CAC Company Registration Process in Nigeria

Introduction to CAC Registration

The Corporate Affairs Commission (CAC) is the official Nigerian government agency responsible for regulating and administering the incorporation of companies and the registration of business names. Proper registration with CAC is mandatory for any business operating in Nigeria and provides legal recognition, protection, and numerous operational benefits.

Types of Business Structures

1. Private Company Limited by Shares (LTD)

• Most common structure for small to medium businesses
• Liability limited to share capital
• Minimum of 2 and maximum of 50 shareholders
• Cannot invite public to subscribe to shares

2. Public Company Limited by Shares (PLC)

• For larger businesses seeking public investment
• Minimum of 7 shareholders, no maximum
• Can offer shares to the public
• Stricter regulatory requirements

3. Company Limited by Guarantee

• Typically for non-profit organizations
• Members guarantee a fixed amount in event of winding up
• Suitable for charities, clubs, and professional associations

4. Unlimited Company

• No limit on members' liability
• Rarely used structure
• Members liable for all company debts

5. Business Name Registration

• For sole proprietorships and partnerships
• Does not create separate legal entity
• Owner personally liable for business debts

Step-by-Step Registration Process

Pre-registration Preparation

1. Choose Business Name

   • Conduct name availability search
   • Ensure name isn't identical or too similar to existing registered names
   • Avoid prohibited names and reserved words

2. Gather Required Documents

   • Means of identification (International passport, Driver's license, or National ID)
   • Proof of address (Utility bill or bank statement)
   • Passport photographs of directors and shareholders
   • Memorandum and Articles of Association

Online Registration Process

1. Create CAC Account

   • Visit www.cac.gov.ng
   • Register for a user account
   • Verify email address

2. Name Reservation

   • Submit proposed names for approval
   • Pay name reservation fee (₦500)
   • Wait for approval (typically 24-48 hours)

3. Complete Registration Forms

   • Form CAC1.1: Application for registration of company
   • Form CAC1.2: Notice of registered address
   • Form CAC1.3: Particulars of directors
   • Form CAC1.4: Declaration of compliance

4. Upload Required Documents

   • Scanned copies of identification documents
   • Memorandum and Articles of Association
   • Consent letters from directors and shareholders

5. Payment of Fees

   • Registration fees vary by company type:
     • Business Name: ₦10,000 - ₦20,000
     • Private Company: ₦15,000 - ₦30,000
     • Public Company: ₦20,000 - ₦40,000

6. Submission and Approval

   • Submit completed application
   • Await review and approval (5-10 working days)
   • Receive notification of registration status

Post-registration Requirements

1. Collect Certificate of Incorporation

   • Download from CAC portal
   • Print official copies

2. Register for Taxes

   • Register with Federal Inland Revenue Service (FIRS)
   • Obtain Tax Identification Number (TIN)

3. Open Corporate Bank Account

   • Present Certificate of Incorporation
   • Provide company documents and directors' identification

4. Comply with Ongoing Requirements

   • Annual returns filing with CAC
   • Tax filings with FIRS
   • Maintenance of statutory registers

Common Challenges and Solutions

1. Name Reservation Rejection

• Solution: Have multiple name options ready
• Solution: Avoid generic or descriptive names

2. Document Verification Issues

• Solution: Ensure all documents are clear and valid
• Solution: Use certified translations for foreign documents

3. Technical Platform Problems

• Solution: Try during off-peak hours
• Solution: Contact CAC support for assistance

4. Delayed Processing

• Solution: Follow up regularly with status inquiries
• Solution: Consider using accredited registration agents

Benefits of Proper Registration

1. Legal Protection

   • Separate legal entity from owners
   • Limited liability protection
   • Perpetual succession

2. Business Credibility

   • Enhanced customer trust
   • Better supplier relationships
   • Improved access to funding

3. Regulatory Compliance

   • Meets legal requirements for operation
   • Avoids penalties for non-registration
   • Enables contract enforcement

4. Growth Opportunities

   • Ability to raise capital through shares
   • Eligibility for government contracts
   • Expansion possibilities

Recent CAC Reforms

The CAC has implemented several improvements:

1. 24/7 Online Portal

   • Round-the-clock access to registration services
   • Reduced processing times

2. Premium Registration Service

   • Expedited processing for urgent applications
   • Dedicated support for premium users

3. Mobile Application

   • CAC mobile app for easier access
   • Notifications and status updates

4. Reduced Fees

   • Lower registration costs for small businesses
   • Special rates for enterprise development

Professional Assistance

While DIY registration is possible, consider professional help for:

• Complex corporate structures
• Foreign investment companies
• Special licensing requirements
• Urgent processing needs

At Adewale & Adewale, we provide comprehensive company registration services including:

• Name reservation and approval
• Document preparation and review
• Application submission and follow-up
• Post-registration compliance guidance

Conclusion

Proper registration with the Corporate Affairs Commission is the essential first step for any business in Nigeria. While the process has been streamlined through digital platforms, understanding the requirements and potential challenges can ensure a smooth registration experience.

This guide provides general information about CAC registration. Specific requirements may vary based on individual circumstances. Consult with a corporate lawyer for personalized advice.