Nigeria: New corporate law allows for tax transparency at LLP level

Nigeria: Law allows for tax transparency at LLP level

Newly enacted corporate law—the Companies and Allied Matters Act, 1990 (CAP C20, LFN 2004)—aims to provide efficiency with regard to the registration and regulation of corporate entities.


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One provision under the new law allows for incorporation status for partnerships registered as limited liability partnerships (LLPs). For administrative purposes, LLPs are required to have at least two designated partners as compliance officers, and the LLP partners and the LLP itself have separate legal personalities. Thus, LLPs are intended to be able to have the benefits of both companies and partnerships—including tax transparency at the LLP level. This treatment is similar to that in the UK and United States, where LLPs have corporate personality and retain a tax pass-through status.

Read an August 2020 report prepared by the KPMG member firm in Nigeria

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