Before I start explaining these Benefits Of Registering Your Business With CAC, let us first look at: Who is the CAC and the functions of CAC in Nigeria (as set out in section 7 of the Companies and Allied Matters Act).
What is the CAC?
CAC is an acronym of Corporate Affairs Commission. CAC is an autonomous body charged with the responsibility of regulating the formation and management of companies in Nigeria.
What are the major functions of CAC in Nigeria?
The functions of the Commission, as set out in section 7 of the Companies and Allied Matters Act, includes the following:
- To administer the Act, including the regulation and supervision of the formation, incorporation, management and winding up of companies
- To establish and maintain companies registry and offices in all the states of the Federation suitably and adequately equipped to discharge its functions under the Act or any law in respect of which it is charged with the responsibility
- Arrange and conduct an investigation into the affairs of any company where the interests of the shareholders and the public so demand
- To undertake such other activities as are necessary or expedient for giving full effect to the provisions of the Act.
- The Commission also registers Business Names, and Incorporated Trustees as well as provides a wide range of ancillary services
In recent times, there has been an increase in the establishment of small businesses all over the country. Whether as sole proprietors, entrepreneurs, or SME’s there is a need for your business to be registered. Many owners of small business in Nigeria trivialize the need to register their businesses for various reasons which are; ignorance, or simply to avoid the long process of registering a business or even paying tax.
But However, there are lots of things to benefit from registering your business with the CAC. The benefits of registering your business include, but not limited to, the following:
1. Protecting your Business Name and Idea
In the world of competitive marketing, registration of one’s business has become a necessity and of utmost importance for the protection of the business name, idea and trademark. Where your business has grown to a certain level, and the business name has now become recognized by many people, there is a tendency for a newly established business to imitate your business name, thereby taking both your name and your customers. Thus, it is important to register your business with CAC.
2. Certificate of incorporation by CAC
Upon registration of a business, the commission issues a certificate of incorporation to the business owner evidencing that such business has been registered. Registering your business gives you the right to operate that business. Also, the certificate of incorporation provides a small business in Nigeria with a good reputation as well as legal recognition.
3. Account Opening in Your Company Name
Another Benefit Of Registering Your Business With CAC is to use it to open a corporate account in your company name. Having corporate account give you more credibility and trust from your customers, bank, suppliers and other business partners.
Credibility is an essential quality a business should have. Most businesses are looking to get into the corporate environment where they are able to trade with corporate organizations and generate revenue. Most customers, especially corporate customers, will do business with you only if your business is registered as invoices/ receipts with business details. This speaks to compliance and governance. By not registering your business, you may appear as if you are trying to evade tax.
5. Protection from personal liability
Among the Benefits Of Registering Your Business With CAC is that the business owner has a separate legal identity from the business itself. Thus, the business owner gets separate legal protection. Where liability arises from the business, the owner will not be held personally liable or responsible. If a loan was obtained and there is a default in payment, the bank will not withhold the personal property of the business owner; they will only withhold the property of the company.
6. Getting Grants or loans from the Bank
Funding is critical in any business; and when it becomes necessary to source it externally, especially from banks, your legal business documents facilitate the process. This is because your company is seen as a legal entity, and it can be tracked and accounted for. It is easier to secure loans from banks with a registered business, compared to a personal loan application.
When your company is registered, accessing loan becomes easy compared to the personal loan application. With your documents, you can prove that you’re a business. This gives credibility and trust and ensures confidence. Also, your investors or lenders will see that they are dealing with a company and will be willing to lend you money if other terms and conditions are made.
7. Attract Investors/Partnership
Among the Benefits Of Registering Your Business With CAC is easy access to funding and partnership. To qualify for a business loan, the non-negotiable requirement is that you must have a formalized business registration.
For investors, it’s the same thing, e.g. Dragon’s Den – they are only willing to invest in your business if you give them a share of your business. No investor will take you seriously if you’re asking for investment when your business is not registered. Most government grants to entrepreneurs and small businesses require that the business is registered.
8. Hiring Employees
A registered business can employ full-time employees and pay them salaries and other benefits. You have the opportunity to seek for intern especially from National Youth Service Commission (NYSC) that will not cost you a lot in terms of paying salaries and incentives.
9. Business continuity
Utibe Etim, in his article, stated that a business is set up with the intention that the business continues, grows and remains even when the owners are no longer available. Registering a business ensures that the business remains relevant, on the record of the corporate affairs commission. Where a business has a well laid out structure, it further ensures its continuity and registration affords that structure to be recognized.
10. A good reputation with customers
Finally, among the Benefits of Registering Your Business With CAC is that it gives your potential customers’ confidence that they are dealing with a reputable business. And when this reputation is maintained, it brings more referrals to the business. The importance of business registration cannot be overemphasized; the benefits far outweigh the disadvantages.
It gives the business owner an edge over other businesses that have not been registered and makes the business look credible, reputable, and attract financial aid to the business. Register your business today!!! Also, see: 6 Powerful Ways to Monetize a Blog
How To Register Your Business With CAC
Usually, you can register your business either as a Business Name or 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, you will need at least two directors and a secretary. However, there’s a new law that will allow one person to register as a limited liability company. Basically, there are two ways to register your business with CAC.
1. Register Through CAC Online Portal. To register online, follow the steps below:
- Visit www.cac.gov.ng
- Create an account
- Log in
- Do a public search of your preferred name
- Reserve your business name
- Follow other procedures as directed
2. Get An Expert To Help You Register
Registering yourself can be difficult if you lack the experience. So, it is always best to engage the services of a professional. Most times, people get stuck when they get to a particular stage. To avoid that, you can engage the services of a professional.
You can trust Panelict Technologies and Consulting (most reliable Outsourcing agency in Abuja) to help you with your business registration. With us, it is fast, affordable and seamless. Most importantly, we are traceable (8, JL Mamadu Street, Winners Way, Dawaki District, Abuja.) for people who are weary of online scammers.
Our prices are listed below:
- Business Name – N18,000
- Limited Liability Company – N50,000
- Trademark – N60,000
- NGO – N100,000
To crown it all, your certificate will be ready in 7 -15 working days.
For more information, please contact Panelict Technologies and Consulting through:
Phone number: 08104038181