CAC Nigeria: One great advantage of having your company registered with the local, state, or federal government is to ensure your company name is not registered by someone else. What this means is that you must fulfill all the requirements, starting with registration.
Fortunately, the Corporate Affairs Commission (CAC) is here to help, read through this article to know the Benefits of Corporate Affairs Business Name Registration.
At the very beginning, one of the questions you have to ask yourself is: What kind of business am I running? Am I going for a registered business name or a limited liability company? Or a company limited by guarantee? Or an Incorporated Trustees?
Anyone can decide one day to start operating a business. All the person has to do is provide a product or service to another person in exchange for money or money’s worth to be “in business.”
It might seem insignificant at the time, especially when you are still quite taken with how awesome your idea is. However, choosing how your business is organized may be the wisest decision you can take at that early stage.
While registering your business with the ” Corporate Affairs Commission” (CAC) isn’t necessarily required to complete certain business transactions, it is a smart choice for new and existing entrepreneurs for a variety of reasons which includes:
What is CAC?
Corporate Affairs Commission (CAC) is an autonomous body charged with the responsibility to regulate the formation and management of companies in Nigeria.
CAC Functions
The functions of the Commission as set out in section 7 of the Companies and Allied Matters Act, includes the following:
- To administer the Act, including the regulation and supervision of the formation, incorporation, management and winding up of companies
- To establish and maintain companies registry and offices in all the states of the Federation suitably and adequately equipped to discharge its functions under the Act or any law in respect of which it is charged with the responsibility
- Arrange and conduct an investigation into the affairs of any company where the interests of the shareholders and the public so demand
- To undertake such other activities as are necessary or expedient for giving full effect to the provisions of the Act.
- The Commission also registers Business Names, and Incorporated Trustees as well as provides a wide range of ancillary services
How to Register Your Business with CAC
Usually, you can register your business either as a Business Name or a Limited Liability Company. The business name is registered by a sole proprietor and can be registered by either one person or two-person max.
To register as a limited liability company, you will need at least two directors and a Secretary. If you register as a business name, all liabilities of the business are on you.
On the other hand, if you register as a limited liability company, the business is seen as a separate entity from the owner. So, all liabilities of the company are borne by the company.
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Register Through CAC Online Portal
To register online, follow the steps below:
Visit
- Create an account
- Log in
- Do a public search of your preferred name
- Reserve your business name
- Follow other procedures as directed
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Get an Expert to Help You Register
Registering yourself can be difficult if you lack the experience. So, it is always best to engage the services of a professional. Most times, people get stuck when they get to a particular stage. To avoid that, you can engage the services of a professional.
Benefits of Corporate Affairs Business Name Registration
1. Hiring Employees
A registered business can employ full-time employees and pay them salaries and other benefits. You have the opportunity to seek interns especially from the National Youth Service Commission or Sure-p that will not cost you a lot in terms of paying salaries and incentives or even cost you nothing in the case of Sure-p.
2. Supplier Arrangements/Government Contracts
A registered business also makes you eligible to receive supplier discounts that you wouldn’t normally receive as an unregistered business entity.
Suppliers usually reserve special rates for business owners who can show official evidence of business name or company registration (certificate of incorporation) issued by the Corporate Affairs Commission (CAC).
Also, if your plan is to be getting government contracts for your company, business registration is one of the first requirements.
3. Business Trip to Other Country
Another great benefit of business registration is that you can easily obtain a visa and travel to any country for business purposes.
Every country always welcomes foreign investors who are interested in doing business in their country because such good investments will add value to their economy.
4. Opening Business Bank Accounts
You need to provide proof that your business is properly registered with the Corporate Affairs Commission (CAC) to open a business bank account in Nigeria.
A business bank account is an important asset to a small business because you can separate your personal activities from your business activities.
It is also more professional to give your clients/customers a business account details that carry your business name for payment instead of your own full name.
5. Safeguarding Your Business/Corporate Name
One huge advantage of registration with the Corporate Affairs Commission (CAC) is safeguarding your business name from being used by another person/business.
No one else can register a business with that same name or a similar name.
6. Getting Loans
When you apply for business loans, you’re going to have to prove that you’re actually a business. Banks and investors will ask to see your business registration certificate along with other application requirements before approving you for a loan.
7. Certificate of Incorporation
You will be issued a certificate of incorporation by the appropriate government agency. In Nigeria, the Federal Government of Nigeria issues through the Corporate Affairs Commission (CAC), a government agency empowered to register companies and issue certificates.
8. Perpetual Succession/Continuity
A final benefit of registration is the business continuing even if you die or become ill. A registered business is an entity in its own right; thus, another can assume ownership or control or your business can be sold. Neither is possible without registration.
9. Legal Liability Protection
Another benefit of registration is receiving some legal liability protection (note that a private company limited by share has a legal personality distinct from that of its subscribers).
If you register or incorporate your business, you will not be held pe
rsonally responsible for certain accidents and other liabilities incurred by the registered company.
Thus, you may find it easier to attract investors, since they will know you are not personally responsible for the company’s well-being.
10. Reputation With Customers
Customers and clients, especially people you’ve never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a “fly-by-night” operation if your company isn’t properly registered.
When a business is registered with the Corporate Affairs Commission (CAC), it could put your clients at ease when making a decision about whether to spend money with/transact business with your company.
CAC FAQs
Establishing Business Bank Accounts
You need to provide proof that your is properly registered with the state to open a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities.
What Happens After I Register my Business?
What happens after company formation? You can start trading through your new company as soon as you receive notification that Companies House has approved your application.
If you choose to start trading straight away, your company is ‘active’ and you must register with HMRC for corporation tax within 3 months.
Can You Register a Business Name without Trading?
Register a dormant company to protect a company name. You do not have to trade through your company. It can be registered as dormant for its entire existence for the sole purpose of protecting a brand name or trademark.
Is it Free to Register a Business Name?
There is a small fee for filing and you may also be required to publish a notice in a newspaper of the name. Filing a DBA is the most common method used by sole proprietors.
If you are using your own legal name for your business, registering a business name is not required.
What is the Business Name Registration?
A business name is a name your business operates under. You need to register a business name if you conduct business under a name other than your own. Before you register a business name
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StudentsandScholarship Team.
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