Turning your business into a legal entity should be your top priority as a business owner in Nigeria. Registering your business with the Corporate Affairs Commission (CAC) is a good edge to withstand the competition in the market and also earn the trust of your customers.
You might be wondering about the whole process, however, the truth is that you can now comfortably register your business online from the comfort of your home.
This article acts as a guide on how to register a company online in Nigeria. Keep reading and pay close attention!
What is CAC?
CAC which stands for Corporate Affairs Commission is a government-owned and backed agency that is responsible for regulating the formation, incorporation, and management of companies in Nigeria.
It was established and commissioned in 1990, under the Companies and Allied Matters Act (CAMA). Every business and organization operating in Nigeria is expected to comply with this Act. Non-compliance may lead to business closure or sanctions.
By registering your organization, business, or company with this agency, your company becomes a registered, legal, and recognized entity. Aside from that, there are a lot of benefits attached to registering your company with CAC. Keep reading to discover them.
Benefits Of CAC Registration
CAC registration is a crucial step to take towards the legalization of your company. Here are some of the top benefits associated with it;
- Legal recognition: By registering your business with CAC, you can proudly say that your business is legal.
- Access to business opportunities: Your business is eligible to collaborate with other companies for growth and profits.
- Increase in customers’ and clients’ trust and loyalty; The certificate obtained from the CAC registration aids in making your buyers have more loyalty to your brand as you are verified and recognized by the government.
- Protection of your business name: Once your business name is registered with CAC, another business can’t use or register theirs with your name. Hence, to protect your business name, ensure that you register your business.
Types of Companies Eligible For CAC Registration
Aside from NGOs and Non-profit organizations, the following types of companies are qualified to opt for a Corporate Affairs Commission (CAC):
- Private Limited Companies
- Public Limited Companies
- Sole Proprietorships
- Online brands
Requirements For A Corporate Affairs Commission Registration
Before embarking on CAC registration, you must first ensure that you have all the required information and documents intact and ready.
Failure to provide a complete document or inconsistency in information, may lead to rejection or delay in your registration. Here are the major requirements;
- A Business Name: Choose a unique name for your business or company. Ensure that the name is not an existing name. How can that be done? Simply head to the CAC official portal to check the availability of your business name. If the name is already registered, you need to change yours.
Meanwhile, even if another business or company answers the name you intend to give yours, provided that the name hasn’t been registered, you can go ahead with him.
- Company’s Memorandum: This is a crucial document that must be submitted on the portal during registration.
- ID of Directors and Shareholders: You must present a document with the full identity of all directors and shareholders in your company.
In general, the following are required;
- First name
- Other name
- Date of birth
- Phone number
- Home address
- Your Business Address
- House Number:
- Street Name:
- Nature Of Business
- Business Name 1
- Business Name 2
- Functional Email Address
- ID Card
Here is the attachment of the two documents that will be issued to you…
- STATUS REPORT..
The status report is the document that indicates that you are the owner of the CERTIFICATE.
In the status report, all your information will be in the status report; your name, address, date of business everything as important as your certificate so as the STATUS REPORT.
How To Register A Company Online In Nigeria
Provided that you have the above documents and information ready, simply follow the steps below to register your company;
Step 1– Create An Account
The first step is to create an account on the Corporate Affairs Commission (CAC) website. To do this, you need to provide your personal information like name, email address, and phone number.
Step 2– Fill Out The Form
After creating an account on the website, the next thing is to fill out the registration form. Here, you are expected to enter the details of your company like name, address, shareholders, and other important details as shown on the form.
Step 3– Upload the Required Documents
In the section where your documents are required, kindly upload them. This may include your company’s address and memorandum.
Step 4– Pay For the Registration Fee
There is a section provided for payment. The registration fee is the amount you pay for the registration of your company and the certificate. This fee depends heavily on the type of company and its size.
Generally, the fee ranges from N10,000 and N50,000. Based on the information provided, your fee will be determined.
Step 5– Track Your Application
Once you have done the needful, the process of approval is initiated. However, this does not take minutes. Hence, we ensure you track the application by checking the website often to determine its status and if there is any need to add extra documents, please do that immediately.
Step 6– Receive Your CAC Certificate
Upon completion and approval of the application, you will receive an email with your CAC certificate. This shows that your business is a legal entity and is recognized by the government of Nigeria.
Meanwhile, some requirements are essential after registration. We will look at them in the subsequent heading.
Post CAC Registration Requirements
After registration and approval of the application, the following are needed;
- Tax Identification Number (TIN): As a registered business or entity, you must pay taxes to the government. For easy payment, you need to provide a tax identification number known as TIN from the Federal Inland Revenue Service (FIRS).
- Register With Other Organizations: This does not apply to all companies as it depends on what your company is into. These organizations could be the Central Bank of Nigeria (CBN), Nigerian Communication Commission (NCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food and Drug Administration and Control (NAFDAC).
- Business Bank Account: You must have a business bank account for all the financial transactions performed by your company.
Tips For A Smooth CAC Registration
For a smooth Corporate Affairs Commission (CAC) registration, ensure that you double-check all the documents and information before and after uploading them on the registration portal.
You can also seek professional help from experts in CAC registration in case you are encountering issues on the sight or you can even pay them to register your company for you instead of making a mess of the whole process.
Frequently Asked Questions.
How long does it take?
Generally, the registration and approval take a couple of weeks to complete and approve. However, online registration will take a shorter time.
What is the cost of CAC registration?
The registration fee depends on the type of company and size. However, it is usually between N10,000 and N50,000.
Can I change the details later?
Yes, you can change details later during post-registration however, it is wise to get it right from the beginning.
It is easier to register your company online than the traditional way. It takes a few weeks to approve. The process can be challenging however, by following the steps outlined in this article, you will get your business registered and approved.
Remember to double-check the information and documents, to avoid rejections and delays. Meanwhile, feel free to ask questions in the comments section.