All you need to know about registering your business name in Nigeria; including cost, requirement, and more.
Running a business in Nigeria or anywhere requires that you get your business registered. in this post, we will be looking at how to register your business with CAC in 2021 and beyond.
The process might be slightly different from other countries, you can contact your country’s company house to find out the process. So when we talk about how to register your business with CAC, we are simply talking about the process of incorporating your business with the Corporate Affairs Commission of Nigeria (CAC).
Getting Your Business Registered With CAC: What You Need Know
Among the first steps you must take towards setting up your business in Nigeria is registering with Nigeria’s Corporate Affairs Commission (CAC).
This will not only establish your business as an eligible business but will also help you secure your business name so that it will not be taken by your competitors.
Perhaps the story about this registration appears vague to you, do not worry because we have got you covered.
In this post, you will learn all you should know about getting your business registered with CAC. What are the benefits of registering your business with the Corporate Affairs Commission?
Before we explore the registration procedures, let us throw more light on why you should take this subject seriously.
With your business certificate, you can open a corporate account for your business and this will help you will enjoy the trust of your business partners since you are registered with the national authority. As a registered business, you can easily acquire business loans and grants, unlike unregistered businesses.
Procedures to Register your Business with CAC
You can also enjoy the privileges of getting interns from NYSC or any other national internship program if you are a registered business. It unblocks the barriers that could hold off investors in your business.
Acquiring a business visa to any country would not be a hitch. Registering your business with CAC instills a sense of responsibility in you, and makes you more responsible to reach your business goals.
When you register your business as a Limited Liability Company, you will not be personally held responsible for any accident or loss of business. You will enjoy the project with regards to loss of personal properties in case of business failure.
If you dream of starting a business that will flourish, even when you are not there, registering your business will help you achieve that.
Reserve Your Business Name
Securing a unique business name is the first thing you would want to do. After you have carefully thought out a name for your business, promptly
Go to the CAC website and sign up. https://www.cac.gov.ng
Sign up by filling your details in the application form.
Click the “Register” button when you are done.
Verify your email from the link that will be forwarded to your registration email.
After verification, login to your account using the details you opened the account with (email and password)
When you are logged in, click on the “Name Reservation” button and choose “New Name Reservation”
On the next page, choose the type of company and type in the name you want to register.
Enter your first choice of name in the “Option 1” field, and your second choice of name in the “Option 2”.
Save and continue until you complete the entire form.
Proceed to pay a Name Reservation fee of N500, when you have confirmed that the details you entered are correct.
It will take some time before your name will be approved. So, be patient while you wait.
When it has been finally approved, copy out your “Availability Code” because you will need it later on.
The registration procedure for a private company differs from that of a public limited company. So, be sure of the type of business you want to register and choose accordingly.
We advise that you enter a second name so that if the first is rejected due to some reasons, you can settle for the second one.
Why CAC Could Reject Your Business Name
Your proposed name would be rejected by CAC if:
It is identical with an already registered business, or if the name has already been reserved by another business
It has unacceptable terms like National, Government, Federal, Holdings, and some others.
The name is capable of misleading the public, in respect to the context of the business.
It will violate the trademark of already existing businesses, except there is consent from them.
Complete The Pre-Registration Form
When you have reserved your business name, your next step would be to fill the form CAC-BNo1, otherwise called the pre-registration form.
Log in to your account
On the menu, click “Name Reservation” and choose Name Reservation from the sub-menu.
Select the name you just registered.
On the menu, click the “Company Registration” button. Select “New Registration” on the sub-menu
Fill your business details with the required fields.
Add directors, shareholders, and fellow business owners if your business has such. Click continue when you have added all.
Complete form by choosing your CAC branch and how many copies of the Memorandum of Articles of Association (MOA) and Application for registration your business needs.
Pay The Filing Fee
After verifying the details you have entered, proceed to make an application payment with Remita.
Click “proceed to payment”
You will be taken to the Remita page. Generate your RRR code.
You can pay at any bank in Nigeria with your RRR code. Or,
You can pay with your debit card. Simply enter your card details in the required fields.
Pay the required sum.
Your payment receipt will be automatically generated. Login to your profile to see your receipt.
Note: The amount you will pay for registration and MOA varies across different types of businesses. Nonetheless, it ranges from N20,000 to N30,000.
On another hand, before you can access your application form and Memorandum of Articles of Association, you will pay stamp duty charges to the Federal Inland Revenue Service (FIRS).
Since every member of your business board (if you have such) requires copies of the documents, the fees will be generated individually.
So, the more board members for your new company, the more you pay. To pay this fee,
Click the “Stamp duty assessment” button, just by the side of your business name.
Generate your RRR code and proceed to pay in the bank, or with your debit card.
If you are using your card, repeat the payment process to complete the payment.
Download Your Application Documents
After your stand duty payment has been confirmed and electronic stamping is done on the documents, they will be ready for you to download. To download, click on the “Document’s” button and it will be downloaded on your computer/device.
The documents you will download are:
Memorandum of Articles of Association
Application for Registration
After this, your business registration with CAC is considered complete.
We can do all the heavy lifting for you while you focus on the most important thing-scaling your business. Contact us right now and we will help with your business registration. Email: firstname.lastname@example.org