The importance of registration of a business with the government through the Corporate Affairs Commission (CAC) can’t be overemphasized.
Owners of businesses may think that registration of their businesses with the government through CAC is a waste of time or think its another way the government extorts money from businesses. But when you register your business, you are doing yourself a whole lot of good than you are doing the government.
The registration of business is statutory provided for in Part B of the Company and Allied Matters Act (CAMA). Since it is a legal requirement for businesses that operate in Nigeria, it is needed to accord your business a legal status.
So for those interested in doing business in Nigeria, both foreigners and fellow country men and women, here is the process you go through to register your business with the federal government of Nigeria.
Pick A Name
First you need to pick a name and check for availability of proposed company name. Some names are prohibited; reserved to be used by the government. Also, some names can’t be used because they have been used by another business or they are similar to the name that has already been used by another business.
The next step is to complete pre-registration form called CAC1. This can be done online by filling the form on the Company Registration Portal (CRP)
Then you pay filing and stamp duty fees; the stamp duty fee which is also referred to as registration fee costs N15,000. This is the only money legally required of you by the government while registering your business.
You proceed by preparing the signed scan copy of your pre-registration documents for upload as follows:
- The registration form (Form CAC1.1)
- Memorandum of Association and Articles of Association (MEMART)
- Recognized form of identification for Director(s)/Subscriber(s) of the company’s shares and Secretary of the company.
- Evidence of payment to CAC i.e. the receipt of payment of the stamp duty fee or the registration fee.
You will have to upload those scanned documents for processing.
Receive your Certificate of Incorporation
Finally, submit the original copies of the documents uploaded to the Corporate Affairs Commission (CAC) office you had selected. They will be exchanged for your Certificate of Incorporation and the Certified True copies (CTC) of the documents you submitted with the Corporate Affairs Commission.
The Certificate of Incorporation that is issued to you is the evidence that shows that your business has been registered with the Federal Government of Nigeria through the Corporate Affairs Commission and its duly incorporated.
There are numerous benefits your business or corporation enjoys when it’s registered with the government through the Corporate Affairs Commission (CAC) and incorporated. Some of those numerous benefits are;
- Your business will be incorporated as you will be issued a Certificate of Incorporation by the Federal Government of Nigeria through the Corporate Affairs Commission (CAC).
- Your business acquires a legal status, can sue and be sued and will be a full fledged legal person.
- When your company is registered, accessing loans and grants becomes very easier either from the banks or from the government.
- A registered business has the capacity by the reason of its incorporation to employ full-time employees and staff and pay them salaries and other remunerations.
- Your business will have the opportunity to seek for intern especially from National Youth Service Commission.
The body or agency established and empowered by the Federal Government of Nigeria to incorporate or register businesses or corporations is the Corporate Affairs Commission (CAC).