Benefits of Registering Your Business With CAC

Benefits of Registering Your Business With CAC

Are you thinking about registering your business with the Federal Government through the Commissioner of Corporate Affairs? Then you should read this article. I’ll give you 10 benefits of registering your business with the government. Before I start explaining these benefits of registering your business with CAC, let’s first look at: Who is the CAC and the functions of CAC in Nigeria.

The CAC is an autonomous body charged with the responsibility of regulating the formation and management of companies in Nigeria.

The functions of the Commission, as set out in section 7 of the Companies and Allied Matters Act, are as follows:

  • 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, Incorporated Trustees, and records information relating to certain specific Estate Assets (which shall be defined in accordance with guidelines issued by or under authority of law).

The number of small businesses in Nigeria is on the rise. Whether you’re a sole proprietor, an entrepreneur, or running a startup or company, it’s in your best interest to register your business and file taxes. Some people don’t think it’s worth the trouble to register their businesses because they don’t know what the benefits are.

The benefits of registering your business include, but not limited to, the following:

Protect 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.

Obtain Certificate of Incorporation

Upon registration of a business or company, the commission will issue 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.

Set up bank account with your Company Name

Registering your business with the CAC allows you to open a corporate account in your company’s name. Having a corporate account will give you more credibility and trust from your customers, bank, suppliers and other business partners.

Improves Your Business Credibility

Credibility is the currency of a business. Most businesses are looking to get into the corporate environment where they are able to trade with corporate organizations and generate revenue. Upon registration of a business or company, most customers, especially corporate customers, will have confidence that you can be trusted only if your business is registered. By not registering your business, you may appear as if you are trying to evade tax.

Obtain loans from the Bank 

We need funding to sustain any business; but when you’re looking for a loan from banks, it is easier to get funded if your business is registered. Personal loans are almost impossible to get. Banks will lend you money to open a business because they know that they can easily track and account for it. Banks will not give personal loans to people—only businesses—because they want the money they loaned out to be accounted for, and they require a track record of your company in order to trust you with the loan.

Protect Your Personal Properties

When a company is registered with the Corporate Affairs Commission, the business has a separate legal identity from its owner. This means that when the business owners get sued, they won’t be held personally liable or responsible. If the bank generates interest on loans it provides to companies who register with the CAC, then if the borrower defaults on payment, the bank will only withhold monies that are related to the company and not those owned by its owners.

Attract Investors/Partnership/Funding

A few of the benefits include easy access to funding and partnership, which is a requirement for many grants. To qualify for a grant, you must have a formalized business registration number; this includes the non-negotiable Dragon’s Den, which has only invested in businesses that had a formalized business registration number. Basically, if you’re asking for money without a formalized business registration number, nobody will take your idea seriously.

Hire Interns/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.

Also, see: 6 Powerful Ways to Monetize a Blog

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.

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!!!

How To Register Your Business With CAC

Usually, you can register your brand as either 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, witness(es) 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

For people looking to register their brand across Nigeria, Panelict Technologies and Consulting is the agency to trust. Panelict has the necessary experience and skills that have helped hundreds of businesses succeed. Panelict can help you get your business or company legally registered quickly and easily. We are the trusted Panelict Technologies and Consulting (Best Digital Services Hub in Abuja) for business and company registration services across Nigeria.

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.

To crown it all, your certificate will be ready in 7 -15 working days.

For more information, please contact Panelict Technologies and Consulting through:

Website: www.panelict.com

Phone number: 08104038181

Email: [email protected] or [email protected]

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