Step-by-step guide to registering your business online

The Corporate Affairs Commission, in line with the policy of the Central Bank of Nigeria (CBN), has made it mandatory for all business owners to register their businesses before September 5, 2024.

The CAC also announced that the recently introduced dedicated registration portal makes registering a business name less hectic and can be completed within 24 hours.

To avoid the sanctions that come with non-compliance, here is everything you need to know about registering your company on the CAC portal within 24 hours:

1. Create an account: You must have created an account before you can register or manage your business name/company. You can create an account with CAC by clicking on ‘Register’ at (https://pre.cac.gov.ng/register/new) using your mobile phone number or your NIN. Creating an account takes less than 10 seconds.

2. Selection of the company name: A business owner needs to come up with an idea for the most unique and exclusive name for the business. When choosing a name, you need to consider the values ​​of the business, the industry of the business, and the appeal of the customer.

Business owners can search for the suggested business names they have chosen to confirm that the name has not been registered before. To check if a business or trade name has been registered, follow these steps:

• Visit the CAC website (cac.gov.ng)
• Scroll down the site and click on “Public Search”
• Enter the full name of the company in the search box and click “Search”
• If the company is registered, the result will display the full company name, RC number and office address.

3. Reservation of the company name: Once it has been determined that a company name has not yet been registered, you can submit it for reservation via the website.

When you fill the form, you will pay ₦500 for name reservation, N5,000 for name reservation for restricted words and N10,000 for CTC of registration documents (excluding other charges) to receive your availability code.

4. Business preparation: Once you have completed your registration using the availability code you received (you will find it on your dashboard once your company name has been reserved).

You will need to provide details such as your business name, address and proposed business activities. You will also need digital copies of documents and valid identification such as a voter ID, international passport, national ID card, driving licence etc., proof of address, utility bill or lease agreement and a business plan. This is optional for sole proprietorships.

Once the pre-registration form has been completed, the potential business owner should now proceed to upload relevant documents.

Some of the relevant documents that need to be uploaded on the CAC platform are:

• Form CACC 1, reservation and availability of Name.
• Names and addresses of the parties establishing the company
• Two recent passport photos of each director and an authentic identity document.
• Legal declaration of conformity by a lawyer.
• Company name and address
• Head Office Address
• File a tax return with the Federal Inland Revenue Service.
• Any other documents or fees that the Commission may require to comply with any law or condition. Upload your documents online via the Company Registration Portal (https://pre.cac.gov.ng/register/new).

5. Payment of file and stamp duty costs: After the relevant documents are uploaded, the business owner will be asked to make the payment. At the end of the process, an electronic registration certificate and a certified extract of registration will be issued; this usually takes three to five days.

Please note that registration takes place from start to finish on the Company Registration Portal (CRP).

Costs for registering your company with the CAC.

Although the price is not static, CAC accredited registration lawyers have said the price for registering a company ranges from N20,000 to N40,000.

The cost of registering a limited liability company ranges from N70,000 to N100,000 depending on the share capital.

The Fines for non-compliance with CAC on a one-time basis are:

1. Small business – 5,000.
2. Company Private other than small – 10,000.
3. Limited liability company – 10,000.
4. Public limited company – 25,000.
5. General partnership (VOF) – 10,000.
6. Limited partnership (CV) – 10,000.
7. Company names – 5,000.
8. Incorporated trustees – 10,000.

Benefits of registering your business with CAC

It saves your business: Registering a business name in Nigeria and saving businesses from complications that could have been avoided, including sanctions after the July 7 deadline and worst-case scenarios such as impersonation.

• Official recognition: Once registration is complete, the CAC will issue an e-certificate that you can use worldwide without having to be physically present.
• Increase your customers’ confidence: Registering your business with CAC can help boost sales and increase customer confidence in a brand.
• Provides legal protection for companies: When a company is registered with the Corporate Affairs Commission, its name is protected from use by other companies in Nigeria. This makes it fraudulent if restricted.
• Access to loans: Obtaining loans becomes easier for CAC registered companies. It improves the confidence of investors and lenders in a company by providing credibility and trust.