Obtaining your Corporate Affairs Commission (CAC) certificate is an important milestone in formalizing your business in Nigeria. However, the process doesn’t stop there. To fully operationalize your business and comply with regulatory requirements, here are the critical steps to take after obtaining your CAC certificate:
Obtain a Tax Identification Number (TIN)
Your Tax Identification Number is essential for opening a corporate bank account and fulfilling tax obligations.
Steps to Obtain a TIN:
- Visit the Federal Inland Revenue Service (FIRS) office with your CAC certificate, application form, and a valid ID.
- Some CAC-registered businesses are automatically assigned a TIN during registration. Verify this on the FIRS portal.
Register for Value Added Tax (VAT)
If your business generates taxable goods or services, you must register for VAT with the FIRS. Once registered, you’ll collect VAT on sales and remit it to the FIRS.
Open a Corporate Bank Account
You need to open a business account. A corporate bank account separates personal finances from business transactions and enhances your business’s credibility.
Requirements:
- CAC Registration documents
- Tax Identification Number (TIN)
- Valid Means of Identification
- Utility Bills
- Passport Photograph
- Valid ID of account signatories.
- Referees Letters
- SCUML Certificate (if required)
- Company resolution (if required by the bank).
Register with Relevant Regulatory Bodies
Depending on your business type, you may need additional licenses or certifications. For example:
Schools: Ministry of Education.
Travel Agencies: Nigerian Civil Aviation Authority (NCAA).
Pharmacies: Pharmacists Council of Nigeria (PCN).
Businesses dealing in finance, insurance, or investment: Central Bank of Nigeria (CBN).
Enroll for Pension Scheme and Social Insurance (if applicable)
Employers with a minimum number of staff must comply with pension regulations by enrolling their employees under the Pension Reform Act. Similarly, businesses may need to register for employee compensation schemes with the Nigeria Social Insurance Trust Fund (NSITF).
Enroll with the Industrial Training Fund (ITF)
After registering a company in Nigeria, it is mandatory for eligible businesses to enroll with the Industrial Training Fund (ITF). The ITF is a government agency established to promote skills development and manpower training in Nigeria.
Eligibility for ITF Enrollment: Businesses are required to register with the ITF if they:
- Have five or more employees.
- Utilize annual turnover exceeding ₦50 million.
Process for ITF Registration
- Visit the nearest ITF area office or register online via the ITF portal.
- Submit CAC incorporation documents, Tax Identification Number (TIN), and company contact details.
- Complete the ITF registration form and pay the required fee.
Why ITF Compliance Is Important
Failure to enroll with the ITF can result in penalties and loss of access to business opportunities, such as bidding for government contracts. Moreover, compliance enhances access to ITF training programs and reimbursements for training costs incurred by the company.
Register Your Brand or Trademark
If you have a unique brand name, logo, or slogan, consider protecting it with a trademark. This prevents unauthorized use of your intellectual property.
Comply with SCUML Requirements (if applicable)
If your business falls under Designated Non-Financial Institutions (DNFIs), such as real estate, hotels, or consultants, you must obtain a SCUML certificate to open a bank account.
Set Up Financial and Administrative Systems
Establish systems for managing your business effectively:
- Accounting and bookkeeping: Use accounting software or hire professionals.
- Employee management: If you have staff, ensure you draft employment contracts and have a payroll system.
- Filing annual returns: File annual returns with the CAC to keep your business in good standing.
Develop a Marketing and Business Strategy
With your business registered, focus on growth and customer acquisition. Create a marketing strategy, establish your online presence, and identify your target market.
Maintain Compliance with CAC Requirements
To avoid penalties or deregistration:
- File annual returns promptly.
- Notify the CAC of any changes in business structure, address, or directors.
- Keep your company documents up to date.
Above are the basic list of what to do after CAC registration. Taking these steps ensures your business operates legally, builds trust with stakeholders, and sets a solid foundation for growth.
If you need help on how to stay complaint with regulations, contact us.
Adebayo Oluwole is a seasoned chartered accountant and a member of Chartered Institute of Taxation of Nigeria with over twenty years of experience. His expertise cuts across accounting, auditing and taxation. He has helped hundreds of individuals translate their dreams into reality by offering them pre and post registration services. His focus is to help SMEs grow in the marketplace.