How to Register a Business Name in Nigeria with CAC
Before registering for a business or corporate entity in Nigeria, you firstly need to create an account on the Corporate Affairs Commission’s official website. The next step is to apply for reservation of the business name of your choice, and of course registering that business name. All these will be discussed in this guide, luckily many parts of the work is done online, on the website, so you can do all these from the comfort of your home.
Read on to find out:
- Cost and pricing
- How to Search for a name
- A detailed guide to secure business name with CAC
How to Create an Account on CAC Website
The following steps will teach you how to create an account with CAC, this account will be used to register your business name.
Step 1: Open your browser, and go to https://services.cac.gov.ng/. On the home page, click on “Register” on the top right corner.
Step 2: Fill in the form displayed. Be sure to fill the ones with the asterisk symbol (*), otherwise you can’t proceed to complete registration.
Step 3: Activate your account by verifying your email address provided in the registration form.
Now that your account has been created, log into it. However, it usually automatically log you in after activation. Now we can proceed to the second phase of getting your business name registered.
How to Apply for Business Name Reservation
Before registration of any corporate entity name reservation must be done first. During this process, the CAC will screen your name through the existing names directory to make sure there isn’t any repetition, and also endure your name of choice is in line with the CAC naming directives. Follow these steps to apply for a business name reservation:
Step 1: Log into your account (if not logged in already), on the dashboard click on “Name Reservation”, and select “New Name Reservation”.
Step 2: On the Company Type info, select “BUSINESS NAME” on both the drop down menus for Classification, and Specific Type.
Step 3: Enter the company name you wish to check, and reserve on the “Proposed Names” field, then click on “Save and Continue”.
Step 4: On selecting the reason for availability search, choose “New Incorporation”, then click on “Save and Continue”.
Step 5: Fill the owner’s details accordingly (especially fields with asterisks). If you are registering on behalf of someone, fill his/her details accordingly. Click on “Save and Continue“ to proceed.
Step 6: Preview the details you entered, correct where necessary, and click on “Proceed to Payment”. Payment is done via Remita, and the fee is ₦500. Be sure to copy the Remita Retrieval Reverence (RRR) number, it’ll be needed as we go on, you can also save it by downloading your payment receipt.
On your dashboard, go to Name Reservation >> My Reservations, to see if your business name has been approved (you may have to wait for a couple of hours before it’s approved). Once approved, the download button for your “Payment Receipt” will change to a download button for “Approval Note”. Open the approval note, and copy the availability code. This will be used to validate your business name during registration.
How to Register a Business Name on CAC
Having been approved for a business name, you can now proceed to register the business name with the CAC. You should be prepared to fill in details such as:
- Presenter’s Details
- Company details
- Details of company directors (at least two directors)
- Details of the company’s secretary
- Details of company’s shareholders (at least two)
- Declaration of Compliance
- Objects of Memorandum
- Articles of association
Steps to Get your Business Name Registered
Step 1: On your dashboard click on Company Registration >> New Registration. You will be asked to provide the availability code which was given when the preserved name was approved. Type in the availability code then click “Start Registration”.
Step 2: On the next page, fill in your business details then click “Save and Continue”.
Step 3: To proceed further you need to add at least two directors to the business i.e. you and one other (If it’s your business, if not enter the details of both directors). On adding another director you also have to fill in his/her details accordingly, when done click on “Continue” to proceed.
Step 4: Add details of the secretary of the business. This can either be an individual or a corporate. Then click on “Save and Continue” to proceed to the next step.
Step 5: This is where you add shareholders to the company. There is a total of four allotments, and you must enter/fill at least two of them to proceed. Total allotments must carry at least 25% of your share capital (minimum amount of share capital for a business in Nigeria is ₦10000). These rules are basically to make sure the business/company is already being involved in corporate practices, as such more likely to stand the test of time.
Step 6: On the next page, you will be asked to present details for declaration of compliance. Though it’s optional, and skipping attracts a fee of ₦500 only, it’s usually wise no to skip, because sooner or later, you would need the declaration of compliance documents again during the lifetime of your business/company. You can get a declaration of compliance issued by a lawyer.
Step 7: On the next page you are to add the “Objects of Memorandum”, then click “continue” to write down the article of association of the business/company being created. An article of association is a document that specifies the regulations, and operations of any corporate entity. This with the Objects of Memorandum makes up the constitution of a business/company.
Step 8: Now we are almost done! Select the documents you wish to obtain, and click on “Save and Continue”. While you must request for at least a copy of both “Application for registration” and “Article of association”, it is wise to request for two if you have a partner. This is because all documents to be delivered are original copies, as such it is wise if both of you have an original copy to yourself.
Step 9: Preview all the details you have entered, then proceed to payment. Amount to be paid depends on the number of documents requested. However, initial amount for registration is ₦20000 for all businesses below ₦1 MILLION (as at the time of writing).
Step 10: Once payment is complete, return to your dashboard by clicking “Return to home”. On your dashboard, go to “Company Registration” >> “My Registrations”, then click on “Stamp Documents”, on the next page, click on “Request New Assessment” to pay for stamp documents. When payment is successful, the “Check Status” button will be replaced with a “Documents” download button. Download the stamped “Application for Registration” and “Article of Association”. Congratulations you have completed your business Registration.