Section 13 Nigeria Startup Act

Section 13 Nigeria Startup Act 2022 is about Eligibility for grant of a startup label. It is under Part IV (Startup Labelling Process) of the Act.

(1) A startup label under this Act is a certificate issued by the Secretariat to a startup upon the fulfilment of the labelling requirements under this Act.

(2) A startup is eligible for labeling under this Act, where —
(a) it is registered as a limited liability company under the Companies and Allied Matters Act, and has been in existence for a period not more than 10 years from the date of incorporation ;
(b) its objects are innovation, development, production, improvement, and commercialisation of a digital technology innovative product or process ;

(c) it is a holder or repository of a product or process of digital technology, or the owner or author of a registered software ;
(d) it has at least one-third local shareholding held by one or more Nigerians as founder or co-founder of the startup ; and
(e) in the case of a sole proprietorship or partnership, it satisfies the conditions set out in in paragraphs (b), (c) and (d).

(3) This Act shall not apply to an organisation which is a holding company or subsidiary of an existing company which is not registered as a startup.

(4) A sole proprietorship or partnership referred to in subsection (2)(e) shall be granted a pre-label status for a period of six months to enable the sole proprietorship or partnership comply with the requirements set out in subsection (2) (a), (b), (c) and (d).

(5) A sole proprietorship or partnership which fails to comply with the provisions of subsection (4) shall lose the pre-label status granted to it.

(6) A labelled startup shall be granted access to the incentives provided under this Act.