The Corporate Affairs Commission, in line with the Central Bank of Nigeria’s (CBN) policy, has mandated all business owners to register their businesses before 7 July 2024.
The CAC also disclosed that its recently introduced special registration portal makes registering a business name less hectic and can be completed within 24 hours.
To avoid the penalties that would come with non-compliance, hereunder is all you need to know about registering your business on the CAC Portal within 24 hours:
1. Account Creation: You must have created an account before you can register or manage your Business Name / Company. You can create an account with CAC by clicking on ‘Register’ in [https://pre.cac.gov.ng/register/new] using either your mobile phone number or your NIN. Creating an account takes less than 10 seconds.
2. Business Name Selection: A business owner must come up with an idea of the most unique and exclusive name for the business. When picking a name, you would have to consider the values of the business, the industry of the business, and customer appeal.
Business owners can search for the proposed business names they have picked, to confirm that the name has not been registered before. To check if a company or business name has been registered, follow these steps:
• Visit the CAC’s website, [cac.gov.ng]
• Scroll down the site and click on “Public Search”
• Insert the full name of the company in the search box and click on “Search”
If the company is registered, the result will display the full company name, RC number, and office address.
3. Business Name Reservation: Once it is confirmed that a business name has not been registered, it can be submitted for reservation on the website.
When you complete the form, make a ₦500 payment for name reservation, N5,000 for name reservation for restricted words, and N10,000 for CTC of Registration Documents (excluding other charges) to receive your Availability Code.
4. Business Pre-Incorporation: When you have completed your registration using the availability code you’re provided with (you’ll find this on your dashboard once your business name has been reserved).
You’ll need to provide details like your business name, address, and proposed business activities. You’ll also need digital copies of documents and a valid means of identification like a voter’s card, International Passport, National Identity card, Driver’s license, etc, proof of address; utility bill or tenancy agreement, and a business plan. This is optional for sole proprietorships.
When the pre-registration form has been completed, the Prospective business owner must now go on to upload relevant documents.
Some of the relevant documents to be uploaded on the CAC platform are:
• Form CACC 1, reservation and availability of Name.
• Names and addresses of the parties incorporating the company
• Two recent passport photographs of every director and authentic means of identification.
• Statutory declaration of compliance by a legal practitioner.
• Name and address of the company
• Address of the principal business office
• Filing with the Federal Inland Revenue Service for tax.
• All other documents or fees that may be needed by the commission to satisfy any law or condition. Upload your documents Online using the Company Registration Portal [https://pre.cac.gov.ng/register/new].
5. Payment of File and stamp duty fees: After uploading relevant documents, the business owner will be directed to make payment. An electronic certificate of registration and certified extract registration will be issued at the end of the process; this usually takes between three to five days.
Note that registration is end-to-end on the company registration portal (CRP).
Cost Of Registering Your Business With The CAC.
While the price is not static, CAC-accredited registration lawyers have said that the price for registering a business ranges from N20,000 to N40,000.
The price for registering a limited liability company ranges from N70,000 to N100,000, depending on the share capital.
The Penalties For Non-Compliance with CAC On One-Off Basis Are:
Small company – 5,000.
Company Private other than small – 10,000.
Company limited by guarantee – 10,000.
Public Company – 25,000.
Limited Liability Partnership (LLP) – 10,000.
Limited Partnership (LP) – 10,000.
Business Names – 5,000.
Incorporated Trustees – 10,000.
Advantages Of Registering Your Business With CAC.
It Saves Your Business: Registering a business name in Nigeria and saving businesses from complications that can be avoided, including sanctions after the July 7th deadline and worst-case scenarios like impersonation.
Official Recognition: Upon completion of registration, The CAC issues an e-certificate that can now be used worldwide without being physically present.
Increase customer confidence: Registering your business with CAC can promote sales and customers’ confidence and trust in a brand.
Provides Legal Protection For Business: When a business is registered with the Corporate Affairs Commission, the name is protected from being used by any other business in Nigeria, making it fraudulent when mitigated.
Access To Loans: Getting loans becomes easier for CAC-registered businesses. It improves the confidence of investors and lenders in a business by providing credibility and trust.