers a structured and legitimate platform for philanthropic endeavours.
It is paramount for anyone considering the role of a trustee to understand a fundamental principle: a foundation is established and operates on a non-profit basis. Trustees must not, under any circumstances, derive personal financial gain or profit from the activities of the foundation. This core tenet ensures that all resources are dedicated solely to the stated aims and objectives of the organisation.
While foundations enjoy certain tax advantages, it’s crucial to note that they are typically exempt from income tax. However, they are not entirely immune to all forms of taxation. Specifically, foundations may still be subject to Value Added Tax (VAT) in certain situations, depending on the nature of their activities and transactions. Furthermore, regulatory compliance has evolved, and foundations are now formally recognised as taxable entities through the mandatory allocation of Tax Identification Numbers (TINs). This ensures proper oversight and integration into the national tax system.
The establishment of a foundation is built upon a foundation of voluntary consent. All individuals who become members of the organisation must willingly agree to join. A key requirement for registration is demonstrating unequivocally that the foundation or NGO is genuinely not intended for profit-making. This demonstration is vital for obtaining and maintaining its charitable status. Additionally, to combat financial illicit activities, all foundations are required to register with the Special Control Unit against Money Laundering (SCUML). This registration is a critical step in ensuring transparency and accountability within the non-profit sector.
“Foundations are built on trust.”
Proposed Names
You must provide two proposed names for the organization, listed in order of preference. These names must be distinctly unique and not easily confused with existing entities. We strongly advise combining different elements or concepts to formulate a preferred name that is both memorable and peculiar.
Contact Information
A comprehensive physical address, a reliable telephone number, and a dedicated email address for the organization are mandatory. These will serve as official points of contact for all regulatory and operational communications.
AIMS AND OBJECTIVES
The “Aims and Objectives” section is the cornerstone of your foundation’s identity. This crucial part of the registration process requires you to articulate the fundamental reasons behind the establishment of your organisation. It is imperative that the objectives and aims you formulate are in perfect alignment with the core purpose for which you are setting up the entity. These statements will guide all future activities and serve as a benchmark for evaluating the foundation’s impact.
TRUSTEES’ DETAILS
The individuals who will serve as trustees are central to the foundation’s governance and operations. For each proposed trustee, the following detailed information is required:
Personal Identification
Full legal name(s), nationality, physical residential address, gender, email address, telephone number, and date of birth.
Valid Means of Identification
A valid means of identification [International Passport, Permanent Voters’ Card, National Identity Card, or Driver’s License] is required.
Name Change
If a trustee has undergone a name change, an Affidavit or a Newspaper Publication confirming the change must be provided.
Passport Photographs
Two recent passport-sized photographs of each trustee are also required.
REGISTRATION PROCESS AND TIMELINE
The registration process for a foundation involves several critical stages, each with specific requirements and timelines:
- Name Reservation Application: Upon receipt of payment for the registration services, the initial step involves applying to reserve the chosen name(s) for your organisation. This ensures that the desired name is unique and available.
- Name Approval and Statutory Fees: Once the proposed name is approved by the Corporate Affairs Commission (CAC), we proceed with the official application for registration and the payment of all mandatory statutory fees.
- Document Preparation and Signatures: The necessary registration documents are then prepared and sent to your designated contact person. This individual will be responsible for obtaining the signatures of all trustees and collecting their passport photographs.
- Newspaper Advertisement for Objections: A crucial part of the process involves publishing an advertisement in two separate national newspapers. This advertisement serves to notify the public of the proposed registration and provides an opportunity for any legitimate objections to be raised. The statutory timeline for receiving objections is 28 days from the date of publication.
- Submission for Registration: Following the 28-day objection period, and assuming no valid objections are raised, all compiled forms and supporting documents are officially submitted to the Corporate Affairs Commission (CAC) for final registration.
- Certificate and Document Delivery: Upon successful registration and the issuance of the Certificate of Incorporation, along with all accompanying official documents, these will be delivered to your designated contact person. This package will also include the official company seal, a vital instrument for authenticating official documents.
- Tax Identification Number (TIN) Processing: If you have opted for and paid for the Tax Identification Number (TIN) service but have not yet received it via email, we will ensure that it is promptly processed and obtained from the appropriate tax office. This ensures your foundation is fully compliant with tax regulations from its inception.
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