The Corporate Affairs Commission (CAC), in alignment with the Central Bank of Nigeria’s (CBN) policy, has announced a mandate for all business owners to register their businesses by July 7, 2024.
The CAC has introduced a new special registration portal designed to simplify the process, allowing business names to be registered within 24 hours.
READ ALSO: CAC ambassador urges small businesses, POS agents to meet July 7 registration deadline
Steps for registering your business on the CAC portal within 24 hours
- Account Creation: Start by creating an account on the CAC portal using your mobile phone number or NIN at https://pre.cac.gov.ng/register/new. This process takes less than 10 seconds.
- Business Name Selection: Choose a unique and exclusive name for your business, considering its values, industry, and customer appeal. To ensure the name is available, visit cac.gov.ng, scroll down to “Public Search,” and enter the proposed business name in the search box.
- Business Name Reservation: If the name is available, submit it for reservation on the CAC website. The fees are ₦500 for standard name reservations, ₦5,000 for restricted words, and ₦10,000 for CTC registration documents.
- Business Pre-Incorporation: Using the provided availability code, complete your registration by providing details like your business name, address, and proposed activities. Upload required documents such as Form CACC 1, recent passport photographs of every director, statutory declaration of compliance, and proof of address.
- Payment of File and Stamp Duty Fees: After uploading the relevant documents, make the necessary payments. An electronic certificate of registration will be issued within three to five days.
Costs and penalties for non-compliance
The cost for registering a business with CAC ranges from ₦20,000 to ₦40,000, while registering a limited liability company costs between ₦70,000 and ₦100,000, depending on the share capital.
Penalties for non-compliance include:
- 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
- Protection and Compliance: Avoid complications and sanctions by registering before the deadline. Registration also prevents impersonation and unauthorized use of your business name.
- Official Recognition: Receive an e-certificate that is recognized worldwide.
- Customer Confidence: Increase customer trust and promote sales.
- Legal Protection: Your business name is legally protected from being used by others.
- Access to Loans: Registered businesses find it easier to secure loans and attract investors.
Documents needed for business registration with CAC
When registering your business with the Corporate Affairs Commission (CAC), you will need to provide several documents to complete the process. Here’s a detailed list of the required documents:
- Form CACC 1: Reservation and availability of name.
- Names and Addresses: Details of the parties incorporating the company.
- Passport Photographs: Two recent passport photographs of every director.
- Means of Identification: Authentic means of identification for each director, such as a voter’s card, international passport, national identity card, or driver’s license.
- Statutory Declaration of Compliance: This must be completed by a legal practitioner.
- Company Address: The address of the company.
- Principal Business Office Address: The address of the principal business office.
- Proof of Address: Utility bill or tenancy agreement.
- Business Plan: Optional for sole proprietorships.
- Federal Inland Revenue Service (FIRS) Filing: Filing with the Federal Inland Revenue Service for tax purposes.
- Additional Documents or Fees: Any other documents or fees that may be required by the commission to satisfy any law or condition.
By following these steps and providing the necessary documents, you can complete the business registration process efficiently and in compliance with CAC regulations.
