Company formation is the process of registering or incorporating a company. In Nigeria, the Corporate Affairs Commission (CAC) is the government agency in charge of incorporation of companies, charities, Non-Governmental Organisations (NGOs) and business registration.
The law requires every business to register with the Corporate Affairs Commission (CAC). The law that regulates incorporation of business in Nigeria is the Company and Allied Matters Act 2004.
If you are still finding information on how to register a company in Nigeria, this article will guide you.
How to register a company
Below are the steps you need to take before you can register a company in Nigeria:
Get an agent
You can incorporate a company yourself by visiting the offices of the Corporate Affairs Commission or you start the process on the web portal of the CAC.
Lawyers, registered secretaries and practicing accountants may also be of help in company formation process. You can also register a company yourself by visiting https://search.cac.gov.ng/home
You need to choose some names and run a search on the names on the web portal of the CAC. If the names you chose have been used by another company, you will have to choose another name.
You are not permitted to use the following names:
- Any name identical to the name of a registered company
- Any name that contains the words chamber of commerce
- Any name that will violate existing trademarks
You require the consent of the CAC if your chosen names contain the following words:
- Federal, local, state or regional government
- Building society or co-operative
- Chartered or municipal
- Holding or group
Preparation of incorporation documents
You may need the assistance of experts to prepare your incorporation documents. The documents include Memorandum of Association, Articles of Association and Allotment of shares certificate.
You will need to pay some fees to get these documents approved, stamped and signed by the Corporate Affairs Commission.
Issuance of incorporation certificate
This is the last step in the process of company formation. The Corporate Affairs Commission will issue you an incorporation certificate when they are satisfied you have fulfilled all the conditions for your company to be incorporated.
Benefits of company formation
Incorporating a company has a lot of benefits, some of the benefits are:
Most businesses prefer to do business with only registered businesses like incorporated companies. You cannot go to bid for a contract without going with your incorporation certificate.
You may be able to access finance in the form of investment and bank loans if you have a registered company. No bank will extend credit facility to a businessman who is not registered with the CAC.
An incorporated business may also enjoy benefits from government like tax breaks, loans, export incentives and subsidies etc.
An incorporated business can open a bank account on the name of the business
In the case of a Limited Liability Company, in case of default, the liability of the business is limited to the assets of the business. The directors’ assets are not affected in the event of liquidation.
Are you still thinking of how to register a company? Are you trying to complete the process of company formation? If yes, please implement the advice in this article.