• Tuesday, May 21, 2024
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How to know if your startup qualifies for seed funding, tax perks from FG

How to know if your startup qualifies for seed funding, tax perks from FG

The Federal Government has commenced the registration of Nigerian owned startups.

The registration will be on a portal, which is part of the Nigeria Startup Act (NSA 2022), which aims to foster the growth of startups and tech talents in the country.

According to the National Information Technology Development Agency (NITDA), the portal already has 12,948 startups, 912 Venture Capital firms, 1,735 angel investors, and 925 accelerators, incubators, and hubs registered.

Startups on the portal will become eligible for statutory incentives, resources, and opportunities, NITDA noted. Registering on the portal will enable startups to a label. However, not all startups will benefit from this measure. Here is how to know if you can register your startup on the NSA portal:

1. You must be a limited liability company registered under the Companies and Allied Matters Act (CAMA).

2. Be a company existing for less than 10 years from the date of incorporation.

3. Have objects focused on innovation, development, production, improvement, and commercialisation of a digital technology innovative product or process.

4. Be a holder or repository of a product or process of digital technology or the owner or author of a registered software.

5. Have at least one-third of local shareholding held by one or more Nigerians as founder or co-founder of the startup.

6. Satisfy the conditions set out in the Act, in the case of a sole proprietorship or partnership; and

7. Be a tech-enabled business that uses existing tools, platforms, libraries, and frameworks to make a company or a solution more efficient or effective.

To get the Startup Label, a qualified startup company must fill out the registration form on the Startups Portal and upload the prescribed documents.

Once a startup becomes labelled, it has access to the startup investment seed fund of N10 billion, grants, loans, etc., tools and resources, tax and fiscal incentives, capacity building programs and trainings, participation in regulatory sandboxes, ecosystem engagement and support infrastructure, and collaborations and linkages with relevant MDAs.

Dr ‘Bosun Tijani, minister of Communications, Innovation and Digital Economy, highlighted that the platform will also facilitate a consultative forum where issues affecting startups can be discussed and properly defined for action by government and other stakeholders.

In November 2023, the Federal Government announced the launch of the Startup Support and Engagement Portal, which is meant to drive the identification and aggregation of startups in the country.