Lekki Free Trade Zone
Lekki Free Trade Zone is one of the fastest growing free zones among the world, according to a report by the World Bank.
The Lekki Free Trade Zone stands as a testament to international collaboration, showcasing how the governments of Nigeria and China have joined forces to drive mutual development. This vital zone not only promotes economic growth in both countries but also highlights the power of partnership in creating transformative opportunities.
According to the Lekki free zone master plan, it covers about 165 square km of the eastern part of Lekki, Nigeria. It is divided into three parts: the residential district in the north, the industrial district in the centre, and the commercial, trading, and logistics district in the southeast. The Chinese Ministry of Commerce officially established the LFTZ in 2007 and designated it as the “Overseas Economic and Trade Co-operation Zone.”
Currently, developers will transform 30 square kilometres of this free zone in four phases, focusing on four major sectors of investment. Once developed, the first sector will represent commercial services and will comprise markets, amusement parks, hotels, cultural centres, golf courses, hospitals and schools. The other three sectors would be a general development area. The government will create an industrial park in the southwest and logistics and warehousing areas in the southeast. The first phase will be home to manufacturing, warehousing, and logistics industries, as well as commercial and trading investors.
The final aim is to transform the Lekki Free Trade Zone into a modern-day multi-functional township. It would comprise proper infrastructure for commercial purposes as well as residential purposes. This would be done by turning Lekki Free Zone into a satellite city of Lagos. This city will be suitable both for trading and setting up industries as well as appropriate for taking up residence.
Why Should You Incorporate Your Company in Lekki Free Trade Zone?
The following are the reasons for establishing your company in the Lekki Free Zone:
Support from both the Nigerian and Chinese Governments
The Lekki free trade zone is the result of the help of the governments of both China and Nigeria. Since 2006, leaders and officials of both countries have expressed their support for establishing LFTZ, and the Lekki free zone has been visited quite a few times by the officials of both countries. Both governments are mutually supportive of each other and working towards the development of LFTZ.
Proper Infrastructure
The Lekki Free Zone features state-of-the-art infrastructure and provides all the supporting services a business needs. The free zone is very close to the city of Lagos and only 10km from the newly developed Lekki International Airport. The Lekki Free Trade Zone is well-connected to all the major cities via roadways, railways, airways, and waterways. It has a power plant and abundant water supply, which also backs LFTZ, along with unbeatable telecommunication.
Development of a One-Stop Service Centre
The development of a one-stop service centre has significantly decreased the time taken by the various procedures for setting up a business. Due to the availability of onsite processing of taxes and levies, the companies are able to commence their business activities promptly.
Secure Business Environment
The Lekki Free Trade Zone has its security teams, which comprise trained and well-equipped security personnel. The management also has a security fence in place that runs all around the free zone, which helps create a sealed and secure business environment. The Lekki Free Zone also has armed policemen, whom the Nigerian government has sent.
Attracting Foreign Investors
Due to benefits like secured business proceedings, connectivity, and numerous others, the Lekki free trade zone has become one of the biggest hotspots for entrepreneurs and investors.
Quick Approvals and Permits
LFTZ is known for granting companies speedy authorizations. This helps companies significantly reduce the time that is taken to complete the incorporation process.
100% Foreign Ownership
The laws of Nigeria do not apply to the companies established in the Lekki free trade zone. According to the law, 100% foreign ownership is not permitted anywhere in the country except within the free zones. Foreigners can also fully repatriate all earned profits and dividends.
Prohibition of Strikes and Lockouts
By providing no strikes or lockouts within 10 years of incorporation, LFTZ ensures that there are no hindrances in the company's working.
Procedure for Investing in Lekki Free Trade Zone
To invest in the Lekki Free Zone, you must take the following steps:
Initial requirement
The applicant must submit a written application to the Lekki Free Zone Development Company. After the submission of the application, the applicant will receive a “Memorandum of Understanding”, which needs to be signed.
Registration of the company
All the applicants and investors need to complete and submit application forms along with the other supporting documents. Applicants must pay a non-refundable registration fee, determined based on their investment industry. The LFTZ will issue a “Provisional Approval Letter” and later the “Operating License” to the applicant.
Execution of the Investment Agreement and issuance of land sublease certificate
The applicant must have the investment agreement and other necessary documents public-notarized before submission. Upon payment of the land lease fee, LFZDC issues the investor a Land Sub-Lease Certificate.
Development and Construction of the Investment Project
The investor must submit the construction plan and design scheme to the authorities within six months from the issuance date of the Land Sub-Lease Certificate. LFZDC reviews the submitted documents and provides a Letter of Approval for the construction plan and design scheme. The construction of the project must begin within twelve months from the issuance date of the Letter of Approval. Inspectors conduct an onsite inspection before installing all equipment. If everything is found suitable, they grant the required approval. Finally, the investor must apply for a permit to commence production.
By following the process mentioned above, you can easily incorporate your business in the Lekki free trade zone. Always keep in mind that even the slightest mistake during company incorporation can lead to severe consequences for your business. For this reason, you should consider getting help from a consultancy firm like Business Setup Worldwide.
Business Setup Worldwide offers comprehensive solutions for all your business problems. Our team of seasoned professionals will provide you with expert advice tailored specifically to your needs. If you're looking to establish your business in the Lekki free zone, we’re here to guide you every step of the way. Contact us today for personalized support and ensure a seamless setup for your company.
