This is a piece many business owners may need to read. Interestingly, a lot of entrepreneurs in Nigeria are yet to register their businesses with the Corporate Affairs Commission.
The functions of the Commission as set out in section 7 of the Companies and Allied Matters Act, includes, to administer the Act, including the regulation and supervision of the formation, incorporation, management and winding up of companies. CAC also makes business registration seamless, especially after it has partnered with Banks to give customers a corporate bank account as soon as their business is registered.
The Corporate Affairs Commission under its Registrar-General, Garba Abubakar has made it possible for companies in Nigeria to be registered within three hours.
The commission, since December 2021 upgraded its online registration portal for business. The upgrade includes features that allow the automation of key services and processes in line with the federal government’s effort to ease Nigeria’s ease of doing business.
The Corporate Affairs Commission (CAC) says following the successful deployment of an end-to-end registration module, it has prioritized the reduction of the registration circle for new companies to just 3 hours.
To achieve the target, Mr. Abubakar, who doubles as the CEO of the Commission made arrangements to empower over 400 approving officers with working tools to process and approve registration applications either from home or anywhere necessary.
Under his leadership, CAC is resolutely committed to serving its customers despite being forced to operate with less than 50 per cent of its workforce.
Some of the new initiatives he brought on board include the mandatory requirement for obtaining a letter of good standing from the CAC for procurement purposes.
Under the arrangement, companies bidding for government contracts must obtain a letter of good standing from the commission in a bid to further strengthen the fight against corruption.
According to the Commission, typically, the first thing to do when one wants to start a business in Nigeria is to register such business names with the Corporate Affairs Commission (CAC). This will help discover if the name he/she has in mind is still available and not registered by someone else.
Sometimes, most business owners build brands only to find out that someone else has the legal right to their ‘business name’. This is not a pleasant experience, considering the pain of building a brand.
Some people fail to register their businesses due to ignorance, while some see it as a way to evade tax. However, everyone should know that the benefits of registering businesses far outweigh any perceived disadvantages.
Some of the benefits of registering with CAC include:
• You can open a corporate account with your registered business certificate. When you register through us, you get a Zenith Bank account.
• Potential customers feel more comfortable paying into a corporate account because they know their money can be traced. And you can open a corporate account with any bank of your choice with a registered business.
• You can apply for loans and grants when your business is registered.
• When you register your business, customers trust you because they see you as legit and reliable.
• Registering your business is the first step to getting your business structured. Without registering your business, you are running a glorified hobby.
• A registered business can get interns from NYSC.
• A registered business gives clients confidence that they are dealing with a reputable organization.
• When your business is registered, even if you are dead or become incapacitated, your business continues, especially when you have the right structure in place.
• A registered business gets easy access to loans and boundless opportunities.
• You have better access to investors with a registered business as investors look at the business structure first before investing.
• With a registered business, you can easily obtain a visa and travel to any country for business purposes and conferences.
• Registering your company enhances the reputation and perception of your business to prospective clients.
Usually, you can register your business either as a Business Name or a Limited Liability Company. The business name is registered by a sole proprietor and can be registered by either one person or two people max. To register as a limited liability company previously, you will need at least two directors and a secretary.
However, a new law allows one person to register a limited liability company.
If you register as a business name, all business liabilities are on you. On the other hand, if you register as a limited liability company, the business is seen as a separate entity from the owner. So, all liabilities of the company are borne by the company.
Olamide Adeniji is a member of the editorial team of TheScript Newspaper
