Step-by-Step Guide on CAC registration in Nigeria: DIY

July 18, 2024 BusinessTrumpet

As an aspiring entrepreneur in Nigeria, registering your company is a crucial first step toward realizing your business dreams. While the process may seem daunting, you can successfully navigate the Corporate Affairs Commission – CAC registration system on your own in 2024. This comprehensive guide will walk you through each stage of company registration, empowering you to establish your business entity without relying on costly third-party services. By following these step-by-step instructions, you’ll gain a clear understanding of the requirements, documentation, and procedures involved in CAC registration of your company. Let’s begin your journey toward official business ownership.

Preparing for CAC Registration of your business

Gather Essential Documents

Before initiating the registration process with the Corporate Affairs Commission (CAC), ensure you have all necessary documents ready. Prepare scanned copies of identification documents for directors and shareholders, such as passports photos, National ID, (NIN) cards, Bank verification Numbers (BVN). Additionally, gather proof of address, such as utility bills or bank statements, for all parties involved.

Choose a Unique Company Name

Selecting a distinctive company name is crucial. Conduct a thorough search on the CAC portal to verify your chosen name’s availability. Prepare alternative options in case your first choice is already taken. Remember, your company name should reflect your business identity and comply with CAC naming regulations. To do this search CAC requires you to submit three names.

Sell and buy on Marketdaylive Premium Classifieds

To conduct the search:

Go to the CAC website
Click on public search
Enter you desired business or company names into the search bar to find out if similar names already exists in the CAC registry
Note that CAC does not register the same name twice and do no also register names that are too similar or that will be confusing to other
Bear in mind that your desired business or company name cannot contain words such as “Federal”, “National”, “Regional”, “State”, “Government”: Such names gives the impression your business has some government interest. Also restricted are names like Chamber of Commerce,Municipal,Chartered, Cooperative (cooperatives are registered with the ministry of commerce or ministry of cooperatives in the State and not at the CAC),Building Society,group or Holding. For this type of names you need special clearance from Government departments.

Determine Your Company Structure

Decide on the most suitable company structure for your business. Options include

Business Name
Sole Proprietorship
Partnership
Limited Partnership
private limited company,
public limited company.

Each structure has different requirements and implications for taxation and liability. Consult with a legal professional if you’re unsure which structure best suits your business needs.

Step-by-Step Guide for online CAC Registration

Prepare Your Documentation

Before beginning the online registration process, gather all necessary documents. You’ll need proof of identification, proof of address, and a valid email address. Ensure you have digital copies of these documents ready for upload.

Scan all the documents and save them in a folder in your laptop or computer on on your mobile phone. You will need to upload them later

Registration steps for Business Names

Check for availability of the Business Name (click here). Read more about name reservationand Reserve a new Name (click here)
Complete pre-registration form – CAC-BNo1 and upload relevant registration documents(Online using Company Registration Portal)
Pay filing fee Check the Fees for our Services here
1. Now registration is end-to-end on the COMPANY REGISTRATION PORTAL (CRP) with electronic Certificate of Registration and Certified Extract of registration information

Note: Individual/Proprietors can register business names without the services of the legal practitioner, chartered Accountant or Chartered Secretary.

Registration steps for Limited Liability Companies

For the step by step guide on how to register a limited liability company visit the CAC website HERE

Access the CAC Registration Portal

Visit the official Corporate Affairs Commission (CAC) website.
Click on Online registration
Navigate to the company registration section and create an account if you haven’t already. Log in to your account to begin the registration process.

Complete the Application Form

Fill out the online application form with your company’s details. This includes your proposed company name, business address, and information about directors and shareholders. Double-check all entries for accuracy before proceeding.

Make Payment and Submit

Once you’ve completed the form, you’ll be directed to make the required payment. Use the provided online payment options to complete this step. After payment confirmation, submit your application for processing. You’ll receive a confirmation email with further instructions and your company’s registration number upon approval.

Documents You’ll Need for Company CAC Registration

Essential Documentation

To successfully register your company with the Corporate Affairs Commission (CAC), you’ll need to gather several crucial documents. First and foremost, prepare a completed application form, which serves as the foundation of your registration process. You’ll also need to submit a memorandum and articles of association, outlining your company’s structure and operational guidelines.

Identification and Proof

Ensure you have valid means of identification for all company directors and shareholders. This typically includes government-issued photo IDs such as driver’s licenses or passports. Additionally, you’ll need to provide proof of address for the company’s registered office, which can be in the form of utility bills or lease agreements.

Financial Documentation

Prepare evidence of paid-up share capital, usually in the form of a bank statement or deposit slip. You may also need to submit a statement of share capital and returns on allotment of shares. These financial documents demonstrate your company’s initial capital structure and compliance with regulatory requirements.

If it is a business name you will not need these

Completing the Company CAC Registration Forms

Gather Required Information

Before you begin, ensure you have all necessary details at hand. This includes your proposed company name, business address, directors’ information, and share capital structure. Having these readily available will streamline the form-filling process.

Accuracy and Consistency

When completing the registration forms, precision is paramount. Double-check all entries for accuracy and consistency across different sections. Pay particular attention to names, dates, and addresses. Even minor discrepancies can lead to delays or rejection of your application.

Seek Professional Guidance

While it’s possible to complete the forms independently, consider consulting a legal professional or company formation expert for complex structures. They can provide valuable insights on specific sections, ensuring compliance with current regulations and avoiding potential pitfalls in the registration process.

Remember, thorough and accurate completion of these forms is crucial for a smooth company registration experience with the Corporate Affairs Commission (CAC) in 2024.

After Submitting Your Company Registration Application

Application Processing

After submitting your company registration application to the Corporate Affairs Commission (CAC), the process enters a crucial phase. The CAC will review your application thoroughly, ensuring all required documents are present and correctly filled out. This review process typically takes 3-5 business days, but may extend depending on the current workload.

Status Updates

During this period, it’s advisable to regularly check the status of your application through the online CAC Registration portal. You’ll receive notifications via email or SMS about any updates or requirements. Be prepared to respond promptly to any requests for additional information or clarification to avoid delays in processing.

Final Steps

Once your application is approved, you’ll receive a notification to make the final payment for your certificate of incorporation. After payment confirmation, you can download your electronic certificate directly from the online CAC Registration portal. This document serves as official proof of your company’s registration and should be safely stored for future reference.

Fees and Payments

When registering your company with the Corporate Affairs Commission (CAC), you’ll need to be prepared for various fees and payments. Understanding these costs upfront will help you budget accordingly and avoid surprises during the registration process.

For the fees and charges collected by CAC, check this at their official website HERE

Registration Fees

The CAC charges a base registration fee, which varies depending on the type of company you’re registering. For business names, this fee is typically around ₦10,000. However, additional charges may apply for services such as name reservation or expedited processing.

Stamp Duty

You’ll need to pay stamp duty on your company’s share capital. This fee is calculated as a percentage of your declared share capital and is payable to the Federal Inland Revenue Service (FIRS).

Professional Fees

While you can register your company yourself, you may opt to engage professionals such as lawyers or accountants to assist with the process. These services come with additional costs, which you should factor into your budget.

Payment Methods

The CAC accepts various payment methods, including online transfers, bank drafts, and certified cheques. Ensure you use the correct payment channels to avoid delays in your registration process.

How to use the CAC Registration online forms

Accessing the forms

To begin your company registration process, visit the official CAC website and navigate to the online registration portal. You’ll need to create an account if you haven’t already. Once logged in, select the appropriate form for registering a new company.

Filling out the forms

Complete all required fields with accurate information about your company, including the proposed name, business address, and details of directors and shareholders. Be meticulous in providing correct data to avoid delays. The online system will guide you through each section, ensuring you don’t miss any crucial details.

Submitting and payment

After filling out the forms, review all entries carefully. Once satisfied, submit the forms electronically. You’ll then be directed to make the necessary payments for registration fees. The CAC accepts various payment methods, including credit cards and bank transfers. Keep your payment receipt for future reference.

Next steps

Post-registration activities

After successfully registering your company with the CAC, there are several important steps to take. First, obtain your Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS). This is crucial for tax compliance and business operations. Next, register with the National Social Insurance Trust Fund (NSITF) to ensure proper employee benefits and protections.

Compliance and reporting

Familiarize yourself with ongoing compliance requirements. File annual returns with the CAC Registration to maintain your company’s good standing. Keep accurate financial records and prepare for regular tax filings. Consider engaging a professional accountant to assist with these tasks.

Business development

With your legal foundation in place, focus on growing your business. Develop a comprehensive business plan, if you haven’t already. Explore funding options, such as loans or investors, to support your company’s growth. Network with other entrepreneurs and join relevant industry associations to stay informed about market trends and opportunities.

Conclusion

As you embark on your journey to CAC registration of company in 2024, remember that attention to detail and thorough preparation are key. By following this step-by-step guide, you’ve equipped yourself with the knowledge to navigate the process confidently. While registering a company independently may seem daunting, the satisfaction and cost savings make it a worthwhile endeavor. Stay organized, double-check all documentation, and don’t hesitate to seek clarification from the CAC if needed. With persistence and patience, you’ll soon have your business officially registered, opening doors to new opportunities and growth. Take pride in your accomplishment and use this foundation to build a successful enterprise.

How to use the CAC Registration online forms

Accessing the forms

To begin your company registration process, visit the official CAC Registration website and navigate to the online registration portal. You’ll need to create an account if you haven’t already. Once logged in, select the appropriate form for registering a new company.

Filling out the forms

Submitting and payment

Next steps

Post-registration activities

Compliance and reporting

Familiarize yourself with ongoing compliance requirements. File annual returns with the CAC to maintain your company’s good standing. Keep accurate financial records and prepare for regular tax filings. Consider engaging a professional accountant to assist with these tasks.