Registering a business is one of the most important tasks for any entrepreneur. Without a registered company, you can’t start operating legally. It can be an intimidating process, because sometimes it’s difficult to know where to start and what you need to do, but registering your business is not just about investing in a company name, it’s about investing in the future of your company.
We’ve created this guide about CAC registration as a starting point for anyone who wants to register their business in Nigeria. We hope that you find it helpful and fun!
What’s the CAC:
The Corporate Affairs Commission is a company’s registry providing registration and regulatory services that meet the expectations of stakeholders for the benefit of the economy.
The CAC was established as an autonomous body by the Companies and Allied Matters Act, to regulate the formation and management of companies in Nigeria, due to the inefficiency and ineffectiveness of the former company registry, a department within the Federal Ministry of Commerce and Tourism which was then responsible for the registration and administration of the repealed companies Act of 1968.
Functions of the CAC:
The functions of the Commission include:
- To administer the Act, including the regulation and supervision of the formation, incorporation, as well as management and winding up of companies.
- To establish and maintain registry offices in all the states of the Federation adequately equipped to discharge its functions.
- 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 CAC also registers Business Names, and Incorporated Trustees as well as provides a wide range of ancillary services.
CAC registration: Guide to register your business online in Nigeria Step by Step
Step 1: Create an account on the CAC registration portal
If you already have an account, skip this step, if not, go to the CAC registration portal and click on register. Start filling in all the required fields, including your personal information, your account details, your address, and finally a way of identification, then click on Register. You will immediately receive a confirmation email, where you should click on the link to complete the registration.
Step 2: Reserve your company Name
- On your dashboard, click on the New Name registration Button.
- Select classification company and specific type, but first, make sure to know the right legal form for your Business.
- Enter proposed name options 1 & 2, then select the reason for availability search on the objectives page.
- Click save and continue to proceed to payment.
- On the payment page, click Remita to make the payment. The new name reservation costs N500.
- After completing the payment, download the receipt, then head back to the dashboard.
- You should receive a response from the CAC within 24 hours. If your business name reservation is successful, you will get an approval note containing a name availability code.
Step 3: Register your company
In order to complete your CAC registration, follow these steps:
First, you should start the registration with your Name availability Code. Once the code is verified, you can proceed to fill in the CAC registration form.
For company details, you have to include information about your company, such as principal business activity, email, physical address…
For company directors, add your personal information, your addresses, as well as means of identification.
Similarly, fill in all the required fields on the secretary page. You can add an individual secretary or a corporate one. For small companies the appointment of a secretary is optional, however, if you do decide to appoint a company secretary you must provide the relevant details. Public companies are required to appoint at least one secretary.
After that, scan and upload the required documents in PDF format. Then pay the CAC registration fee and the stamp duty.
Wait for the Corporate Affairs Commission to review your application. When the application is approved it moves to a registered column on your dashboard. If the application isn’t properly done, a query may be issued.
CAC registration fees:
The registration fees depend on multiple factors, such as the chosen legal form, the capital, the required actions. For instance, name reservation costs N500, but name reservation for restricted words costs N5000.
Another example is incorporation. Incorporation of a company with an issued share capital of N1 million or less costs between N10000 and N20000, while the incorporation of a company with an issued share capital above N500 million can cost up to N15000 for every N1 million share capital.
For more information, please visit CAC’s schedule of fees.
THE CLAIM THAT THE FEDERAL GOVERNMENT IS DOING FREE ONLINE CAC COMPANY REGISTRATION IS FALSE. Scammers continue to prey on people’s desires for freebies by deceiving them with a free CAC registration offer. However, we know that you won’t fall prey to this kind of scam, you’re too smart for that!
Setting up your business correctly is essential for a number of reasons. Firstly, it will make the process of starting your business much easier. Secondly, it will make sure that you are legally compliant and not missing out on any tax benefits. Last but not least, it will make sure that you have the right protection in place for your business in case things go wrong.
That’s why we advise you to get professional assistance from a CAC accredited agent or a Lawyer with setting up your company if you want to do it right the first time around and avoid any issues down the line.