In this article, “EarnBase” provides you with information on How to Master business name registration with cac in 5 Simple Steps. The CAC registration fees and other significant guidelines have been provided in this article for those who wish to start a business and differentiate themselves from the competition.
In order to start a business in Nigeria, you must first register a business name with the Corporate Affairs Commission. So, if you’re wondering how much it will cost to register a business in Nigeria in 2023, you should worry no more, as that is exactly what I will be teaching in this post.
Who Is CAC And What Is Their Functions?
The nigeria corporate affairs commission was established by the Companies and Allied Matters Act, which was promulgated in 1990 to regulate the formation and management of companies in Nigeria.
The establishment of the Corporate Affairs Commission as an autonomous body was a result of the perceived inefficiency and ineffectiveness of the erstwhile Company Registry, a department within the Federal Ministry of Commerce and Tourism which was then responsible for the registration and administration of the repealed Companies Act of 1968.
Functions Of The Nigeria Corporate Affairs Commission
The functions of the Commission as set out in section 7 of the Companies and Allied Matters Act, includes the following:
- To administer the Act, including the regulation and supervision of the formation, incorporation, management and winding up of companies.
- To establish and maintain companies registry and offices in all the states of the Federation suitably and adequately equipped to discharge its functions under the Act or any law in respect of which it is charged with responsibility.
- Arrange and conduct an investigation into the affairs of any company where the interests of the shareholders and the public so demand.
- To undertake such other activities as are necessary or expedient for giving full effect to the provisions of the Act.
- The Commission also registers Business Names, and Incorporated Trustees as well as provides a wide range of ancillary services.
Benefits Of Business Name Registration With Cac
I. Registering your business name protects your personal assets. In other words, since your corporation is legally considered to be a fully independent legal entity, you cannot be held liable for the debts incurred by your company unless you personally guaranteed the loan.
2. Your company’s ability to expand quickly depends on the resources that are available. When your business name is registered, you can easily attract investors or raise money for your company from the government. Due to the fact that no one will invest in an unregistered business, this demonstrates to potential investors that you already have a formal structure in place.
3. Your company gains respect and credibility by being incorporated. Additionally, it might imply that your company has attained a certain level of reputation and prominence. Besides that, it presents your company as having responsible, effective, and efficient management, which automatically inspires confidence or trust in your clients or customers.
4. When your business is incorporated, it has an unlimited lifespan, meaning that nothing—not even the death of the owner or a change in ownership—can stop it from continuing to operate. The only situation in which a company’s existence may be impacted is if it is formally shut down by a court order. This assertion demonstrates that a company is an entire legal entity. In a nutshell, incorporation gives a business the ability to outlive you and numerous generations.
5. Once you register your business with the nigeria corporate affairs commission, you won’t have to worry about future issues involving your company name because it is the CAC’s responsibility to ensure that it is protected and cannot be used by any organizations or businesses across the nation. To put it another way, incorporating your business will set it apart from other businesses in Nigeria.
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Types Of Businesses You Register With The Nigeria Corporate Affairs Commission
The following are the type of businesses/companies you can register with the Nigeria Corporate Affairs Commission (CAC);
- Private Limited Company (LTD)
- Public Limited Company (PLC)
- Companies Limited by Guarantee
- Unlimited Companies
Requirements For Business Name Registration With Cac
Here are the requirements to register your business name with the Corporate Affairs Commission (CAC);
- National Identification Number (NIN)
- Business Name Availability
- Registration Fee
- CAC Application Form
- Passport Photograph
- Business Documents
- Birth Certificate
- Driver’s License
- International Passport
- Permanent Voters’ Card
Fees For Business Name Registration With Cac
Please note that all CAC registration fees have been gotten from their registration portal. If you are company or a non-governmental organization, I have also provided the CAC registration fees below.
|Limited Partnership (LP)||₦500|
|Private Business Name Registration||₦10,000|
|Incorporation of Company Limited||₦20,000|
|Incorporation of Private/Public Company Limited (Issued share capital of ₦ 1 million or less)||₦10,000|
|Incorporation of Private/Public Company Limited (Issued share capital above ₦ 1 million and up to ₦500million)||₦5,000 for every ₦ 1 million share capital|
|Incorporation of Private/Public Company Limited (Issued share above ₦500million)||₦7,500 for every ₦ 1 million share capital|
Quickly, before I go into details of how to register your business with CAC; I think it’s important I explain how you can get your TIN (Tax Identification Number). As it is one of the requirements for getting your business registered with the Nigeria corporate affairs commission.
Taxpayer Identification Number (TIN) is a unique number set aside or earmarked to identify an individual or company as an appropriate registered taxpayer in Nigeria.
The Nigeria law states that apart from incorporation with the Nigeria Corporate Affairs Commission, every company is to register for tax purposes.
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How To Register For Your TIN
I will be teaching you two methods to get your TIN.
The following are steps to be taken in order to get your TIN registration done online:
Stage 1: visit the joint tax board portal.
Stage 2: input your date of birth
Stage 3: input your preferred search means either BVN, NIN or registered number.
Stage 4: input the digit of the search means you chose in the previous stage. For instance. If you chose NIN in stage 3: enter your NIN digit.
Stage 5: Verify that you are not a robot by clicking the reCAPTCHA box.
Stage 6: Click the search button to get your TIN
Dial *346# to register for your nin if you don’t have one.
Take note, the following will be needed during your NIN registration.
- Mobile Number
- Full Name
- NIN Number (check using *346#)
- Email Address
- Date of birth
Now lets proceed with how to register our business name With the steps listed below:
How To Register A Business Name In Nigeria Online With CAC
Step 1: Select and Reserve a Name (N500) – Making a decision about the name to use for your business is the first step. After which you will then submit an application to the CAC with two alternative names for your business to be sure the name is not already in use or that there isn’t a name that sounds similar to another business, the CAC will search its database.
Then name will be held for you for a 60-day period if the CAC approves it. However, it is anticipated that you will finish the registration process for your Business Name Registration With Cac during this time.
Step 2: Fill out the forms for registering a business name. – Like the previous step, this can also be finished online. The information that must be provided in full includes:
- Business Name as Approved
- Name, Address, Occupation, and other information about the Business’s Owner
- General Description of the Business
- Business Address
- Owners’ Signatures
Step 3: Paying the N10,000 CAC filing fee – This step must also be completed online.
Step 4: Forms Uploading and Submission – After the payment has been accepted, you can upload and submit the forms online. The CAC will review the submissions and, if everything is in order, will inform the registrant that the application has been approved and the Business Name Certificate is ready for pickup.