Last updated on Oct 4, 2020
How To Register Your Business/ Company Name under CAC in Nigeria (Why you need to)
How would you feel if someone steals your prestigious brand name all of a sudden?
As an entrepreneur who wants to have a trademark in Nigeria, you need to register your business under corporate affairs commission (CAC).
Now what is CAC?
CAC is responsible for the regulation of companies and business registration in Nigeria. The Corporate Affairs Commission (CAC) is a body that was established in 1990 under the Companies and Allied Matters Act.
Apart from having a business card ,you should also register your business.
Now ,before we continue.
Why Do You Need To Spend Your Time And Money To Register For CAC?
Advantage / benefit / Importance / Why you should register your business with Corporate affairs commission (CAC)
While most average Nigerians see registering for CAC as a waste of money, others ignore CAC as a way to avoid tax,
but in the midst of these backsides, there are alot of advantages a registered business has over one that is not registered under CAC.
These include but not limited to:
—1. Before you can be able to create a corporate bank account,you will require your CAC certificate.
—2. Having a business without CAC registration is like having a food product that is not registered by NAFDAC. Nobody will trust you.
—3. A CAC certificate is highly needed whenever you want a grant or loan for your business.
—4. It boosts your reputation and reliability.
—5.You can easily gain Visa to travel abroad for business duties.
—6. You prevent your brand name from being taken away by someone else.
If your business name is registered on CAC, nobody is validly allowed to create a similar or same name.
How To Register Your Business with corporate affairs commission (CAC)
Now that you have taken that bold step to register your business name with CAC, how do you go about it?
First thing you need to know is that you can either register as a Business Name or as Limited liability Company
If you register as a business name, you are the sole owner/founder of the business, you take all decisions without consulting anyone. The process is simpler as you do not need a lawyer or chartered accountant.
Note that two people can also apply for this,but not more than two.
but if you have a larger company, you can go for Limited Liability Company. In this case ,you should have more than two co-workers like a chartered accountant,secretary, a director, marketer and other associates.
Now,How do you register for CAC?
There are three ways in which you can go about this.
- 1. Go to their nearest office
At the end of this post, I’ll list all the CAC offices in every state across Nigeria.
- 2. Get a consultant to help you with registration
I remember when I initially wanted to register for JAMB exam during my secondary School, I went with someone who has experience in JAMB registration.
Sometimes we need to be guided to avoid making costly mistakes considering the money involved.
One trusted consultant I know is Redahliaworkspaces.com
They are also associated with “entrepreneurs.ng”
They are located at:
43B, Emina Crescent, off Toyin
Street, Ikeja, Lagos.
They charge N20,000 for business name and N55,000 for Limited Liability Company,60k for Trademark
Instead of wasting so much time, you will get your CAC certificate in less than two weeks
- 3. Register your business with CAC Online
You can sit down at home with your mobile phone or computer and register your business Online.
This is what I’ll fully explain in this article
Before I proceed on the steps to register your business with CAC,
Let me break down the cost(fee) needed.
How much money Do I need to register my business with corporate affairs commission (CAC)?
Before starting, you need to know the cost of it.
You can choose one of these available options depending on your type of business.
Registration of a private
company with an
authorized share capital
of 1million naira or less
Registration of private
company with share
capital of 1 million naira
up to 500million naira
Price: N5,000 for every 1million naira shares of the company.
500 million naira
authorized share capital
Price: N7,500 for every
1million naira shares of the
registration for the first
1million naira share capital or lesser
Registration of company
that doesn’t have
any share capital
Now that you have known the prices ,let’s continue our step-by-step guide on how to register your business with Corporate affairs commission (CAC) Online.
Step-by-step beginner guide on how to register your business with Corporate affairs commission (CAC) Online
1. Choose a business name
Choosing a business name is the first thing that comes to mind when you want to register your business.
Your business name should be unique and related to the niche of your business.
Do not think of choosing popular names like Liberty Enterprise, Sunshine enterprises, Emeka enterprises… these are so common and will definitely be unavailable.
In this article about choosing a name for your blog,I have details on how to choose the right brand name for your business.
Note that you should have at least two business names, just incase one of them is already taken by someone else.
2. Submit your business name to CAC for name reservation.
Once you have made up your mind for a business name, you can submit your business name to CAC by purchasing a form which cost NGN500 .
After paying the NGN500 and submit your business name for reservation, you will get a result after one week.
Note that if your name has already been taken, you will have to pay another NGN500 for another name.
This is why you have to make proper research before choosing a name.
If everything goes well, your name business will be reserved for 60 to 90 days.
3. Register your business name online
After name reservation, you can then Register online through their official website. www.cac.gov.ng
You will fill up a pre-registration form (CaC-BNo1)
4. Pay up for filling fee
You can make payment online via their website portal or via bank. Keep the receipt.
Talking about filing fee, how much does this cost? There are different ranges.
I have stated all the prices above, you can scroll up or check the table of contents at the beginning of this post.
5. Upload your documents during pre-registration
You have to get a copy of the following documents, scan and upload them to CAC portal online. www.cac.gov.ng
- The receipt you got after payment of filling
- Application form
- Identity cards of the business owners
6. Submit your original documents to CAC
You have to go to a CAC office close to you and submit the original copies of those documents you uploaded online.
This is required to collect your CAC certificate.
Things Required to register for Coperate Affairs Commission (CAC)
Apart from cost:
—1. The desired name of your business, with an alternative, just incase the first one has been taken
—2. Aim and objective of your business
—3. memorandum and article
of association of your business.
—4. Reservation and Available of name.
—5. The names and addresses of those people involved in the business, including the secretary.
—6. Two passports from each of the business owners,along with their identity cards. your signature should be at the back of your passport.
—7.Statutory declaration of compliance by legal practitioner.
—8.Form of the Federal Inland Revenue Service (FIRS) so as to pay tax
Before now, getting your business registered used to take a long time, you have to visit them several times.
But now, with the introduction of CAC portal along with this step-by-step guide, getting your business registered is as simple as A,B,C.
Considering the advantages I stated above,you need to get your business registered.
Note that every business Enterprise pay tax, so don’t dodge this.
If by any means ,you have a question. feel free to ask us in our comment box below.
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