CAC Registration: All you need to Know about CAC Registration for Business names, Companies and Incorporated Trustees

Doing your CAC Registration for your business or organization is one of the first steps to take before kick-starting your business or at the beginning phase of a business. In this article, I am going to answer several questions pertaining CAC Registration of Business names, Companies ( both public and private companies) and Incorporated Trustees.

Contents

1. What is CAC

2. What is CAC Registration

3. Advantages of Registering a         business or organization

4. CAC Registration Form

5. CAC Registration Portal

6. Types of Business Registrations

7. CAC Contact Information

What is CAC

CAC which is the short form for Corporate Affairs Commission is the government agency which is responsible for the registration of business names, companies and Incorporated Trustees in Nigeria. It was established in 1990 vide Companies and Allied Matters Act no 1 (CAMA) 1990 as amended, now on Act cap C20 Laws of federation of Nigeria.

What is CAC Registration

CAC Registration is the act of registering a business name, companies or Incorporated Trustees with the Corporate Affairs Commission in other for the registered business or organization to become a legal entity. 
A legal entity here simply means an individual, company, or organization that has legal rights and obligations. 

Advantages of Registering a Business

There are several advantages in registering a business such as; 

1. The business assumes the status of a legal entity hence will be regarded and respected by potential customers as one and the business can sue or be sued. This will make the business to gain more trust from the masses.

2. Registering a business makes it easier for the business to secure loans and grants from commercial institutions such as banks, non governmental organizations and even government agencies. Securing grants from organizations such as Africa Enterprise Challenge Fund (AECF) or Tony Elumelu Entrepreneurship Programme ( TEEP) with an unregistered business will be difficult. 

3. There is limited liability with registering a business especially as a company. What this means is that in case if the business is indebted, the shareholders are legally responsible for the debts of the company only to the extent of the value of their shares in that company ie their personal properties and assets are not affected. 

CAC Registration Form

This is the form that you have to fill when you commence the registration of your business name, companies or Incorporated Trustees. You can view the CAC Registration form here.

CAC Registration Portal

The portal for the CAC Registration of business names, companies or Incorporated Trustees is www.cac.gov.ng

Types of Business Registrations

There are three (3) categories of business registrations with the CAC  ie Business name registration, Company registration and Incorporated Trustees registration. I am going to explain them one after the other.

1. Business name Registration:

 This kind of registration is for sole traders, sole proprietors or partnership businesses. This type of Registration does not make the registered business a legal entity, therefore, the owners of the business bear full risk in case the business becomes indebted. 
However, it is less expensive and less rigorous to register a business name compared to registering a company.

2. Company Registration

This type of registration is only for companies and the registration upgrades the status of the business to a legal entity. Registering a limited liability company guarantees the shareholders of limited liability in the business ie the shareholders are legally responsible for the debts of the company only to the extent of the norminal value of their shares in the company. 

There are two kinds of company registration;

i. Private limited liability company

ii. Public limited liability company.

The difference between the two of them are ;

For Private Limited Liability Company

a. Private Limited Liability Company name ends with the word Limited or Ltd for example Transport Services Limited

b. The number of shareholders ranges from 2 - 50

c. It's shares cannot be sold publicly or quoted on the floor of the stock market. It can only be sold privately.

For Public Limited Liability Company

a. The company name of a public limited liability company ends with Plc.
for example Ecobank Plc.

b. The number of shareholders ranges from 7 till infinity

c. The shares are quoted and sold publicly on the floor of the stock exchange market.

3. Incorporated Trustees Registration

This type of registration is for non-business and non-profit making organizations formed to facilitate acquisition of corporate personality. This type of organization does not do business and does not distribute profits. It only receives income in form of grants and levies.

CAC Contact Information

If you wish to contact the Corporate Affairs Commission for any reason, you can visit their headquarters at 
Plot 420, Tigris Crescent, Off Aguiyi Ironsi Street, Maitama, Abuja.
Nigeria. 

Or you can visit the CAC  branch office at your state of residence. They have branch offices in all the 36 States of Nigeria.

You can also call them on phone via
+234 809 552 1924 or email them at cservice@cac.gov.ng

You can also visit their website at www.cac.gov.ng for more details. 

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Have a lovely day!

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