Ideally, the most important thing to do when you want to start a business in Nigeria is to register your business name with the Corporate Affairs Commission (CAC). This will help you know if the name you have chosen in your mind has not been registered by someone else.
Painfully, most business owners build brands with Business names only to find out that someone else has the legal right to their ‘business name’. There are many reasons why some people fail to register their business with the Corporate Affairs Commission. It could be due to ignorance, and some see it as a way to escape paying taxes. However, you should know that the benefits of registering your business far outweigh any perceived disadvantage.
Benefits Of Registering Your Business With CAC
1. Business Trust
Upon registering with the Corporate Affairs Commission, you can open a corporate account with your registered Business Certificate with any bank.
Potential customers feel more comfortable paying into a corporate account because they know their money can be traced. Your partners will naturally trust you because they'll feel you are Legitimate, reliable and reputable.
Registering your company also enhances the reputation and perception of your business to prospective clients.
2. Securing Loans and Investors
With your CAC Business Registration Certificate, you can apply for loans and grants from commercial banks or microfinance institutions, private or public Organizations in Nigeria.
You will also have better access to investors with a registered business as investors look at the business structure first before investing. Sometimes, you can easily obtain a visa and travel to any country for business purposes and conferences.
3. Establishing Business Structure
Registering your business is the first step to getting your business structured. Without registering your business, you are running a glorified hobby.
When your business is registered, even if you are dead or become incapacitated, your business continues especially when you have the right structure in place.
How to Register your Business with CAC, Corporate Affairs Commission
In the past, it would take several months and a lot of paperwork to register a business name in Nigeria. It’s no longer that hard to register a business name with the Corporate Affairs Commission.
In this blogpost, we have itemized all you need to know about the Corporate Affairs Commission (CAC) registration. We have provided detailed information and guidelines that will assist you in your application process.
These include the qualifications, requirements, cac.gov.ng free registration, CAC registration fees, free CAC registration portal, CAC free registration portal, CAC business name registration, as well as steps on how to register your company or business name with the Corporate Affairs Commission without any hindrance.
Any member of the public can create a CAC account as long as he or she meets the requirements. Kindly note you will be a director, trustee, or a proprietor/partner during the registration process.
You can register your business either as a Business Name or a Limited Liability Company. The business name is registered by a sole proprietor and can be registered by either one person or two people maximum. To register as a limited liability company previously, you will need at least two directors and a secretary. However, a new law allows one person to register a limited liability company.
If you register as a business name, all business liabilities are on you. On the other hand, if you register as a limited liability company, the business is seen as a separate entity from the owner. So, all liabilities of the company are borne by the company.
Please note that you do not necessarily need the services of a chartered accountant, legal practitioner, or any other third party to register your business name with the Corporate Affairs Commission (CAC).
There are two ways to register your business with CAC:
A. Register Through CAC Online Portal
Below is the step-by-step guide on how to register a business name in Nigeria with the Corporate Affairs Commission (CAC):
- Visit services.cac.gov.ng
- Create an account
- Log in
- Do a public search of your preferred name
- Reserve your business name
- Follow other procedures as directed
- Choose a business name and check for the availability
- Complete your pre-registration form to register a business name
- Pay for a filing fee
- Prepare your documents for upload
- Submit the original copies of your documents
The registration process has been expanded below and is so easy and straightforward. CAC registration takes the following steps:
Step 1: Provide your authorized representative
Surname/First Name/Other Name
Date of Birth
Step 2: Provide your account details
Phone number/email address
Step 3: Provide your residential address
House Number/Building Name
Step 4: Provide a valid means of identification such as your;
Permanent voter’s card
National ID card
Birth Certificate/Age Declaration
Step 5: Finally, click on ‘register‘ and upload relevant documents. Upon completion of the registration and approval by the CAC, your certificate of incorporation will be uploaded to your account dashboard where you can easily download and print it out.
To get started, simply visit www.cac.gov.ng to get started. Click on Online Registration at the middle of the home page and start the online registration.
CAC Business Registration Fees 2022
How much does it cost to register a business name in Nigeria?
- Registration of company not having a share capital costs N20,000
- Public company registration for the first 1m share capital or fewer costs N20,000
- Registration of a private company with an authorized share capital of N1m or less, costs N10,000
- Private company registration above N500m authorized share capital costs N7,500 for every 1m shares of the company.
- Registration of a private company with a share capital of more than N1m and up to N500m costs N5,000 for every 1m shares of the company.
B. Get An Expert To Help You Register
Registering yourself can be difficult if you lack the experience. So, it is always best to engage the services of a professional. Most times, people get stuck when they get to a particular stage. To avoid that, you can hire the services of a professional.
You can trust Biopreneur Nigeria to help you with your business registration. With us, it is fast, affordable and seamless.
Our prices are listed below:
Business Name – N20,000
Limited Liability Company – N55,000
Trademark – N60,000
NGO – N100,000
Your certificate will be ready in 5 -10 working day to crown it all.
Contact Us Here