CAC Registration: Registering your company gives you the ability to borrow and incur debt but more importantly, sell shares and raise equity capital. An individual can now register a company online with CAC, with little or no help from anyone.
Registering a business name requires having a valid, nationally recognized form of identification such as a: passport, driver’s license, permanent voter’s card, or a national ID card, read through for more information on CAC registration.
Registering your business with the Bureau of Internal Revenue (BIR) is one of the things that a business owner needs to do to make your business legal and to avoid the risk of being a tax evader.
Whether you are an individual (professional, consultant) or a company (single proprietor, partnership, corporation) you must complete the whole registration process.
The Corporate Affairs Commission (CAC) through its online platform has now made the incorporation of a company easier.
An individual can now register a company online with CAC, with little or no help from anyone, except for Section E in the Registration Form CAC 1.1, which requires the signature of a Legal Practitioner and attestation by a Notary Public or Commissioner for Oaths.
If you have ever had any dealings with the Corporate Affairs Commission (CAC) in the past, then you are used to the commission making promises it finds hard to keep.
What are the Requirements for Business Registration?
BIR Business Registration Requirements
- • DTI Certification (Single Proprietor) • Articles of Partnership SEC (Partnership).
- Contract of Lease or Land Title. • Contract of Lease – if you rent the place. • Land Title / Tax Declaration – if you own the place.
- Mayor’s Permit. • Barangay Clearance.
Why Register Your Business?
Identity
While it is possible to do business informally under your name, you cannot reach your full business potential without becoming fully formal.
It would be very hard for serious-minded people to give your business serious attention if you are trading under your name.
You can open bank accounts; apply for serious contracts etc., when your business has a proper identity.
Legal Separation
Depending on the form of business or company you register, you can separate your personal and business liability.
For example, a Limited Liability Company is a separate legal entity from yourself. A simple Business Name Registration does not offer this protection.
Getting Funds
You can only apply for government grants, business loans, startup investments, etc. when your business is registered.
No serious investor, financial institution, or government department would fund your business if it is not a registered entity.
Types of Business Registrations in Nigeria
Business Names
This is the simplest form of business registration open to Nigerians. Any individual or proprietor can register a business name themselves without going through a law firm, lawyer, chartered accountant, or any other professional service that offers business registration.
Limited Liability Company (LTD)
This is the most visible type of company in Nigeria and tends to be taken more seriously. This legal structure is more ideal for businesses that plan to grow big and this requires more legal hurdles to register.
You would typically need the services of a legal practitioner or chartered accountant to register an LTD company.
How to Register a Business Name
The full Business Registration could take up to 2 working days. 2 days.
This is the simplest type of business registration. Every Nigerian serious about doing business should go for this – as a minimum.
1. Choose Your Names
You need to think up multiple names that would be submitted and checked in the database of the CAC. With your list of names at hand, you can then approach the nearest offices of the CAC.
2. File the form at the CAC offices
The CAC would give you a form that requires a list of the names you want to check in their database as well as your details like names, addresses, telephone, and other contact details. They also require your passport photos and a filing fee. You can get the result on name availability the same day if you submit before 5 pm.
3. Business Certificate
The actual Business Name registration takes 24 hours once you decide on the name you wish to go for.
Your business certificate confirming the company name registration would be available for pick up a few days after the successful registration.
There are other types of business Registrations in Nigeria that are beyond the scope of this article.
- Limited by Guarantee
- Limited by Shares
- Public Companies (PLC)
Step by Step Guide on How to Register a Company (Private or Public)
- Check for the availability of the proposed company name. Read more about name reservation and Reserve a new Name
- Complete pre-registration form – CAC1.1 (Online using Company Registration Portal at )
- Pay filing and Stamp duty fees Check the fees for our Services here
- Steps 1-3 can be completed on the COMPANY REGISTRATION PORTAL (CRP)
- Prepare the signed scan copy of your pre-registration documents for upload as follows:
- Form CAC1.1
- Memorandum and Article of Association (MEMART)
- Recognized form of identification for Director(s)/Subscriber(s) and Secretary
- Evidence of payment to CAC
- Upload the scanned documents for processing.
Submit the original copies of the documents uploaded at step 6 (Form CAC1.1, MEMART, etc.) to the CAC office you had selected in exchange for your certificate and the Certified True Copies of the documents.
Proficiency Certificates Needed for Company Registration in Nigeria
- Nursery/ Primary School: N.C.E/B.Ed
- Secondary School: B.Ed
- Post-Secondary School: M.Ed, PGD. Ed, Ph.D. (Edu)
- Investment/Mutual Fund Company: SEC Authorization
- Advertising/Media/ Marketing: APCON
- Engineering/Construction: COREN
- Microfinance Bank/Bank/Any Other Financial Services: CBN Authorization.
- Insurance Company: NAICON Authorization
- Consultancy/Management: Master’s Degree in précised field
There might be other areas that are not covered in the list above but make sure you do your research to know if you need a proficiency certificate before registering it, otherwise you may have to get the certificate before proceeding.
FAQs about CAC Registration
How much will it cost to register a company in Nigeria?
By and large, the CAC official filing fees and stamp duty for a typical new company of One Million Naira shares capital are as follows: Name Reservation: N500. CAC Filing Fee: N15,000.
What is the difference between the business name and the company name?
The difference between a trading name, business name, a
nd company name is that a business name is simply a name under which you conduct business.
A company has its name which is required to include the legal terms or abbreviations ‘pty’ and/or ‘ltd’ at the end of the name.
What is the benefit of registering a business name?
Registering your company gives you the ability to borrow and incur debt but more importantly, sell shares and raise equity capital.
If you had any other business structure, then you would need to pay on your income tax statement even if that money is staying in the business.
What do I need to register a business name in Nigeria?
Registering a business name requires having a valid, nationally recognized form of identification such as a: passport, driver’s license, permanent voter’s card, or a national ID card.
We believe this information on CAC Registration www.cac.gov.ng Guide is helpful to you? Why not share it with your friends out there by clicking on the share button on this website. You can as well subscribe to be updated for further information concerning this topic.
StudentsandScholarship Team.
Be the first to comment