Business owners in Nigeria are required to register their business with the CAC, technically known as the Corporate Affairs Commission, to be recognized as legitimate business owners rather than imposters. Nonetheless, there are additional benefits associated with registering your business with CAC. For instance, opening bank accounts for your business, obtaining loans, safeguarding the business’s or corporation’s name, etc
As it is well known, Nigeria is home to a diverse range of good and terrible eggs in a variety of fields. For example, many Nigerians conceal their identity behind the guise of a business, which eventually benefits them.
Therefore, this article will help and show you easy steps on how to register a business name with CAC.
How To Register A Business Name with Corporate Affairs Commission
A. Register for a CAC account through the e-registration portal.
To begin, you must create an account (with a username and password) on the CAC website in order to be able to move to the page where you may enter critical information about the proposed corporation or business. Make certain to complete the columns suitably and factually. After successfully creating an account, proceed to the e-registration portal to begin the registration procedure.
B. Check the availability of the proposed company name by conducting a name availability search.
For justifiable reasons, your company/business name must be different and distinct from other similar businesses. This is done in order to ensure that no two firms or enterprises have the same name. When utilizing the “Search Now” button to conduct a name search, the applicant must locate an unallocated name to reserve before proceeding. In the event that a suggested company name is already taken, the applicant will be required to do a new search under a different name. If, on the other hand, a name is available, go to the next stage.
C. Reserve a name.
Once you have decided on a name, the following step is to fill out the necessary information about the company. You will be required to fill in the appropriate sections with information about the location, firm type, industry, and so on. Following submission, the applicant will be required to pay N500 as a processing fee. The CAC Review Team will contact the applicant within 24 hours of receiving the application to inform them of the application’s status. If the application is accepted, an “Availability Code” is generated and delivered to the applicant, who can then proceed.
D. Complete a pre-registration form and upload all of the necessary documents to be considered.
In order to register a company, an applicant must first get an Availability Code, which must then be entered into the Company Registration Portal (CRP). The site checks the code and then asks the applicant to proceed with the application. The following information will be required during the pre-registration process: 1. a company’s division 2. The company’s telephone and fax numbers 3. The directors’ and shareholders’ names and phone numbers Personal information about the directors and shareholders 4. The means by which the directors and shareholders can be identified. 5. The number of shareholders, the nature of the company, and so on.
E. Make the necessary filing and stamping fee payments.
After completing the pre-registration form, the applicant will need to pay the applicable stamp duty and filing fee in order to proceed with the process. The following are the fees charged by CAC for the services it provides.
F. Completing the registration procedure:
Proof of payment, government-issued identification cards of the directors and shareholders, work permits of expatriates (if any), stamp duty certificate, and the Memorandum and Articles of Association should all be scanned and uploaded (MEMART).
G. Save the necessary documents to your computer.
The uploaded files will be endorsed once they have passed through a successful review and have completed the registration process. Once the applicant has logged in, he or she will be able to download the company’s Certificate of Incorporation, as well as other important documents.
The method for registering a company online has been made more user-friendly and straightforward. The time required to complete a company registration has been greatly shortened, and may now be completed within 48 hours if all of the required documents and information are available.
However, some aspects of incorporation still necessitate the assistance of a third party, particularly a legal professional. In order to draft articles of association that differ from the general articles’ template provided by the CAC, the services of a corporate lawyer or a CAC accredited agent may be required. In addition, some firms are subject to a share capital threshold that is determined by the nature of the business that will be conducted by the company.
FAQs regarding the registration of a corporation or business name
How long is my CAC registration valid?
The validity of your company’s certificate of incorporation is linked to the legitimacy of the company itself. For as long as the firm is still doing business, its certificate of incorporation is still in effect.
How long does it typically take to reserve a CAC name?
It will only take 48 hours to reserve a name the CAC says. Names limited by guarantee and those with incorporated trustees will be approved in five working days.
Can a corporation increase the share capital of its shareholders after it has been established?
As long as the shareholders agree, a corporation can elect to increase its share capital. All that is required of the applicant is that they acquire the following documents and upload them to the portal. An increase in share capital must be announced in the proper manner. formalized declaration of increase in the stipulated format Providing the Federal Board of Inland Revenue with payment of Stamp Duty The notice of increase must be signed by the firm’s two directors or by the secretary of the company. Fees for filing must be paid. Where applicable, evidence of compliance with S.636 should be provided.
So, what exactly is a CAC certificate and how does one go about obtaining one?
The CAC Certificate refers to the certificate that a registrant receives from his or her CDO confirming that he or she has been certified as a CAC. The CAC Certificate contains the CAC’s name and a unique CAC identification number, which is provided by the CDO.
What is the length of a CAC number in decimal terms?
The CAC was established by the same legislation. The TIN is a 14-digit number that is assigned by the FIRS to each and every taxpayer.
Is CAC registration in Nigeria completely free?
A viral WhatsApp post encourages Nigerians to register their businesses with the Corporate Affairs Commission (CAC) for free and to qualify for benefits as a result of their participation. There is no truth to the claim that the Federal Government provides free online CAC company registration with benefits. This claim is deceptive.
Is it possible to change a registered business name?
Fill out all of the CAC forms that are applicable to you. Prepare a request for the CAC’s authorization to change your name, as well as any supporting evidence that may be required. Following that, the CAC will publish a notice in its official gazette informing the public of the name shift. If no objections to the name change are received, the CAC will issue a new Certificate of Incorporation to the corporation.
What is the cost of registering a business name with CAC?
10,000 Nigerian Naira. The CAC charges N10,000 as the formal filing fee for registering a business name in Nigeria. If, on the other hand, the applicant engages the services of an authorized agent to assist with the registration, the agent will charge a professional fee for the services rendered.
How to check if a business is registered (CAC Public Search):
1. Begin by visiting the CAC Public Search Portal.
2. In the search box, enter the company’s RC number (if known) or the company’s full name and click “Search.”
Is the CAC number exactly the same as the RC number?
The CAC will issue the company a Certificate of Incorporation after the commission has registered the business and all of the necessary requirements have been met. The Certificate of Incorporation will include the company’s name, status (private or public), and a unique registration number (RC Number).
Can my CAC registration expire?
The validity of the firm’s certificate of incorporation is tied to the company’s existence. When a business is lawfully running continuously, the certificate of incorporation remains in effect for the duration of that operation.
What can I do with my CAC Access Card?
CAC ID cards, also known as “Common Access Cards,” contain vital information for active-duty uniformed service personnel, selected reserve personnel, Department of Defense civilian employees, and eligible contractor personnel. CAC ID cards are issued by the Department of Defense. The following are some of the benefits of being a CAC member: Access to the foundation is granted. entry into structures and restricted regions of a facility.
What is the difference between SMEDAN and CAC, and how are they related?
Nigeria’s primary role in enforcing the Act is to oversee and regulate all aspects of a company’s inception and operation, as well as its management and closure. SMEDAN, on the other hand, provides businesses with access to commercial insurance.
Can I use my CAC card as a passport when traveling abroad?
Using an unexpired Common Access Card (CAC) or Uniformed Services Identification (USID) card as a secondary identity source document to obtain another type of identification card is permissible. However, it is ineligible for the issue of another foreign passport as a primary source document (e.g., France).