Registering of businesses is the most looked over stuff in Nigeria.
Most people think it is not necessary but truth be told, it is the first step to scaling your business.
Look at the importance of registering your business with CAC
CAC is acronym for CORPORATE AFFAIRS COMMISSION. It is a body responsible for registering business names, and regulating the formation and management of companies in Nigeria.
The first step of registering a Business with CAC is by going to the office in any Nigerian state capital.
When you get to the office, make it known to any staff there (clearly) that you want to register a Business and not a company. The requirements are different.
You will be charged #1500 for a form to search if the business name is available (that is, the name has not been registered previously by another person).
They call it “availability check and reservation of name form”
The commission now claims it is possible to do this online by this link http://services.cac.gov.ng/
I have not tried it myself though.
The rules guiding the names you can register
- The names must not contain words like “National”, “Government”, “State”, “Co-operative” etc
- The names must not be similar to any business or trade mark already registered in Nigeria
- If you use such terms as “consulting”, “medical”, “engineering”, and terms like that in your name, you will need a certificate to back it up that you are qualified to actually do those things.
You can supply multiple names in the form so they can check if they are available.
You will be contacted at a maximum of 2 weeks to come and complete your registration. If however, the names you supplied are not available, you will have to buy another availability form and submit two names again. In other to save you this stress and cost, it is advisable you choose a very unique name.
If the business name you applied for is approved, you will be asked to pick a registration form to use in registering the approved business name that costs #250.
You will be asked to pay another #10,000 to complete the registration of your business. (Please kindly know that this prices may change anytime, but we will always keep you updated).
The image above is what the form looks like.
a) The approved business name,
b) The business address,
c) The name of the sole proprietor or partners,
d) The address of the owner(s),
e) Two passport photographs of the business proprietor(s) or owner(s),
f) General nature of the business. (here, you will be provided with a list where you can check the category your business falls into).
Someone at the office should guide you in filling the form.
You will be interviewed at some point during the registration to confirm some facts about you and your business.
They will also likely come to the address you provided as the business address to confirm if all you put down are accurate, hence, fill in correct information.
How much do you need to register your business with CAC?
From what we have above, you will spend a total of #10,750.
It is that simple.
Common, take that step today and incorporate your business and boss up!