If you’re planning to register your business or company in Nigeria, you’ll likely encounter the need to create a profile on the Corporate Affairs Commission (CAC) portal. Many people struggle unnecessarily with this process, either because they lack guidance or are unaware of the limitations tied to personal profiles. This article will explain everything you need to know about creating a CAC profile, its purpose, the restrictions for personal profiles, and why accredited agents are often the better option.
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What is a CAC Profile?
A CAC profile is an account created on the Corporate Affairs Commission’s online portal, which allows individuals and accredited agents to access and perform various business registration tasks. This is the first step to registering a business name, company, or incorporated trustee with the CAC.
There are two main types of profiles:
- Personal Profiles – Designed for individuals who want to register a business or company for themselves.
- Accredited Agent Profiles – Reserved for professionals such as lawyers, chartered accountants, and chartered secretaries who can register businesses for others and carry out post-registration activities.
Why Create a CAC Profile?
Creating a CAC profile is essential because it grants you access to the following services:
- Business Name Registration – Individuals can register a business name for their use.
- Company Incorporation – Register a private limited liability company (LLC) or other company types where you are a member or shareholder.
- Access to Documents – Download and print registration certificates, incorporation forms, and other relevant documents. Please note that this is only accessible within seven days after the registration has been approved.
Limitations of a Personal CAC Profile
While a personal profile allows you to register a business or company, it has several significant restrictions. Understanding these limitations can save you time, money, and frustration.
- Restricted to Personal Use
A personal profile can only be used to:
Register a business name for yourself.
Incorporate a company in which you are a director, shareholder, or member.
Many individuals are unaware of this restriction and attempt to register businesses or companies for others using their profiles. This leads to complications, as their name is automatically added as a member of the business or company during the registration process. Correcting this error involves additional costs and time-consuming amendments.
- No Post-Registration Services
Personal profiles cannot be used to perform post-registration tasks, which are critical for business compliance. Post-registration services include:
Filing annual returns.
Changing business or company details (e.g., name, address, or directors).
Obtaining a Certified True Copy (CTC) of documents.
Increasing share capital.
Filing resolutions.
This limitation defeats the purpose of creating a personal profile for many individuals, as they eventually need to rely on an accredited agent to carry out these essential services.
Why Accredited Agents are the Better Option
Accredited agents are professionals authorized by the CAC to perform both registration and post-registration services for individuals and businesses. Here’s why opting for an accredited agent is often more efficient:
- Ability to Register Businesses for Others
Unlike personal profiles, accredited agents can register businesses or companies on behalf of clients without being listed as members.
- Access to Post-Registration Services
Accredited agents can handle all post-registration tasks, ensuring your business remains compliant with CAC regulations.
- Expert Guidance
Accredited agents are experienced in navigating the CAC portal and are less likely to make errors that could lead to costly corrections.
- Cost and Time Savings
While using an accredited agent may initially appear more expensive, it saves you the long-term costs of correcting errors and the inconvenience of navigating complex processes on your own.
Step-by-Step Guide to Creating a CAC Profile
If you still wish to create a personal CAC profile, follow these steps carefully:
- Visit the CAC Portal
Go to the official CAC website at www.cac.gov.ng.
- Click on ‘Register’
Select the registration option and choose ‘Create an Account.’
- Fill in Your Details
Provide accurate personal information, including your full name, email address, phone number, and a valid form of identification (e.g., national ID, driver’s license, or passport).
- Set a Password
Create a strong password for your account. Ensure it is secure to prevent unauthorized access.
- Verify Your Email
Check your inbox for a verification email from CAC and follow the link to activate your account.
- Log In and Start Registration
Once your profile is active, you can log in and begin your business name or company registration.
Common Mistakes to Avoid
Registering a Business for Someone Else: Avoid using your personal profile to register a business or company for another person. This will result in your name being added to the business, leading to unnecessary complications.
Providing Inaccurate Information: Ensure all details provided during profile creation and registration are accurate to avoid delays or rejections.
Skipping the Use of Accredited Agents: If you anticipate needing post-registration services, consider using an accredited agent from the start.
Final Thoughts
Creating a CAC profile may seem like a straightforward way to save money on business registration, but the long-term limitations of personal profiles often outweigh the initial savings. Individuals who use personal profiles for themselves can register their businesses but cannot perform essential post-registration services, leading to additional expenses and stress later.
For those looking to avoid these challenges, engaging an accredited agent is the most efficient and reliable option. With their expertise, you can ensure a smooth registration process and ongoing compliance with CAC regulations.
By understanding the purpose and limitations of CAC profiles, you can make an informed decision that saves time, money, and unnecessary frustration.
Do you need help registering your business or managing post-registration services? Contact us today for expert assistance and ensure your business stays compliant with CAC requirements.
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.