If you are a businessman or trying to open a business and you are looking for the government body to register it with, then you need not to ask further, the Corporate Affairs Commission is recommended government body for pre -registration and post -registration of business and companies in Nigeria.
Getting your business registered with CAC grants you legal right to do your business.
If you want to know what the corporate affairs commission is all about, it is a regulatory body that is established by an act , to control the incorporation, running, and winding up of companies, business names, and incorporated trustees, in accordance with the provisions of CAMA.(COMPANIES AND ALLIED MATTERS ACT 2020)
Undoubtedly, there are benefits of registering your business with corporate affairs commission, for example it gives your business the legitimacy,and localization status,it is also covers its international status,you can easily do business with foreigners and also utilize same to apply for a visa to travel to any country for business purposes.
Also, it makes your business remain relevant with other government agencies,as they can easily verfiy your records with cac and count on such record of the corporate affairs commission.
This in return instills confidence to your business,and gives your potential customers peace of mind as they are dealing with a reputable business.
Now we have given you a general introduction of corporate affairs commission,we give you an overview of the corporate affairs commission, the laws guiding business name and company registration, and the services to obtain at the corporate affairs commission.
Let’s get started.
Overview of Corporate Affairs Commission
The Corporate Affairs Commission (CAC) of Nigeria was founded in 1990 by Vide Companies and Allied matters Act 1990,It was then Companies and Allied Matters Act no 1 (CAMA) 1990 as amended. Today, its extant provision is cap C20 Laws of the Federation of Nigeria. The Companies and Allied Matters Act 2020.
The Corporate Affairs commission is an autonomous body charged with the obligation to regulate, the arrangement and supervision of companies in Nigeria. The commission carries out most of its functions through accredited members of the following professional body Association of National Accountants of Nigeria, the Institute of Chartered Accountants of Nigeria, the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), and the Nigerian Bar Association (NBA).
To add to that, the head of CAC is known as the Registrar-Genera,and there are atleast a branch in each state of the federation.
Laws Guiding Business Name and Company Registration
Starting a business is a very great idea. But there are laws guiding business names and company registration in Nigeria no matter how small it is. The size of the company depends on your capital and structure
Let’s talk about laws guiding business names;
Whether you begin small or big, certain laws oversee the operations of businesses in Nigeria. Put in mind, the Companies and Allied Matters Act (CAMA) 2020 is the principal legislation governing business name registration in Nigeria. Remember that CAMA 2020 has repealed CAMA 2004.
Other laws are :
Investment And Securities Act 2007.
Investment and Security Rules 2007
Trade Union Act Cap T14
Trade Dispute ACt Cap T8
Fcatory Act Cap F1
Employees Compensation ACt 2010
Bank And other financial institutions Act (BOFIA ACT 2004)
Money Laundering ACt 2004
Constitution of federal republic of Nigeria 1999 as Amended
Below are different types of businesses that can be registered in Nigeria under the provisions of CAMA 2020.
- Business name
- Limited Liability Partnership (LLP)
Non Profit Organisations registrable in Nigeria
Group of Friends Association.
Below is the procedure for business name registration in Nigeria
1. Check the availability of your business name.
2. Fill out the prescribed CAC Form(s)
3. Pay your fees
4. Upload documents
To register your company with. CAC, the following steps should be taken.
1. Get a Company Name
Starting a company without a registered name is like a car without fuel. So, the first step to take is to choose a company name. Then, submit the name to the CAC website for availability check. If not rejected, you are eligible to use it.
2. Prepare the Memorandum of Association
This step is taken by a qualified legal practitioner. He is authorized for preparing the Memorandum of Association. He is also permitted to organize all the related documents based on the objectives of the company you wish to register. Moreover, the lawyer must request the names of the initial subscribers, directors as well as shareholders. Each director or subscriber must be 18+.
3. Fill in the Pre-registration Form
After the document the person is required to fill out a form by the CAC is prepared. The documentation takes place as follows:
- All directors are expected to fill in the particulars of the director form.
- One director is mandated to fill out the Statement of Share Capital and Return of Allotment form.
- A director and the Company Secretary have to fill out the Notice of Situation/Change of Registered Address form.
- A business accredited by the CAC can fill out the Declaration of Compliance with the requirements of the Company and Allied Matters Act (CAMA) form.
4. Pay the Filling Fee and Stamp Fee
Paying the stamp fee and the filing fee is the next step to take. Note that the stamp duty is the tax that is to be paid to the Federal Inland Revenue Services. Once after the payment, the applicant will walk to the Stamp Duty Commission. This is the place where the Memorandum and Articles of Association with some of the incorporation forms are stamped. Immediately after the form is filled and the documents stamped, you can submit them to CAC. The Certificate of Incorporation will be given after or about six weeks from the date of submission.
5. Preparation of the Scanned copy of your Documents.
After paying the filing fee and stamp fee, you can proceed with the preparation of the scanned copy of your documents.
The documents are as follows:
- Memorandum and Articles of Association
- Proof of payment to CAC
- Recognized form of identification for Director(s)/Subscriber(s) and Secretary.
Remember to upload all these documents for processing.
6. The Submission of the Original Documents
This is the final stage in company registration. Once you’ve got to the point, your company is registered.
In case you are inquisitive about the documents required for company registration. Check below;
- A notice of the registered address of your business
- Memorandum and Articles of Association (MAA)
- Receipt of payment of your stamp duties
- Particulars, list, and consent of the first directors of your company
- Statement of compliance by a legal practitioner
- Necessary Requirements to Register a Company in Nigeria
- Your company can have 2 to 50 members.
- The members of your company must be at least 18 years old
- The minimum limit of share capital required for company registration in Nigeria is NGN 10,000.
The Services to Obtain at Corporate Affairs Commission
The services include:
- Business Name Registration.
- Incorporation Trustees Registration
- Registration of Share capital increase, mortgages, etc
- Arrangements of investigations.
- Company management and wind-up.
- Conducting Searches.
- Issuing Certified True Copies of filed documents.
- Sale of all statutory forms and publications of the Commission, etc.
As a business owner or someone who would love to run a legitimate company by registering it to CAC. We have listed the overview of the Corporation Affairs Commission, the law guiding business registration, and company registration. Plus the services obtained by the Corporate Affairs Commission (CAC).
Wish you success as you register your business/company to CAC.
We can assist you in case you need to register your business.