To get your company name incorporated anywhere, there are due procedures to be followed. In Nigeria that responsibility lies with a statutory body called the Corporate Affairs Commission, CAC which was enacted to regulate and administer business names to individuals, organisations and the like.
On the other hand, Companies and Allied Matters Act, CAMA is a law or an instrument of legislation by the Federal Government to oversee the operation of Micro, Small and Medium Scale Enterprises which are popularly known as the MSMEs in Nigeria.
In fact, the establishment of CAMA of 1990 which repealed that of the English model of 1968 and its subsequent amendment gave rise to CAC. In Nigeria, securing your business name with CAC is actually the starting point to giving your business a legal backing. As a result, we have to take some time out to talk about the requirements for business name registration and the procedures involved in it.
Procedures and Requirements for CAC Registration
There are various ways startups can get their business names registered with CAC. The cheapest way is by visiting a CAC office nearest to your location or by using the organization’s online portal. Another beautiful way is to hire the services of a verified agent of CAC who does the job for your at an additional cost.
Having decided to secure your entity’s name before someone else does, we are happy to guide you on the 3 basic steps to be followed in CAC business name registration.
1. Documents and certificates that will establish the authenticity and originality of your business like Passports and well-recorgnized ID card.
2. Money for fees to be paid (depending on your case, use and type).
1. First, head over to name checker to conduct a public search to ascertain the availability of your intended business name. Searches are free for now.
2. Once the name is available, reserve the name for 60 days or complete the pre-registration form – CAC-BNo1 and upload relevant registration documents via the commission’s official online platform.
3. Having done that, conclude the process by paying the filing fee. If you’re yet unsure about that of your business, check this list to know.
Isn’t that simple and straightforward? …and before you ask, you don’t need a legal practitioner, chartered Accountant or Chartered Secretary as a Proprietor or an Individual registering a firm.
Going forward, in any case you’re registering a private company like companies limited by shares, an unlimited company or ones limited by guarantee, it is important that you get your company incorporated with CAMA. In that case, you are going to go beyond just business name registration.
Incorporation of companies under CAMA
The famous Pre incorporation actually starts where business name registration ends and it basically involves 3 more steps to get accomplished. They include submission of shareholders names & relevant details, payment & preparation of required documents and submission & certificate pickup.
Let us briefly explain these steps one after the other.
Submission of Shareholders names & Details
This is a list of Shareholders in the company which must not be lesser than 2 or greater than 50 in number. The person to be listed are supposed to be of sound mind, above the age of 18, acceptable as a director by CAMA and have no undischarged bankruptcy.
It is Important you know that CAMA accepts person’s below the age of 18 as a founding member of the company as far as two or more adults names have been enlisted.
On the other hand, other accompanying details to follow these names are their addresses, phone contacts, ID cards, international passports (if any) and other valid documents alike.
Payment & preparation of required documents
Neither CAC registration nor company incorporation is free, therefore on getting to this stage, you make your payments. The amount to be paid depends on the share capital of your company.
After that, get your documents ready.The papers to work on include but not limited to the following:
- List, particulars and consent of the first directors of the company.
- Notice of registered address of the business.
- Memorandum and articles of association.
- Statement of compliance by a legal practitioner.
Submission & certificate pickup
At this stage, package and upload them to CAC website, and you are good to wait for your certificate of incorporation once your application has been reviewed without need to reject your proposal.
Conclusion on companies incorporation in Nigeria
Once you have been duly certified, there are responsibilities that are expected of you to live up to. These are called post incorporation obligations and these duties are all detailed at the commission’s official website … before you ask, it is possible to make changes to your business details even after submission, so you don’t need to worry too much about costly mistakes.