How To Register Business Name With CAC in Nigeria

As a Nigerian entrepreneur, registering your company name is essential. Every type of business, from small to large, can enjoy enormous benefits by writing a business name with the Corporate Affairs Commission (CAC). This post covers all the necessary information and the ultimate guide to registering your business name with CAC in Nigeria.

The Benefits of registering your company name with the Corporate Affairs Commission (CAC)

The Corporate Affairs Commission is referred to as the CAC. It is the Nigerian government agency overseeing and controlling businesses in Nigeria. With the adoption of the Companies and Allied Matters Act in 1999, it was established as an entity. There are several advantages to registering a company name with CAC. The benefits that come with registration are the following:

Certificate of Incorporation

Once registration is complete, registering a business name with CAC includes incorporation, which is useful for authentication. Additionally, the CAC offers e-certificates that may now be utilized anywhere globally without requiring physical presence. It is unnecessary for a business owner or agent to personally walk in and acquire the certificate of registration and incorporation, which may be laborious, expensive, and time-consuming.

Making the Business a separate Legal Entity

When you go to the Corporate Affairs Commission (CAC) and register your company, it becomes a separate legal entity. It makes the business permitted in the eyes of the government. The law views an incorporated business as a distinct entity that will function independently of its members or other controlling parties. This implies that it can engage in financial activities and procedures separately and be sued.

Helps in Attracting New Customers

When a firm is registered, it becomes easier and more likely to attract investors. Investors consider investing in a registered firm safer than unregistered businesses that lack a legal framework. This approach makes raising substantial finance easier.

Builds a Bridge of Trust between the Company and the Customers

It may be seen as a public relations tactic. When a company registers with CAC, business perception and brand image improve. Customers are also more confident doing business with a written, trackable organization, which increases their faith in the company. Instead of paying into a personal account, they feel more secure and at ease making payments for goods and services into a business account bearing the company’s name.

Legal Protection from All Kinds of Lawsuit

The chance of a firm’s name being used fraudulently is reduced when it is formed with the Corporate Affairs Commission since the business name is shielded from use by any other company in Nigeria.

Make it easier to get Loans.

A firm that has incorporated with the CAC finds it simpler to obtain loans. Establishing credibility and trust raises lenders’ and investors’ confidence in a company.

Avoid any Complications

In Nigeria, registering a business name is required by law. By doing so, companies may prevent potential problems, including penalties and imitation.

Protects Businesses From Liability

Since the firm is now a separate legal entity, owners are shielded from having to repay debts with their assets when registering as a private liability company. Companies may register as a public limited liability company, a private limited liability company, a partnership, or a sole proprietorship.

Get Connected with CAC in Nigeria

Thank goodness the registration procedure is no longer entirely manual. Even if you like to be mobile, it may be easily completed from the convenience of your house or anyplace else. But it requires a few deliberate and cautious steps:

Think of A Unique Name

The owner of a business must choose a name for their enterprise. Of course, a business owner must consider several criteria, including the sector in which the organization operates, the consumer base, and—perhaps most importantly—whether the chosen name is already used. Here on the CAC site, entrepreneurs may look up the names of the businesses they are considering.

Submit your Company Name

A company name can be applied for once it has been shown that it is not already used. If it is accepted, the business name is reserved for 60 days. During this time, the business owner must finish the registration procedure. If you’d like, you may do it online at the official CAC website or in person.

Prepare The Memorandum and Articles of Association

Depending on the nature of the business, owners must create an article of association and memorandum. This is a very legal stage, and legal counsel will be required. The first directors’ or partners’ names, as well as the names of the shareholders, if any, are needed for the paperwork that the lawyer produces. Participants in the paperwork or agreement must be eight or older. Additionally, individuals must have legitimate identification documents, such as identity cards, to prove their identities. The CAC will be looking into all of these.

Fill out the Incorporation Application

A further step in registering a business name with the CAC is obtaining and completing the form of incorporation. This is done following the completion and processing of the articles of organization and memorandum. It is anticipated that the form will be submitted with accompanying paperwork. A secretary or attorney may also be required for this.

You need to fill out the following forms:

• Form 7: The directors must fill this out and include all their personal information.
• Form 2: A director completes this, which contains the return of the allocation form and share capital.
• Form 3: The notification of circumstance or change of address form will be filled out by the company’s secretary and director.
• Form 4: This statement of conformity complies with the CAMA form’s standards. It is filled out by a different person or organization that CAC has recognized.

Submit the Forms:

The paperwork must be sent after the paperwork above has been filled out either online or in person and the associated fees have been paid. Subsequently, the CAC will review the documents and tell the entrepreneur if they are approved. Usually, the complete procedure takes one week.

The business name is then available for pickup. But the length of time might also rely on trailing factors like bureaucracy, workload, a small number of employees, the location or distance from the business, or the entrepreneur’s lack of personnel.

Documents

1. The business’s suggested name.
2. The business’s intended goal
3. The articles of association and the business memorandum
4. An explanation of the authorized capital for shares
5. Form CACC 1, Name availability and reservation.
6. Names and addresses of the people who formed the business
7. Every director should have two current passport photos and a reliable form of identity.
8. Statutory certification of adherence from a lawyer.
9. Company secretary’s name and address
10. The main office’s address
11. Filing a tax return with the Federal Inland Revenue Service.
12. Whatever more paperwork or payments the commission could require to comply with a legal requirement.

Conclusion

Registering a business name with CAC is one step your company may take to go ahead positively. Additionally, it might increase revenue, client confidence, and brand trust. Since most procedures now occur online, registering a business name is often not stressful. Any business owner, agent, or entrepreneur may find the process simpler with the knowledge contained in this article.