Starting off a business will necessarily require certain business transactions. Setting up a business in a foreign land can be a daunting process because you are basically moving into a terrain that you know truly little about. When it comes to Nigeria, the process is straightforward, and the entrepreneurs can set up their businesses in Nigeria quite systematically. This system is made because of the Corporate Affairs Commission (CAC) that was implemented to safeguard your business in Nigeria.
The main purpose of CAC :
The CAC measures two-factor authentication: 1. What you have with you (manually) and 2. What you have in your mind (PIN). This CAC technology enhances physical and logical security.
Who is competent for the CAC card?
Active duty military personnel, Selected Reserve, DoD civilian employees, and eligible contractor personnel are eligible.
What might happen if you lose your CAC card?
If you lose your card, you shall need to present documentation from the local security office confirming that the CAC card has been reported lost or someone has stolen it.
Coming to the point of registering your business with CAC, it is safeguarding your business name from being used by another person.
Here is how you can register your business with CAC :
- Select A Company Name: Being an individual, you must choose a name for your company because identity is all about by which name it will be called. In the case of Nigeria, after choosing a congruous name, you should submit it to the CAC website* to see for its availability. Generally, two names are submitted in case one of them is not available. It normally takes a week to complete this process.
- Ripen the Memorandum of Association: A lawyer takes the responsibility to prepare the MOA and other documents based on the objectives of the company you wish to register. Next, he should request the names and details of the initial directors and shareholders who must be above 18, having a sound mind, and have not been convicted of any crime earlier.
- Pay CAC Filing Fees: The payment can be done online or in person. Though this fee is changeable in the future, as of now it is #10,000.00
- Submission of Forms: After the approval of the payment, you can submit the forms online through the Company Registration Portal (CRP).
These are the step-by-step procedures to register with CAC. Now here is why you need to register your business with CAC :
Ensures your Financial Assistance :
As a registered legal entity that can ask for a petition, money lenders and investors can be confident to provide you with the necessary financial assistance. You can apply for loans and allowances also.
Builds a Professional Image :
Registering your company with CAC gives you a much more professional image. It emphasizes that the business has longevity and a legacy that can be trusted.
Protects your Business :
It ensures the protection of your personal image as the company has its own identity. Also, it builds confidence in you to go ahead and get the kind of clients you are searching for to promote your business.
Build Legacy :
When your business is registered, even after your death or if you become incapacitated, your business will run at the same pace. Having a good reputation for business, your clients will show much interest and trust in you. So, this shows why you need to register your business with CAC.
Customers you have never worked with before need surety that you are a legitimate businessman. This makes you eligible to receive the contracts that you will not receive if you don’t register. CAC is one of the first requirements you would need to fulfil at the first stage of your bank account registration.