Register Your Business With CAC In 24 Hours

Are you a business owner in Nigeria looking to register your business and ensure compliance with the Corporate Affairs Commission (CAC)? Look no further! In this guide, we’ll take you through the step-by-step process of registering your business through the CAC Pre-Incorporation portal. By following these simple instructions, you’ll be able to complete the entire registration process within 24 hours and enjoy the benefits of an officially recognized and protected business. So let’s dive in and get your business on the right track!

1. Account Creation

To begin the registration process, the first step is to create an account with the CAC. Visit the CAC Pre-Incorporation website (https://pre.cac.gov.ng/register/new) and click on the ‘Register’ button. You can create an account using either your mobile phone number or your National Identification Number (NIN). The account creation process is quick and takes less than 10 seconds.

 2. Business Name Selection

Choosing a unique and appealing name for your business is crucial. Consider the values, industry, and customer appeal when selecting a name. To ensure that your chosen name is available, follow these steps:

– Go to the CAC’s official website (cac.gov.ng).
– Scroll down and click on “Public Search.”
– Enter the complete name of the company in the search box and click on “Search.”

If the search result displays the full company name, RC number, and office address, it means that the name is already registered. In this case, you’ll need to choose a different name that is available.

 3. Business Name Reservation

Once you have confirmed the availability of your chosen business name, you can proceed with reserving it on the CAC website. Fill out the necessary form and make the required payment, which includes ₦500 for name reservation, ₦5,000 for name reservation with restricted words, and ₦10,000 for a Certified True Copy (CTC) of Registration Documents. After completing the payment, you will receive an Availability Code.

4. Business Pre-Incorporation

Using the provided Availability Code, complete the registration process on the CAC Portal. You will need to provide details such as your business name, address, proposed business activities, and upload digital copies of relevant documents. Valid means of identification, proof of address, and a business plan may also be required. It’s worth noting that for sole proprietorships, the business plan is optional.

Some of the documents that need to be uploaded include:

– Form CACC 1 for name reservation and availability.
– Names and addresses of the parties involved in incorporating the company.
– Passport photographs and means of identification for every director.
– Statutory declaration of compliance by a legal practitioner.
– Company name and address.
– Principal business office address.
– Filing with the Federal Inland Revenue Service for tax.
– Any other necessary documents or fees as required by the commission.

You can conveniently upload these documents online using the Company Registration Portal (https://pre.cac.gov.ng/register/new).

 5. Payment of Fees

After uploading the relevant documents, you will be directed to make the necessary payment. Once the payment is completed, you can expect to receive an electronic certificate of registration and a certified extract registration within three to five days. The entire registration process is conducted through the company registration portal (CRP).

Cost of Registering Your Business with the CAC

The registration fees may vary, but according to CAC-accredited registration lawyers, the cost of registering a business typically ranges from ₦20,000 to ₦40,000. For limited liability companies, the cost can range from ₦70,000 to ₦100,000, depending on the share capital.

 Penalties for Non-Compliance with CAC

Failure to comply with CAC regulations can result in penalties. The penalties for non-compliance on a one-off basis are as follows:

– Small company: ₦5,000.
– Company Private other than small: ₦10,000.
– Company limited by guarantee: ₦10,000.
– Public Company: ₦25,000.
– Limited Liability Partnership (LLP): ₦10,000.
– Limited Partnership (LP):₦10,000.

 Benefits of Registering with CAC Pre-Incorporation

1. Legal Protection: Registering your business with the CAC provides legal protection for your business name and brand. It ensures that no other business can use the same name or operate in the same industry, protecting your intellectual property rights.

2. Business Legitimacy: Registering your business with the CAC adds credibility and legitimacy to your brand. It shows potential customers, clients, and partners that your business is recognized by the government and operates within the legal framework. This can help build trust and attract more opportunities for growth.

3. Access to Funding: Many financial institutions and investors require businesses to be registered with the CAC before providing funding or investment opportunities. By registering your business, you open doors to potential funding sources and partnerships that can fuel your business’s growth.

4. Business Expansion: Registering with the CAC allows you to expand your business beyond its current scope. It provides a solid foundation for future growth and expansion plans, enabling you to operate in multiple locations, engage in international trade, and access government contracts.

5. Avoiding Legal Hassles: Non-compliance with CAC regulations can lead to legal issues and penalties. By registering your business, you ensure that you are operating within the law and avoid unnecessary legal hassles that can disrupt your operations and damage your reputation.

6. Tax Compliance: Registering your business with the CAC makes it easier to comply with tax regulations. You will receive a Tax Identification Number (TIN) which is required for filing tax returns and conducting business transactions. This helps you avoid tax evasion charges and maintain a good standing with the tax authorities.

FAQs

1. Do I need a lawyer to register my business with the CAC?

While it is not mandatory to hire a lawyer, it is highly recommended to seek professional assistance. A lawyer can guide you through the registration process, ensure that all necessary documents are in order, and help you understand the legal implications of registering your business.

2. How long does the registration process take?

With the CAC Pre-Incorporation portal, the registration process can be completed within 24 hours, provided all required documents are uploaded correctly and payment is made promptly.

3. Can I change my business name after registration?

Yes, it is possible to change your business name after registration. However, there are specific procedures and fees involved in changing the name, and it is advisable to consult with a lawyer to ensure a smooth transition.

4. What is the difference between a sole proprietorship and a limited liability company?

A sole proprietorship is a business owned and operated by an individual, while a limited liability company (LLC) is a separate legal entity distinct from its owners. The primary difference is in the level of liability protection and the legal structure of the business.

5. Can I register a business as a foreigner?

Yes, foreigners can register a business in Nigeria. However, additional documentation and requirements may apply, and it is advisable to consult with a lawyer or business registration expert to ensure compliance with all regulations.

Conclusion

Registering your business with the Corporate Affairs Commission (CAC) is a crucial step towards establishing a legitimate and protected business in Nigeria. By following the steps outlined in this guide, you can navigate the CAC Pre-Incorporation process with ease and enjoy the numerous benefits of official recognition, legal protection, and access to funding opportunities. Stay in character and ensure compliance by registering your business today!