How to Register Your Business with CAC in Nigeria
What is Corporate Affairs Commission and What Does it Do?
A government organization in Nigeria called the Corporate Affairs Commission (CAC) is in charge of registering and overseeing firms and corporations there. It was founded in 1990 in accordance with the Companies and Allied Matters Act (CAMA), and its main office is in Abuja, the Nigerian capital.
By verifying that companies are registered and conducting their operations in conformity with the law, the CAC plays a crucial role in the commercial environment of the nation. It also keeps a database of all companies that have registered, which contains details such as the company name, legal status, directors, and shareholders.
Some of the key functions of the CAC include:
- Registering businesses and companies
- Issuing certificates of incorporation
- Maintaining a register of companies and businesses
- Issuing business name certificates
- Approving changes to company documents and records
- Providing information on the legal status of businesses
- Providing guidance and assistance to businesses in compliance with the Companies and Allied Matters Act
- Conducting investigations into the affairs of companies
- Striking off companies from the register for non-compliance or fraud.
How to choose a business name on Corporate Affairs Commission website.
To choose a business name on the Corporate Affairs Commission (CAC) website, follow these steps:
- Go to the CAC website at https://new.cac.gov.ng/.
- Click on the “Business Name” tab in the menu at the top of the page.
- Click on the “Search Business Name” button.
- Enter the business name you are considering in the search field and click “Search”.
- The search results will show you if the business name is available or already registered. If it is available, you can proceed to the next step. If it is already registered, you will need to choose a different business name.
- Click on the “Reserve a Business Name” button.
- Fill out the form with the required information, including your full name, contact details, and the proposed business name.
- Review the terms and conditions and click “Accept” to proceed.
- Click on the “Make Payment” button to pay the required fee for reserving the business name.
- After payment, you will receive a notification that your business name has been reserved for a period of 90 days. During this time, you can proceed with the registration of your business.
Note: If you are unable to reserve the business name online, you can also visit a CAC office in person and speak with a representative to reserve the name.
Also Read: The Complete Guide to social meida Marketing and Sales
Watch the video for easy understanding.
Understanding the Requirements for CAC Registration.
You must fulfill certain conditions and produce specific documentation in order to register your firm with the Corporate Affairs Commission (CAC) of Nigeria. Depending on the sort of business you are registering, different procedures and paperwork are required (e.g. sole proprietorship, partnership, or limited liability company). The following are some standard prerequisites for CAC registration:
- Choose a business name: You must choose a unique business name that is not already registered with the CAC. You can check the availability of a business name on the CAC website or by visiting a CAC office in person.
- Obtain a Business Premises Permit: Depending on the location of your business, you may need to obtain a Business Premises Permit from the local government authority. This permit ensures that your business is operating in a legal and approved location.
- Register with the appropriate tax authority: You must register your business with the appropriate tax authority in Nigeria (e.g. Federal Inland Revenue Service or State Internal Revenue Service). This will allow you to pay taxes and meet your tax obligations as a business.
- Provide required documents: You must provide certain documents to the CAC when registering your business, including a completed application form, proof of identity (e.g. national ID card or passport), and proof of address (e.g. utility bill).
- Pay the required fees: There are fees associated with CAC registration, which vary depending on the type of business you are registering. You must pay these fees at the time of registration.
It is important to carefully review the requirements and documents needed for CAC registration to ensure that you have everything you need to complete the process successfully. You may also want to seek legal or professional guidance to ensure that you are complying with all laws and regulations.
How Long it Will Take to Get Approved.
The length of time it takes for the Corporate Affairs Commission (CAC) in Nigeria to approve your registration will vary depending on a number of variables, including the type of business you are registering, the completeness and accuracy of your application and supporting documentation, and the workload of the CAC at the time of your submission.
Depending on your company’s complexity and the CAC staff’s availability to assess your application, the process of registering a business with the CAC can typically take several weeks or even months. There are several actions you can take to hasten the process, though:
- Complete your application and documents accurately and thoroughly: Make sure that you provide all the necessary information and documents as required by the CAC. This will help reduce the risk of errors or delays in the process.
- Pay the required fees: Be sure to pay all the required fees at the time of submission. This will ensure that your application is not held up due to unpaid fees.
- Follow up with the CAC: If you have not received a response from the CAC within a reasonable time, you may want to consider following up with them to inquire about the status of your application.
It is important to be patient and understanding of the CAC’s process as it can take time to review and approve applications. However, if you are experiencing excessive delays or have concerns about the process, you can reach out to the CAC for assistance or clarification.
Conclusion: The Benefits of Registering Your Business with CAC.
Registering your business with the Corporate Affairs Commission (CAC) in Nigeria has several benefits that can help your business succeed and grow. Some of the key benefits of CAC registration include:
- Legal protection: By registering your business with the CAC, you are complying with the law and protecting your business from potential legal issues. This is especially important if you are operating as a limited liability company or partnership, as it can provide protection for your personal assets in the event of a legal dispute or financial problems.
- Increased credibility: Having a registered business with the CAC can increase the credibility of your business and make it more attractive to potential customers, partners, and investors.
- Ease of obtaining financing: If you are seeking financing for your business, having a registered business with the CAC may make it easier to obtain loans or investments from financial institutions or investors.
- Ability to enforce contracts: As a registered business, you have the legal right to enter into contracts and enforce them if necessary. This can be particularly important if you are dealing with customers or suppliers who may not be reliable.
Overall, registering your business with the CAC is an important step in establishing a legal and reputable business in Nigeria. It can provide legal protection, increased credibility, and a range of other benefits that can help your business succeed and grow.