Tag: PENCOM Certificate

FIVE (5) REASONS WHY NIGERIAN BUSINESS OWNERS NEED TO HAVE COMPLIANCE CERTIFICATES

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Compliance certificates are documents that show that a business is operating in accordance with the laws, regulations and standards set by the relevant authorities. In Nigeria, businesses are required to obtain a number of compliance certificates to demonstrate their compliance with the country’s laws and regulations this includes, a Tax Clearance Certificate (TCC) issued by the Federal Inland Revenue Service (FIRS), ITF Certificate issued by the Industrial Training Fund, NSITF Compliance Certificate issued by The Nigeria Social Insurance Trust Fund, PENCOM Certificate issued by The Pension Commission and Acknowledgement copies of payment of Annual Returns.

Here are five reasons why business owners need to have compliance certificates:

1. LEGAL COMPLIANCE: By obtaining compliance certificates, businesses demonstrate that they are operating within the law and that they are adhering to the standards and regulations set by the relevant authorities. This helps to reduce the risk of legal penalties and fines that may arise from non-compliance.

2. IMPROVED REPUTATION: Having compliance certificates can also help to enhance the reputation of a business. Customers and other stakeholders are more likely to trust a business that is in compliance with the law, which can translate into increased sales and a better bottom line.

3. ENHANCED COMPETITIVENESS: Obtaining compliance certificates can also give businesses a competitive edge over their competitors. By demonstrating their commitment to operating within the law and adhering to industry standards, businesses can differentiate themselves from those who are not in compliance.

4. ACCESS TO OPPORTUNITIES: Many businesses are required to have compliance certificates to participate in certain tenders or to enter into partnerships with other organizations. This means that by obtaining compliance certificates, businesses can gain access to new opportunities and markets that may not be available to those who are not in compliance.

5. PEACE OF MIND: Finally, having compliance certificates can provide peace of mind to business owners, as they know that they are operating within the law and that they are meeting the standards and regulations set by the relevant authorities. This can help to reduce the stress and anxiety that can arise from uncertainty and help business owners to focus on growing their businesses.

In conclusion, compliance certificates are an important part of doing business in Nigeria and can provide a number of benefits to business owners. By demonstrating their commitment to operating within the law and adhering to industry standards, businesses can reduce the risk of legal penalties, improve their reputation, enhance their competitiveness, gain access to new opportunities, and provide peace of mind to their owners.

Regville Associates offers end-to-end legal, tax and secretarial service for companies. We assist Companies in becoming and staying compliant.

We will be happy to hear from you.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

ESSENTIAL COMPLIANCE CERTIFICATES AND REQUIREMENTS FOR BIDDING ON CONTRACTS IN NIGERIA

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In the competitive world of business, securing contracts is crucial for growth and success. In Nigeria, there are several compliance certificates and requirements that companies must fulfill in order to be eligible to bid on contracts. From tax clearance and pension compliance to BPP registration and audited financial statements, these requirements help to demonstrate a company’s financial stability, credibility, and commitment to following regulations. In this article, we will explore the essential compliance certificates and requirements for bidding on contracts in Nigeria.

1. TAX CLEARANCE CERTIFICATE: This certificate confirms that a business is up-to-date with its tax obligations and is in good standing with the Federal Inland Revenue Service (FIRS).

2. PENSION COMPLIANCE CERTIFICATE: This certificate confirms that a business is compliant with the Nigerian Pension Reform Act and is making the required pension contributions for its employees.

3. NIGERIAN SOCIAL INSURANCE TRUST FUND (NSITF) COMPLIANCE CERTIFICATE: This certificate confirms that a business is compliant with the NSITF Act and is making the required social insurance contributions for its employees.

4. INDUSTRIAL TRAINING FUND (ITF) COMPLIANCE CERTIFICATE: This certificate confirms that a business is compliant with the ITF Act and is making the required training contributions for its employees.

5. BPP (BUREAU OF PUBLIC PROCUREMENT) CERTIFICATE: This certificate confirms that a business is registered with the Bureau of Public Procurement and is in compliance with the procurement laws and regulations in Nigeria.

In addition to the above-mentioned compliance certificates, it is also important for business owners in Nigeria to file their CAC Annual Returns and have an audited financial statement.

CAC Annual Returns are a requirement of the Corporate Affairs Commission (CAC) and are necessary to keep a company’s registration up-to-date and in good standing. Failure to file annual returns may result in penalties or the eventual striking off of the company’s name from the CAC register.

An audited financial statement is an independently reviewed and verified financial report that provides assurance to stakeholders about the accuracy and reliability of a company’s financial information. This is particularly important for businesses bidding for contracts, as it demonstrates their financial stability and capacity to fulfill their obligations. An audited financial statement can also help to attract investment and improve a company’s credibility.

Regville Associates offers end-to-end legal, tax and secretarial service for companies. We assist Companies in obtaining relevant compliance documents needed to bid for any tenders and contracts in Nigeria.

We will be happy to hear from you. 

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

HOW TO OBTAIN A PENCOM COMPLIANCE CERTIFICATE IN NIGERIA

The National Pension Commission (PenCom) is the regulatory body overseeing Nigeria’s pension administration. To ensure that companies operating in the country adhere to best practices in pension management, PenCom requires all employers to apply for and obtain a Compliance Certificate. This article will discuss the steps companies can follow to apply for a PenCom Compliance Certificate.

1. REGISTER WITH PENCOM: The first step in the process is to register with PenCom by filling out the Employer Registration Form (ERF) and submitting it to the nearest PenCom office. The form can be obtained from the PenCom website or any of its offices.

2. OPEN A PENSION FUND ADMINISTRATOR (PFA) ACCOUNT: After registering with PenCom, the next step is to open a Pension Fund Administrator (PFA) account. PFAs are organizations that manage pension funds on behalf of employers. A list of registered PFAs can be found on the PenCom website.

3. SUBMIT EMPLOYEE INFORMATION: Companies are required to submit employee information, including names, addresses, and contribution history, to their PFA. This information is necessary for the PFA to compute each employee’s pension contributions and benefits.

4. REMIT CONTRIBUTIONS: Companies are required to remit employee contributions to their PFA on a monthly basis (minimum of 10% by employer and minimum of 8% by the employee).

(a) for the last three fiscal years for organizations that were in existence for that period and have five (5) or more staff

(b) for organizations that have not been in existence for the last three fiscal years, from the date of Incorporation/registration/licensing to the last fiscal year.

5. GROUP LIFE INSURANCE: Evidence of valid Group Life Insurance Policy for employees which should include amongst others, a certificate of group life, policy document and evidence of payment.

6. APPLY FOR A COMPLIANCE CERTIFICATE: Upon successful submission of all required reports and documentation, companies will be issued a PenCom Compliance Certificate. This certificate is valid for one year and must be renewed annually.

Applicants are to note that it takes 15 working days from the date of receipt for an application to be processed. Certificates or rejections can be picked up at the offices where the applications were submitted.

In conclusion, PENCOM mandates that pension remittance should be made not later than seven (7) days after payment of salaries. PENCOM has begun the introduction of penalties payable by the employer to the employee RSA if remittance is not made within seven (7) days after payment of salaries. The PENCOM has also engaged Consulting Firms (majorly audit & accounting firms) to carry out audit exercises to check compliances.

For further assistance in obtaining PENCOM Certificate, feel free to contact us

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667