Abdul Muhammed Law Practice
Abdul Muhammed Law Practice has has set forth the guidelines for registering a technical know-how agreements with NOTAP below.
Introduction
Technical know-how agreements are essential in the manufacturing sector to facilitate the exchange of skills, knowledge, and information for the production of goods. At NOTAP, these agreements are typically registered for an initial period of 3 years, which corresponds to the expected timeframe for the transferee to realize turnover or profit from the arrangement.
- Registration duration
Technical know-how agreements are initially registered for a period of 3 years.
Renewal may be sought subsequently for an additional 3-year term.
- Technology complexity
High-tech sectors such as petrochemicals, space, biotechnology, and complex engineering often attract higher technology fees.
- Eligibility requirements
The transferee must be actively engaged in manufacturing within Nigeria.
- Product specificity
The agreement must pertain to products manufactured within Nigeria.
- Finished products
Companies primarily involved in selling imported finished products are not eligible for registration of agreements in Nigeria.
- Physical presence
The transferee must demonstrate a physical presence with a factory in Nigeria.
- Fee Payment
Payment of requisite NOTAP fees, including presentation, registration, and penalties (if applicable), is mandatory.
- Detailed agreement
The technology transfer agreement must provide a sector-specific, detailed description of services to be rendered by both parties, avoiding generic language.
- Document submission
Submit two copies of the technology transfer agreement.
Include two copies of completed NOTAP forms (Questionnaire and Application forms).
Provide the Memorandum and Articles of Association of the company.
- Foreign company profile
Supply a profile of the foreign company involved in the agreement.
- Financial documentation
Include Tax Identification Number (TIN) and tax clearance certificates.
Submit audited accounts for the previous 3 years, demonstrating turnover and profit from locally manufactured goods covered by the agreement.
- Capital importation
If applicable, provide evidence of capital importations.
- Approval process
Companies seeking registration are subject to pre-approval and post-approval procedures by NOTAP.
- Site inspection
NOTAP may schedule a site visit to the company at its discretion.
- Renewal requirements
Renewal requires a validated agreement with modifications reflecting new technologies, developments, and expansion programs.
Provide evidence of full fee remittance (SWIFT document), tax clearance certificates for the last 3 years, and audited accounts for the last 3 years.
- Technology fee
The technology fee is calculated as a percentage of turnover, typically ranging from 0% to 5% of net sales, depending on the complexity of the technology.
These guidelines outline the essential steps and requirements for registering a technical know-how agreement with NOTAP, ensuring compliance with Nigerian regulations and facilitating technology transfer in the manufacturing sector.
READ: Registering trademark license agreement with NOTAP
