Having a Tax Identification Number is compulsory for all businesses in Nigeria. It is a legal requirement to have a TIN number if you want to open a business bank account. If you are a business owner who wants to learn how to get TIN in Nigeria for your limited liability company or a sole proprietorship (business name), we’ve created this guide for you.
After reading this guide, you will learn about a Tax Identification Number, how to register for TIN whether you run an LLC or sole proprietorship, how to verify your TIN and also how you can get your TIN easily on the Prospa app.
- What is a Tax identification number?
- Why you need a tax identification number
- How to get a TIN for your business
- Steps to apply for TIN for a sole proprietorship (business name)
- Steps to apply for TIN for a Limited Liability company
- How to get your TIN easily on Prospa
What is a Tax identification number?
The Taxpayer Identification Number (TIN) is a unique number that identifies you or your business for the purposes of paying taxes. In a bid to make it easier for Nigerian freelancers and businesses to register for TIN we’ve written this guide.
Why do you need a TIN?
As an entrepreneur with plans to build a prosperous business, it’s important to make sure all your legal responsibilities are met. Just as the BVN, Voter’s ID and National ID are used to grant you access to some government services, not having a TIN can curtail you in growing a business.
In accordance with Section 10, subsection 2 of CIT Acts, as amended in the 2019 Finance Acts, Nigerian banks must obtain Tax Identification Numbers (TIN) from both individual and corporate entities before opening accounts. You can’t access business loans from banks or government institutions.
How to get a TIN in Nigeria for your business
The first step to getting a TIN in number is to register your business with the Corporate Affairs Commission (CAC). Business registrations used to require going to CAC offices or working with agents, but you can now do it online. If you want to register your business fast and have a business bank account automatically opened for you once your business registration is complete then using the Prospa app for your CAC business name registration is the best option for you.
You can register your business, get your TIN and open a business current account on the app. To get started, tap on the image below:
How to register for TIN as a business owner in Nigeria
To make tax payments easier in Nigeria, the government has created systems that can automate the process. In 2020, the CAC announced that tax identification numbers will now be listed on CAC certificates for incorporated companies. So, if you registered your limited liability company in 2020, your TIN is listed at the bottom of your CAC certificate.
However, if you registered your company before 2020 and have not applied for a TAX registration number, you can either go to a FIRS office near you or apply online through the Joint Tax Board. To apply online, go to https://tin.jtb.gov.ng/TinRequestExternal
Sole proprietors; those who only registered their business names, do not get a tax identification number on their certificates. As a result, you will need to go to a tax office or use the same link to apply through the Joint Tax Board
Requirements to apply for a TIN in Nigeria
To apply for a TIN at a FIRS office or online, here are details you need to have with you
For sole proprietors (a self-employed person with a registered business name)
- A completed TIN Application Form
- Application letter
- Business Name Registration Certificate
- Utility bill
For Incorporated companies:
- Duly completed TIN Application Form
- Memorandum & Articles of Association (MEMART)
- Certificate of Incorporation
- Particulars of the Company Directors
- Statement of Share Capital
- Utility bill
How To Verify Your TIN
To verify that your TIN is accurate, go to https://apps.firs.gov.ng/tinverification/
- Select a search criteria (your TIN, BVN or registered phone number)
- Fill in the search value you’ve selected
- Fill in the correct captcha image text and click on the search button
Frequently Asked Questions on Tax Identification Number
Is the TIN number free in Nigeria?
Yes, applying for your TIN in Nigeria is free.
Is the Joint Tax Board (JTB) Tin different from the FIRS TIN?
No. The Joint Tax Board was created to unify the taxpayer system. It created an easier way to apply for taxes and also eliminates the need to have multiple IDs for tax payments.
Do I need a TIN to open a business account?
It is mandatory to have a TIN before you can open a business account in Nigeria.
How can I get a TIN number online?
You can apply for a TIN through Prospa or go to https://tin.jtb.gov.ng/TinRequestExternal
Your Tax Identification Number identifies you as a legal business in Nigeria. You can apply for it online through the Joint Tax Board. However, if you are looking for a quick and easy service to set up your business accounting, sign up on Prospa to register your business, get a TIN and open a business current account in minutes.
Learn more on how to register your business, get your TIN and open a business account in minutes.