Why You Need to Register Your Business with CAC?

Filed in Blog by on September 1, 2020 0 Comments

CAC business registration is necessary for the growth of any business in Nigeria and abroad

Starting off a business is quite easy. The hardest part is how you are operating your business. Setting up a business in a foreign land can be a daunting process because you are basically moving into a terrain that you know very little about. When it comes to Nigeria, the process is straightforward, and the entrepreneurs can set up their businesses in Nigeria quite easily. This ease is made because of the Corporate Affairs Commission (CAC) that was established to form any company in Nigeria.

The Corporate Affairs Commission of Nigeria was established in 1990 vide companies and Allied Matters Act no one (CAMA) 1990 as amended, now on act cap C20 Laws of Federation of Nigeria. It is an autonomous body charged with the responsibility to regulate the formation and management of companies in Nigeria.

The main purpose of CAC :

The CAC measures two-factor authentication: 1. What you have (physically) and what is 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 not only essential, but it is also a must. Here is how you can register your business with CAC :

  1. 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 thecacm is not available. It normally takes a week to complete this process.

cac

  1. 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 haven’t been convicted of any crime earlier.

 

  1. Pay CAC Filling 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

 

  1. 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 allowance 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.BEST WAY TO SECURE BELLS UNIVERSITY UNDERGRADUATE ADMISSION 2020

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.

 A businessman is someone who does business, but professionals always remain hungry for success. This CAC system of Nigeria adds a special point to this hunger towards professionalism undoubtedly.

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