Ogun Guangdong Free Trade Zone

In 2006, leaders at the China-Africa Summit Forum in Beijing decided to establish several free trade zones in both China and Africa. The main motive behind establishing these zones in Nigeria was to boost the country's economy and strengthen trade relations between Africa and China. The Ogun Guangdong Free Trade Zone (OGFTZ) is one of the best examples of trade zones that has not only helped the economy but also played a pivotal role in enhancing trade relationships with other jurisdictions.

About Ogun Guangdong Free Trade Zone

The Ogun Guangdong Free Trade Zone sits in the city of Igbesa, within Ogun State, Nigeria. The construction of the free zone started in 2008, and a joint venture called China African Investment Company (CAIC) and the Ogun State Government took over the project. The Nigeria Export Processing Zone Authority (NEPZA) approved this joint venture in mid-2008.

The total planned area that the Ogun Free Trade Zone Covers is close to 10,000 hectares, and it also has a lease on the land for 99 years. Since the free zone is a product of a joint venture, the China African Investment Company has a controlling stake in the management.

The primary focus of the free zone is on the manufacturing and processing industries. The major industries in the region are related to furniture manufacturing, which manufactures lightweight objects and ceramics. 

In the long run, the OGFTZ aims to expand into the engineering, marketing, and trading industries. As decided in the China- Africa Summit Forum, the free zone is trying to develop its real estate and R&D department. It also strives to provide services such as logistics, manufacturing, trading, financial assistance, etc.

The free zone employs more than 4000 people and has provided training to more than 30,000 individuals in the past 16 years. This zone has provided people with a platform to increase their skill level, and since the inception of the region, there has been a significant increase in the number of skilled workers.

Benefits of Setting up a Company in OGFTZ

The benefits of establishing a company in the Ogun Free Trade Zone are:

1. No Duty applicable on Import of Raw Materials

Since the establishment of this free zone, the authorities have exempted companies operating here from paying duties on the import of raw materials.

2. Faster Customs Processing

The import or export of goods requires the involvement of the customs department, which assists companies in processing their requests more efficiently, thereby reducing the time taken.

3. Exemption from Taxes

The companies established in the zone do not need to pay taxes. However, they are bound to adhere to the rules set by the free zone management.

4. 100% Foreign Ownership

Any foreign company can have 100% ownership and does not require any local sponsor. The authorities implemented this initiative to encourage international companies to establish their base of operations in the free zone.

5. No Requirement of Import or Export Licence

A company set up in the free zone has the liberty of importing or exporting goods without an import/export license.

6. One-stop shop for all the Licences

The free zone management has streamlined all its services and provides all the necessary documentation, certificates, and licenses in a single place.

7. Curbing Employment Strikes

The employees of the companies established in the free zone cannot go on strikes or hold lockouts for at least 10 years from the date of inception of the company.

Procedure to Set Up an Enterprise in OGFTZ

If you are interested in setting up a company in this free zone, follow these steps:

Step 1: The first step requires you to fill out the application form. You can either download it from the NEPZA portal or obtain it at the NEPZA office.

Step 2: Submit the application to the nearest NEPZA office along with the required documents.

Step 3: On the approval of the application, the management of the free zone will provide you with an operating license, which will allow the company to start building the required infrastructure.

Step 4: Once your infrastructure is ready, you can start your business operations.

Setting up a company in this free zone is a highly lucrative option for budding entrepreneurs. If you are looking for business advisors to assist you in incorporating your company, consider availing yourself of the services of Business Setup Worldwide. Our team of professionals offers customized solutions to address your business needs. To help navigate the process of company formation in the Ogun Free Trade Zone, contact us today– we’d be happy to help!