A Complete Guide for CAC Registration of Business Names, Companies, and Incorporated Trustees
Starting a business in Nigeria requires proper registration with the Corporate Affairs Commission (CAC), ensuring legal compliance and legitimacy. Whether you’re registering a business name, a limited liability company, or an incorporated trustee, understanding the processes involved will help streamline the setup of your venture. At CACRegistration.com, we are dedicated to guiding you through this process with ease.
| For registration of business name, company and incorporated trustees, call us or send WhatsApp message to 08155554892. |
Why Register Your Business with CAC?
Registering your business with CAC offers several benefits, including:
- Legal Recognition and Protection
By registering with the CAC, your business becomes a legally recognized entity. This means that it can enter into contracts, sue or be sued, and conduct business in its registered name. A registered business name provides you with legal protection, preventing others from using your business identity.
This official recognition builds credibility and trust with your customers, suppliers, and business partners. It also protects your brand, ensuring no one can legally operate under the same name.
- Access to Funding and Business Loans
For entrepreneurs and small businesses, access to financial support is often crucial for growth. Company registration in Nigeria is typically a prerequisite for accessing loans, grants, and other forms of financing. Registered businesses are often perceived as more stable and trustworthy by financial institutions.
With a CAC-registered business, you can apply for loans and grants, and potential investors will view your company as a credible and legal entity worthy of investment.
- Business Structure and Continuity
When you incorporate your company or register as Incorporated Trustees, you give your business a formal structure. Incorporation allows for the existence of a separate legal entity, meaning your business can outlive its founders. This structure ensures continuity, even in the absence of the original owners.
A well-structured company can transition easily between owners or directors, and its operations can continue uninterrupted, which is important for long-term success and legacy building.
- Brand Credibility and Trust
Consumers are more likely to trust and do business with a registered company. Registering your business with the CAC signifies professionalism and trustworthiness, which can help you attract more customers and business partners.
Building a brand that consumers can trust is vital to growing your business. When you register a business in Nigeria, you position yourself as a credible entity, which increases consumer confidence and loyalty.
- Compliance with the Law
Operating a business without registering it with the CAC is illegal in Nigeria. The law mandates that all businesses should be registered, whether it’s a sole proprietorship, partnership, or incorporated company. Complying with these regulations helps you avoid potential fines and legal issues in the future.
Avoiding penalties and adhering to legal requirements not only keeps you on the right side of the law but also ensures that you can operate your business without fear of shutdowns or legal disruptions.
- Ability to Scale and Grow
A registered business can scale up more easily. Whether you’re considering expansion into other states or even international markets, a CAC business registration facilitates smoother operations. Having the legal documents to show potential partners and clients opens doors to partnerships and larger contracts.
When you’re ready to take your business to the next level, having a legally registered company provides the foundation you need to grow without constraints.
- Tax Identification and Benefits
Once your business is registered, you can obtain a Tax Identification Number (TIN), which is required for business transactions such as opening a corporate bank account and dealing with government contracts. In addition, a registered business can benefit from tax incentives and government programs aimed at supporting entrepreneurs.
With a registered business, you avoid issues related to tax evasion while positioning yourself to take advantage of tax benefits that can reduce your operational costs.
- Opening a Corporate Bank Account
A registered business is required to open a corporate bank account. Corporate accounts provide professionalism and transparency when dealing with clients and suppliers. Furthermore, it separates personal finances from business finances, which is critical for proper accounting.
Operating with a corporate bank account demonstrates to your customers and suppliers that you are serious and organized, which builds trust and helps in financial management.
Types of CAC Registration Available
When setting up a business in Nigeria, you have three main options:
1. Business Name Registration
2. Company Registration (Private or Public)
3. Incorporated Trustee Registration
Each type has its unique requirements and benefits. Let’s explore them in detail:
-
Business Name Registration
A business name is ideal for small business owners, sole proprietors, and partnerships. It is a simpler form of business structure and is often preferred by entrepreneurs who want to keep things minimal while still operating legally.
Who Should Register a Business Name?
- Sole proprietors who want to operate under a name different from their personal name.
- Partnerships where two or more individuals conduct business jointly.
- Freelancers and artisans looking to formalize their operations.
Requirements for Business Name CAC Registration
- Two proposed business names.
- Description of the business activities.
- Address of the business.
- Full details of the business proprietor(s).
- Payment of CAC registration fees.
At CACRegistration.com, we provide seamless assistance to help you register your business name, ensuring all necessary documents are submitted correctly.
-
Company Registration
When your business begins to grow, or if you plan to operate on a larger scale, registering a company might be a more suitable option. In Nigeria, there are different types of companies you can register under the CAC, including:
- Private Limited Company (Ltd): This is the most common form of company registration, especially for small to medium-sized businesses. Shareholders have limited liability.
- Public Limited Company (PLC): This type is typically for larger businesses intending to raise capital through public stock offerings.
Benefits of Registering a Limited Liability Company (Ltd)
- Limited Liability: The owners’ liability is restricted to the amount they invested in the business.
- Separate Legal Entity: The company is considered a distinct legal entity, which means it can own assets, sue, and be sued in its own name.
- Funding Opportunities: Registered companies have access to more funding options, including loans and investments.
Requirements for Company CAC Registration
- Two proposed company names.
- One or more shareholders.
- At least one directors.
- Full details of the shareholder(s)/director(s)
- Share capital/Share allotment
- Company name reservation.
- The registered office address of the company.
- Memorandum and Articles of Association.
Need help with company registration? At CACRegistration.com, we specialize in helping entrepreneurs set up their companies, whether it’s a private or public limited company. You can contact us here
-
Incorporated Trustees Registration
For non-profit organizations, churches, clubs, and other associations, Incorporated Trustees is the registration option to consider. This type of structure allows organizations to operate legally as non-governmental entities.
Who Should Register as Incorporated Trustees?
- Religious organizations: Churches, mosques, and other faith-based groups.
- Non-Governmental Organizations (NGOs): Charitable organizations aiming to provide social, economic, or environmental support.
- Associations: Clubs, trade unions, and professional associations.
Requirements for Incorporated Trustees Registration
- Three proposed name of the organization.
- Objectives of the organization.
- Names, addresses, occupations, and other details of the trustees.
- Constitution of the organization.
- Minute of the meeting
- Completed trustee declaration form
- Publication of notices in two national newspapers.
Our team at CACRegistration.com ensures that all legal requirements for Incorporated Trustees registration are met so that your organization can focus on making a positive impact.
Differences Between Business Name Registration and Company Incorporation in Nigeria
Starting a business in Nigeria comes with many important decisions, one of which is determining the legal structure of your enterprise. Two common options for entrepreneurs are Business Name Registration and Company Incorporation. While both forms of registration are recognized by the Corporate Affairs Commission (CAC), they have significant differences that could affect your business in terms of liability, taxation, and overall operation. This article explores the key differences between these two legal structures to help you make an informed decision for your business.
Legal Identity
One of the main differences between a registered business name and a company lies in their legal identity.
Business Name: A business name is registered by a sole proprietor or partners, and the business does not have a separate legal entity from its owners. This means that the business and its owner(s) are considered the same entity in the eyes of the law. If the business faces financial or legal issues, the owner is personally liable.
Company Incorporation: When you incorporate a company, it becomes a separate legal entity distinct from its owners (also called shareholders). A company can enter into contracts, own property, sue or be sued independently of its owners. The separation between the company and its owners provides protection to the shareholders against personal liability for business debts, beyond their investment in the company.
Liability
Another key difference between business name registration and company incorporation is the extent of liability borne by the owner(s).
Business Name: The owner(s) of a business name have unlimited liability. This means that if the business incurs debt or is sued, the personal assets of the owner(s), such as houses, cars, or savings, can be used to settle the business debts or liabilities.
Company Incorporation: A company, especially a limited liability company (LTD), provides limited liability protection to its owners. Shareholders are only responsible for the company’s debts up to the amount they have invested. Their personal assets remain protected in the event of financial trouble or litigation against the company. This is a major reason why many business owners choose incorporation.
Ownership Structure
The ownership structure is another significant difference between business name registration and company incorporation.
Business Name: A business name is often used by sole proprietors or partnerships. In the case of a sole proprietor, one person owns and runs the business. For a partnership, two or more individuals share ownership. There is typically no formal separation between the owner(s) and the business.
Company Incorporation: A company has a more complex ownership structure. In the case of a private limited company, ownership is shared among shareholders, with the possibility of having a board of directors to oversee business operations. A company may be privately owned or publicly listed, with the number of shareholders varying based on the type of company. The ownership is more formalized through shareholding.
Taxation
Taxation differs significantly between a registered business name and an incorporated company in Nigeria.
Business Name: For business names, the profits earned by the business are taxed as personal income. The business owner(s) must file personal income tax returns with the Federal Inland Revenue Service (FIRS). In the case of partnerships, each partner is taxed on their share of the profits. The tax rates applied are progressive, based on individual income.
Company Incorporation: Companies, on the other hand, are taxed as separate legal entities. They are required to pay Company Income Tax (CIT), which is levied on the company’s profits. In addition to CIT, companies may also be liable for other taxes, such as Value Added Tax (VAT) and Withholding Tax. The corporate tax rate in Nigeria is generally lower than the highest personal income tax rate, which can be an advantage for businesses generating substantial profits.
Raising Capital
When it comes to raising capital, incorporated companies have more options than businesses operating under a registered business name.
Business Name: A sole proprietorship or partnership may have limited options for raising capital. Business owners often rely on personal savings, loans, or contributions from partners. Since the business does not have a separate legal identity, it cannot issue shares to raise equity. This can limit its ability to grow or expand quickly.
Company Incorporation: A company, particularly a private limited company, has more flexibility in raising funds. It can issue shares to investors in exchange for capital, making it easier to attract investment. A public limited company can even offer shares to the general public through the stock exchange, further increasing its ability to raise large sums of capital. Incorporation opens up various avenues for securing business funding.
Perpetual Succession
The concept of perpetual succession is an important advantage of company incorporation over business name registration.
Business Name: Since the business and its owner(s) are the same legal entity, the business usually ceases to exist upon the death or retirement of the owner(s). If a sole proprietor passes away, the business might face dissolution unless explicitly passed on through inheritance.
Company Incorporation: An incorporated company has perpetual succession, meaning it can continue to exist even if the shareholders or directors change. The company’s existence is not tied to the life of any one person, which makes it more stable and enduring over time. This makes it easier to pass on a company to new owners, either through sale or inheritance, without affecting the company’s legal standing.
Regulatory Requirements
The regulatory obligations for a registered business name are significantly different from those for a company.
Business Name: A registered business name typically has fewer regulatory requirements and formalities. Once registered, business names have minimal ongoing compliance obligations, aside from renewing the registration periodically and maintaining proper business records. This makes it an attractive option for small businesses or sole proprietorships with limited resources.
Company Incorporation: Incorporation comes with more stringent regulatory requirements. Companies must file annual returns with the CAC, hold regular board and shareholders’ meetings, and maintain detailed financial records. Failure to comply with these regulations can result in fines or penalties. While the administrative burden is higher for incorporated companies, the structure provides benefits such as greater legitimacy and credibility.
Transfer of Ownership
Ownership transfer is handled differently between business names and incorporated companies.
Business Name: The transfer of a business name is usually more difficult and less formal. If a sole proprietor wants to sell the business, the process can be cumbersome since the business and the owner are one entity. The new owner would need to re-register the business in their name, and this can be time-consuming.
Company Incorporation: In a company, ownership can be easily transferred by selling shares to new shareholders. This process is straightforward, particularly in private limited companies where shareholders can transfer ownership through the sale of shares without disrupting business operations. This makes it easier to bring in new investors or sell the company in the future.
Suitability for Expansion
If you have plans to scale your business, choosing between a business name and incorporation can have long-term implications.
Business Name: A business operating under a registered name might be sufficient for small, local enterprises or sole proprietorships. However, as the business grows, the limited ability to raise capital, legal liability, and lack of name protection might hinder its expansion potential.
Company Incorporation: For businesses with long-term growth plans, incorporation is the preferred option. The ability to raise capital through share issuance, national name protection, limited liability, and perpetual succession make companies a more suitable vehicle for expansion. It also enhances credibility with clients, investors, and partners.
Conclusion
Choosing between Business Name Registration and Company Incorporation in Nigeria depends on your business goals, size, and risk appetite. Business name registration offers simplicity, fewer regulatory obligations, and is ideal for small businesses or sole proprietors. On the other hand, company incorporation provides limited liability, enhanced credibility, better access to capital, and is suitable for businesses with growth ambitions. By carefully considering these differences, you can choose the structure that aligns with your business objectives and ensures long-term success.
11 Types of Businesses You Can’t Register as a Business Name in Nigeria
When registering a business in Nigeria, it’s crucial to understand which types of businesses are prohibited from being registered as business names under the Corporate Affairs Commission (CAC). Some industries have specific regulatory and operational requirements, making it mandatory to register them as companies rather than business names. Below are the key types of businesses that cannot be registered as business names in Nigeria.
- Schools
Educational institutions, such as primary, secondary, and tertiary schools, cannot be registered as business names. Schools must meet specific government regulations and are typically required to be registered as incorporated entities or trusts to ensure compliance with educational standards.
- Travel and Tour Agency
If you want to do CAC registration for travel agency, you should note that travel and tour agencies need to meet the regulatory standards set by the Nigerian Civil Aviation Authority (NCAA). These agencies require proper licensing and are typically registered as limited liability companies rather than business names.
- Pharmacy
Pharmacies must adhere to the guidelines set by the Pharmacists Council of Nigeria (PCN). Due to the highly regulated nature of the pharmaceutical industry, pharmacies cannot operate under just a business name and must be registered as a limited liability company to ensure proper compliance.
- Insurance Company
Insurance companies in Nigeria fall under the regulatory oversight of the National Insurance Commission (NAICOM). Since these companies handle sensitive financial products, they cannot operate under a simple business name and must be registered as companies to comply with financial and risk management regulations.
- Betting Companies
The betting and gaming industry is regulated by the National Lottery Regulatory Commission (NLRC) and other state-level bodies. Betting companies are required to meet strict legal and financial requirements, and hence, cannot be registered as business names.
- Oil and Gas
The oil and gas sector in Nigeria is one of the most heavily regulated industries. Companies involved in the exploration, refining, or distribution of oil and gas products are required to be registered as limited liability companies, not business names, and must comply with industry-specific regulations.
- Banks
Banking institutions are governed by the Central Bank of Nigeria (CBN). Due to the stringent regulatory framework surrounding financial institutions, banks must be incorporated as companies to meet operational, financial, and security standards.
- Clearing and Forwarding
Clearing and forwarding businesses, which handle the logistics of importing and exporting goods, are regulated by the Nigerian Customs Service. These businesses cannot be registered as business names due to the complexity of the legal requirements, including obtaining proper licensing and certification.
- Consulting Business
Although consulting services may seem straightforward, the type of consulting you offer can impact your registration process. Professional consultants, such as financial advisors or legal consultants, are often required to register as companies due to the need for professional certifications and liability concerns.
- Security Business
Private security firms are regulated by the Nigeria Security and Civil Defence Corps (NSCDC). Due to the sensitive nature of the services provided, such businesses cannot operate under a business name and must meet stringent regulatory and operational standards through incorporation.
- Cleaning Services
While some smaller cleaning businesses can register as business names, larger cleaning services, especially those offering industrial cleaning or corporate contracts, are typically required to be incorporated as companies to meet regulatory and safety standards.
Conclusion
While the Corporate Affairs Commission (CAC) allows many types of businesses to register as business names in Nigeria, specific industries with regulatory and operational requirements cannot do so. These businesses must be registered as companies to comply with industry standards and regulations. Before starting your business, it’s essential to check whether your industry falls under these restrictions to ensure smooth and legal operations.
For more information on business registration in Nigeria, consult us to ensure compliance.
Minimum Share Capital Requirements For Specific Companies
Understanding the minimum share capital requirements for company registration in Nigeria is essential for anyone looking to start a business in the country. Whether you’re new to CAC registration or considering upgrading your business name registration to a full limited liability company, knowing the capital requirements can simplify the registration process and guide your financial planning.
At CACregistration.com, we provide detailed insights and services for individuals and businesses navigating how to register a company in Nigeria in compliance with the Corporate Affairs Commission (CAC) guidelines. The table below highlights the minimum share capital requirements for certain companies that are regulated in Nigeria
| Type Of Company | Minimum Share Capital (N) |
| Issuing House | 200 Million |
| Broker/Dealer | 300Million |
| Trustee | 300 Million |
| Fund/Portfolio Manager | 150 Million |
| Stock Broker | 200 Million |
| Stock Dealer | 100 Million |
| Corporate Investment Adviser (Registrar) | 150 Million |
| Corporate Investment Adviser | 5 Million |
| Individual Investment Adviser | 2 Million |
| Market Maker | 2 Billion |
| Consultant (Partnership) | 2 Million |
| Consultant (Individual) | 500,000 |
| Consultant (Corporate) | 5 Million |
| Underwriter | 200 Million |
| Venture Capital Manager | 20 Million |
| Commodities Broker | 40 Million |
| Capital Trade Point | 20 Million |
| Rating Agency | 150 Million |
| Corporate/Sub Broker | 5 Million |
| Asset Management (Intangible Assets) | 300 Million |
| Commercial Bank With Regional Authorization | 10 Billion |
| Commercial Bank With National Authorization | 25 Billion |
| Commercial Bank With International Authorization | 50 Billion |
| Merchant Bank | 15 Billion |
| Payment Solution Services (Pss) (As Permissible Under Super Agent, Pts And Pssp (Combined)) | 250 Million |
| Super Agent (Agent Recruitment Management And Other Activities As Specified In The Regulatory Framework For Licensing Super Agents In Nigeria | 50 Million |
| Payment Terminal Service Provider (Ptsp) (Pos Terminal Deployment And Services, Pos Terminal Ownership, Ptad, Merchant/Agent Training And Support) | 100 Million |
| Payment Solutions Service Provider (Pssp) (Payment Processing Gateway And Portal, Payment Solution/Application Development, Merchant Service Aggregation And Collection) | 100 Million |
| Mobile Money Operation (E-Money Issuing, Wallet Creation And Management, Pool Account Management Activities As Permissible Under Super Agent) | 2 Billion |
| Switching And Processing (Switching, Card Processing Transaction, Clearing And Settlement Agent Services, Non-Bank Acquiring Services Activities As Permissible Under Super Agent, Ptsp And Pssp) | 2 Billion |
| Unit Micro Finance Bank (Tier 1) | Tier 1: 200 Million |
| Unit Micro Finance Bank (Tier 2) | Tier 2: 50 Million |
| Micro Finance Bank (State & Fct) | 1 Billion |
| Micro Finance Bank (National) | 5 Billion |
| Primary Mortgage Institution | 2 Billion |
| Finance Company | 20 Million |
| Bureau De Change | 35 Million |
| Non-Interest Bank (Regional) | 5 Billion |
| Non Interest Bank (National) | 10 Billion |
| Insurance Broker | 5 Million |
| Life Insurance | 8 Billion |
| General Insurance | 10 Billion |
| Composite Insurance | 18 Billion |
| General Insurance | 10 Billion |
| Composite Insurance | 18 Billion |
| Re-Insurance | 20 Billion |
| Unit Microinsurer | 40 Million |
| State Microinsurer | 100 Million |
| National Microinsurer | 600 Million |
| Takaful Insurance (General And Family Takaful) | 200 Million |
| Private Security Company/Consultant | 10 Million |
| Pension Fund/Asset Custodian | 2 Billion |
| Closed Pension Fund | 500 Million |
| Pension Fund Administrator | 5 Billion |
| Lottery | 5 Million |
| Sports Lottery | 30 Million |
| Air Transport (International) | 2 Billion |
| Air Transport (Regional) | 1 Billion |
| Air Transport (Local) | 500 Million |
| Air Ambulance/Fumigation/ Private Jet | 20 Million |
| Aviation (Ground Handling Services) | 500 Million |
| Aviation (Air Transport Training Institutions) | 2 Million |
| Agents Of Foreign Airlines | 1 Million |
| Travel/Tours | 30 Million |
| Agricultural Seeds, Productions, Processing, Marketing | 10 Million |
| Shipping Company/Agent | 25 Million |
| Cabotage Trade | 25 Million |
| Life Micro-Insurance | 150 Million |
| General Micro-Insurance | 200 Million |
| Freigth Forwarding | 5 Million |
| Payment Service Bank | 5 Billion |
| Health Maintenance Organization (Hmo)(National) | 400 Million (Paid up) |
| Health Maintenance Organization (Hmo)(Regional) | 200 Million(Paid up) |
| Health Maintenance Organization (Hmo)(State) | 100 Million (Paid up) |
Why Choose Us for Your Business CAC Registration?
Fast and Reliable Service: We understand that time is crucial, which is why we aim to process your registration quickly and accurately.
Expert Guidance: Our team of professionals is experienced in navigating the complexities of CAC registration, ensuring a smooth and hassle-free experience.
Affordable Fees: We offer competitive rates for all types of registrations, making it accessible for businesses of all sizes.
Comprehensive Support: From document preparation to submission, we handle the entire process, so you don’t have to worry about missing any important steps.
CAC Registration FAQs
What is the Corporate Affairs Commission (CAC) in Nigeria?
The Corporate Affairs Commission (CAC) is the government agency responsible for regulating the formation and management of companies, business names, and incorporated trustees in Nigeria.
What is the process for registering a business name in Nigeria?
To register a business name in Nigeria, you must choose a unique name, conduct a name availability search through the Corporate Affairs Commission (CAC), fill out the necessary forms, pay the required fees, and submit documents for approval.
How much does it cost to register a business in Nigeria?
The cost of registering a business varies depending on the type of registration. Business name registration typically costs around ₦25,000 to ₦30,000, while registering a limited liability company can cost ₦50,000 and above depending on share capital.
How long does it take to register a business in Nigeria?
Business name registration usually takes 3-5 working days, while company registration can take between 5-10 working days, depending on the complexity of the documents submitted.
What documents are required for business registration in Nigeria?
For business name registration, you need identification (e.g., National ID, International Passport), business name, business address, and proprietor details. For companies, you need identification, address, director and shareholder information, and Memorandum and Articles of Association.
What is the difference between a business name and a limited liability company?
A business name is a simpler structure suitable for sole proprietors and partnerships, with fewer legal formalities. A limited liability company (Ltd) is a separate legal entity, providing liability protection for its shareholders.
Can foreigners register a business in Nigeria?
Yes, foreigners can register a business in Nigeria. However, they must obtain relevant permits such as a Business Permit and Expatriate Quota from the Nigerian Investment Promotion Commission (NIPC) to conduct business here in Nigeria.
What are the benefits of registering a business with CAC?
Benefits include legal protection, brand name protection, access to government contracts, opening a corporate bank account, obtaining tax identification, and enhancing business credibility.
Can I register a business in Nigeria online?
Yes, you can register your business online through the CAC’s official portal. Many third-party registration services like CACRegistration.com also offer online business registration services.
How do I get my CAC certificate?
Once your business registration process is successfully completed, the CAC will issue a certificate of incorporation. You can download this certificate from the CAC online portal.
What is the difference between a private limited company (Ltd) and a public limited company (PLC)?
A private limited company (Ltd) cannot offer shares to the public, while a public limited company (PLC) can raise capital by selling shares to the public and is typically larger in scale.
What is the minimum share capital for a limited liability company in Nigeria?
The minimum share capital for a private limited company is ₦100,000, while certain sectors like oil and gas or financial services may require higher minimum share capital.
Do I need a lawyer to register a business in Nigeria?
No, you don’t need a lawyer to register a business. However, using professional services like CACRegistration.com ensures accuracy and compliance with CAC regulations, which can prevent delays.
What are the annual filing requirements for a registered business in Nigeria?
Registered businesses must file annual returns with the Corporate Affairs Commission, in addition, companies must submit tax returns to the Federal Inland Revenue Service (FIRS), and maintain financial records.
What is the meaning of an incorporated trustee in Nigeria?
An incorporated trustee is a legal entity for non-profit organizations, religious bodies, clubs, and associations that operate under trustees who are responsible for the entity’s management.
Can I register more than one business name in Nigeria?
Yes, you can register multiple business names, as long as each name is unique and available.
What happens if my proposed business name is already taken?
If the name you choose is already taken or too similar to an existing registered name, you will need to propose another name or variations of your preferred name.
How do I check if my business name is available in Nigeria?
You can conduct a name availability search on the official CAC website or engage third-party service providers like CACRegistration.com to check if your preferred name is available.
What are the penalties for not registering a business in Nigeria?
Operating an unregistered business is illegal. You may face fines, the inability to enforce contracts, limited access to government programs, and lack of legal protection.
What is the difference between RC and BN?
“RC” stands for Registered Company, assigned to limited liability companies, while “BN” is for Business Name, assigned to sole proprietorships and partnerships.
Can I upgrade my business name to a limited liability company later?
Yes, you can upgrade or transition from a business name to a limited liability company, but the process involves re-registering under the company structure and obtaining a new CAC certificate.
Can one person own a limited liability company in Nigeria?
Yes, under the Companies and Allied Matters Act (CAMA) 2020, a single individual can now register a limited liability company as a sole shareholder and director.
How can I register a non-governmental organization (NGO) in Nigeria?
To register an NGO, you must file as an incorporated trustee, providing information about the organization’s objectives, trustees, and constitution. You also need to publish notices in national newspapers before completing the process.
What is a TIN, and why do I need it after registering my business?
A Tax Identification Number (TIN) is required for businesses to comply with Nigerian tax laws. It allows businesses to pay taxes, file returns, and access certain government services. You must obtain a TIN after registering with the CAC.
Can I use a residential address for my business registration?
Yes, you can use a residential address for business registration, especially for sole proprietors or small businesses that do not yet have an office. However, it’s important to update the address if the business relocates to a commercial space.
How can I amend or update my business details with CAC after registration?
You can amend business details such as the registered address, directors, shareholders, or company name by filing the appropriate forms with the CAC and paying the necessary fees. These updates are critical for maintaining compliance.
What is the role of a company secretary in Nigeria, and do I need one?
A company secretary ensures compliance with corporate governance and CAC regulations. For private companies with fewer shareholders, a secretary is optional. However, larger companies are required to appoint one.
Can I change my business name after it’s been registered?
Yes, you can change your business name after registration by submitting a business name change request to the CAC, along with payment for the name change and other required documents.
Is there an expiration date for a CAC registration certificate?
No, the CAC registration certificate does not expire. However, you must file annual returns and maintain compliance with legal and regulatory requirements to keep the business active.
What happens if I don’t file my annual returns with the CAC?
Failure to file annual returns can result in penalties, including fines and the potential deregistration of your business. It also prevents you from accessing government incentives or contracts.
Do I need to register for VAT after registering my business?
Yes, businesses that engage in taxable goods or services must register for Value Added Tax (VAT) with the Federal Inland Revenue Service (FIRS) and file regular VAT returns. Recently, small companies are exempted from filing VAT.
Can I register a business with just one director?
Yes, under the CAMA 2020 reforms, you can now register a limited liability company with just one director. Previously, a minimum of two directors was required.
What is the difference between a sole proprietorship and a limited liability company?
A sole proprietorship is a business owned and operated by a single individual, with no legal distinction between the owner and the business. A limited liability company (Ltd), on the other hand, is a separate legal entity that limits the liability of its owners (shareholders).
Do I need to register my business if I’m a freelancer in Nigeria?
Yes, freelancers are encouraged to register their business, either as a business name or limited liability company, to operate legally, access opportunities, and build credibility.
Can I register a franchise business in Nigeria?
Yes, you can register a franchise business in Nigeria. The franchise must comply with local business laws and register either as a business name or limited liability company, depending on its structure.
What is the minimum age for registering a business in Nigeria?
The minimum age for business registration is 18 years. However, individuals under 18 can register a business with the another person who is above 18 years.
Can a registered business operate in multiple locations in Nigeria?
Yes, a registered business can operate in multiple locations within Nigeria. You will need to update the CAC with additional branches or locations for regulatory purposes.
What is the role of Memorandum and Articles of Association in company registration?
The Memorandum and Articles of Association are foundational documents for a company. The Memorandum outlines the company’s purpose and objectives, while the Articles govern how the company will be run, including rights and duties of shareholders and directors.
What is the meaning of “shares” in company registration?
Shares represent ownership in a company. When registering a limited liability company, you allocate shares to shareholders, who own a portion of the business proportional to the number of shares they hold.
How do I register a subsidiary company in Nigeria?
To register a subsidiary in Nigeria, you must follow the same process as registering a new company. The parent company can own a percentage or all of the subsidiary’s shares, but the subsidiary will still need to be registered with the CAC.
Can I use a post office box (P.O. Box) as my business address?
While the CAC prefers a physical address, you can use a P.O. Box for correspondence purposes. However, a physical location (either residential or commercial) should be provided as the primary business address.
What is the role of directors in a Nigerian company?
Directors are responsible for the day-to-day management and strategic decisions of the company. They act as the legal representatives and fiduciaries of the business, ensuring it operates within the bounds of Nigerian law.
How can I dissolve or close my registered business?
To dissolve a business, you must formally apply to the CAC, submit relevant documents such as a board resolution, and clear any outstanding liabilities. The business will then be removed from the register upon approval.
Can I register an e-commerce business in Nigeria?
Yes, e-commerce businesses can be registered like any other business entity, whether as a business name or a limited liability company, depending on your preference and business model.
Do I need to register a trademark for my business name?
Registering a business name with the CAC does not automatically provide trademark protection. If you want exclusive rights to your brand name or logo, you must register it as a trademark with the Trademarks, Patents, and Designs Registry in Nigeria.
What is the role of shareholders in a company?
Shareholders are the owners of a company. They invest capital in exchange for shares, and they typically have the right to vote on key company decisions, such as appointing directors or approving financial reports.
What types of businesses are regulated by special laws in Nigeria?
Certain industries, such as banking, telecommunications, oil and gas, and pharmaceuticals, are regulated by special laws in Nigeria. Businesses in these sectors must obtain additional permits or licenses from the appropriate regulatory authorities.
Can I register a partnership business in Nigeria?
Yes, you can register a partnership under the business name structure if it involves two or more individuals. The partners share the profits, liabilities, and responsibilities of the business.
Can I register a holding company in Nigeria?
Yes, you can register a holding company in Nigeria. A holding company is a parent company that holds shares in other companies and does not engage in operational business activities itself.
What are “authorized” and “issued” share capital in company registration?
Authorized share capital is the maximum amount of shares a company is allowed to issue, while issued share capital refers to the actual number of shares distributed to shareholders.
What are the requirements for registering a foreign company in Nigeria?
Foreign companies can register in Nigeria through incorporation with the CAC. They must provide documentation from their home country, as well as fulfill additional requirements, such as obtaining the necessary permits and meeting local content laws. Minimum share capital is N100 million.
What is an NGO, and how do I register one in Nigeria?
An NGO (Non-Governmental Organization) is a non-profit entity aimed at social, charitable, or educational purposes. To register an NGO, you must apply as an incorporated trustee with the CAC, submit a constitution, and publish notices in national newspapers.
What is an annual return, and why is it required?
An annual return is a mandatory document that all registered businesses must file with the CAC. It provides information about the company’s financial status, shareholders, and directors and ensures the business remains in good standing.
Can I register a business without a Nigerian bank account?
You do not need a Nigerian bank account to register a business. However, you will need one after registration to operate effectively, as most business transactions require a corporate bank account for financial management.
Can I open a business account without CAC registration?
No, banks in Nigeria require a CAC registration certificate as part of the documents needed to open a business account.
Can I register my school as a business name with CAC?
No, schools cannot be registered as a business name under the CAC, it has to be registered as a limited liability company for proper structuring and liability protection.
| For registration of business name, company and incorporated trustees, call us or send WhatsApp message to 08155554892. |