The Corporate Affairs Commission (CAC) has made registration compulsory for all Nigerian business owners, mobile money operators, and business merchants, among others. Companies that register with the CAC can receive grants and loans from government and non-governmental organizations.
Registering a new company with the Corporate Affairs Commission can be a stressful process. This guide will explain how you can register your business through the CAC website yourself or with the aid of a CAC-accredited agent.
This guide explains everything you need to know, from documentation requirements to payment options, to ensure a stress-free registration experience.
What is CAC Business Name Registration?
The Corporate Affairs Commission is the standardized body responsible for registering and dissolving businesses in Nigeria. The CAC issues a certificate to registered companies along with a unique registration number. Business owners can register their businesses at their convenience or with the help of an accredited CAC agent.
Although the CAC has existed since 1990, most business owners conduct their activities without registering their businesses. Some business owners only choose to register their business after discovering grant, loan, or travel benefits.
Importance of Registering a Company with the Corporate Affairs Commission (CAC)
Registering your business with the Corporate Affairs Commission offers the following benefits:
- Legal Compliance:
The Companies and Allied Matters Act (CAMA) mandates every business to register with the Corporate Affairs Commission. This law regulates the management of companies and businesses in Nigeria.
Registering your business with the commission demonstrates compliance with federal laws. Failure to comply with these laws can lead to legal consequences, including business dissolution. In essence, registering with the commission is paramount if you want to comply with the law.
- Legal Protection:
Businesses registered with the Corporate Affairs Commission (CAC) receive protection under Nigerian law. Individuals or firms cannot reuse your company name, tagline, or digital images without your business management’s consent.
Unregistered businesses risk various sanctions from the state or federal government. They also risk theft or misuse of their brand identity without consent.
- Trustworthiness:
A major benefit of registering your business with the Corporate Affairs Commission is that it enhances public trust. Registered businesses can sue or be sued, which boosts your credibility. For instance, a new business may struggle to gain the trust of new clients or partners, but having a CAC account significantly improves your brand image.
- Business Bank Account:
A business bank account is separate from a personal account; it enhances your professional status. A CAC certificate is one of the requirements for opening a business account.
Mobile money agents, stores, and other businesses can open a business account using their registered business name.
- Travel Documents:
A CAC certificate increases your chances of obtaining a travel visa. International embassies prioritize business owners who comply with business or company laws in their resident countries. You can also obtain a visa for leisure or business purposes.
- Access to Grants and Loans:
A CAC certification is one of the prerequisites for accessing grants and loans in Nigeria. Unregistered businesses have no chance of accessing financial grants from government bodies.
Non-governmental organizations that support business startups with financial aid may also request a CAC certificate to prove the authenticity of the business.
In summary, registering your business with the Corporate Affairs Commission offers legal benefits, enhances trust, and allows businesses to access financial grants and loans.
How to Register a Company with CAC in Nigeria
You can register your business with the Corporate Affairs Commission from anywhere in the world and at your convenience. Learn the steps to register your business and obtain a CAC certificate:
Step 1: Create a CAC Account on the Company Registration Portal (CRP)
The official CAC website for business name registration is pre.cac.gov.ng/. Use only this website to process your company’s registration, create your CAC account, register a business, and make changes to registered businesses, etc.
Step 2: Start Registration
To register your business, navigate to the registration menu option on the official CAC website or click this link: https://pre.cac.gov.ng/register. You will then need to input specific information about yourself on the website.
Step 3: Upload Supporting Documents
This stage requires you to verify the business owner. The CAC accepts all government-approved means of identification, but an NIN is recommended.
Step 4: Check Name Availability
At this stage, business owners check the availability of their company names. You cannot reuse registered company names, so you may need to make changes if your desired name is unavailable.
Step 5: Business Registration
After choosing an available company name, proceed with the registration process. You must upload verifiable proof of address; using an electricity bill is recommended.
Step 6: Payment
To complete your registration, each company must pay NGN15,000 to receive its CAC certificate.
Step 7: Business Approval
After making payments, business owners wait 3-14 working days for the CAC to review their business. Businesses that meet the requirements will receive their CAC certificate in JPG and PDF format. You can print hard copies and use them for various verification purposes.
Who Should Register Their Business with CAC in Nigeria?
The following business types should register to avoid complications:
- POS or mobile money agents
- Food Vendors
- Retail Stores
- NGOs
- Online Businesses
- Small and large-scale businesses
- Religious organizations (e.g., churches, mosques), etc.
Key Takeaways
- Ensure you register your business with correct information. Cross-check your address, postal code, and business name, among other details.
- If your company name is unavailable, adjust the spelling or choose a related name or acronym for your business.
- You can register your business yourself by creating an account on the Company Registration Portal (CRP) with any government-approved ID, checking for business name availability, uploading relevant documents, making payments, and waiting for your application review.
Frequently Asked Questions
How Long Does It Take To Acquire a CAC Certificate?
After registering on the official CAC website, you should receive your CAC certificate within 7 working days. The waiting period allows the CAC to verify the company details and personal information provided by the trustee, proprietor, or business partner.
What Documents Do You Need to Register with CAC?
You need the following important documents when registering on the Corporate Affairs Commission (CAC) website:
- Proof of identity (e.g., NIN slip, international passport, driver’s license, or voter’s card)
- Proof of address (e.g., electricity bill, waste bill, cable TV subscription receipt)
- Passport photograph
- Photograph of signature
Do You Need an Accredited Agent to Register Your Business?
No, you can complete everything yourself if you follow the guidelines in this blog post. However, if you encounter any challenges, seek help from an accredited CAC agent near you.
How to Register Your POS Business with CAC in Nigeria?
In line with the new directive from the CBN and the Companies and Allied Matters Act (CAMA), all POS and mobile money agents must register their business or face severe sanctions. To register your business on the CAC website as a POS operator, visit the registration portal, fill the registration form, and pay less than NGN10,000 to register your business.
My Business Name Is Already Taken on the CAC Website
Business proprietors, trustees, or partners commonly face the challenge of an unavailable desired business name when registering a company. If your business name is already taken, try changing the spelling or choosing a different name that matches your business.
How Much Does It Cost to Register a Business with CAC in Nigeria?
Generally, registering a business yourself costs between NGN10,000 to NGN15,000. However, using a CAC agent may cost you up to NGN20,000 or more.
Cost Breakdown for Registering a Business with CAC in Nigeria
The following are the estimated costs for registering your business in Nigeria:
| Item | Cost (NGN) |
| Name Reservation | 500 |
| Registration Fee | 10,000 |
| Total | 10,500 |
How Much is CAC Annual Payment?
Registered businesses must file their annual returns by paying between NGN3,000 for SMEs and NGN5,000 for limited liability companies. However, note that failing to make timely payments attracts a daily fee of NGN150 to NGN500, respectively.
Visit this website to file your annual returns: https://cacannualreturns.com
How to Register on the CAC Website Using an Accredited Agent
Anyone with a basic understanding of computers can register their company using their phones or laptops. The registration process is stress-free and comes at a reduced cost. However, challenges may arise during registration, and a CAC agent can best guide you further and simplify the process.
You can find an accredited agent near you by visiting pre.cac.gov.ng; they will assist with creating your account on the Company Registration Portal (CRP), submitting documents, and making payments, etc.
Conclusion
Registering a business with the Corporate Affairs Commission (CAC) aligns with company laws and the CBN monetary policy. Every business, regardless of its size and type, should obtain a CAC certificate to stand out and build trust among competitors.
The registration process is easy, and you can complete it yourself (DIY) without paying an individual or agency extra fees.