Starting a business in Nigeria begins with one crucial legal step — registering your company with the Corporate Affairs Commission (CAC). This process not only grants you legal recognition but also opens the door to numerous opportunities such as bidding on contracts, opening business bank accounts, and attracting investors.
Here’s a complete guide for entrepreneurs and business owners looking to get it right the first time.
Why Register Your Company?
Registering your business:
- Grants your company legal recognition
- Protects your business name from being used by others
- Increases credibility with clients and partners
- Provides access to funding, grants, and tax benefits
Types of Business Entities in Nigeria
Depending on your business structure, CAC allows you to register under several categories:
- Business Name (Sole Proprietorship/Partnership)
- Private Company Limited by Shares (Ltd)
- Public Company (PLC)
- Company Limited by Guarantee
- Incorporated Trustees (for NGOs, religious bodies)
Required Documents
For most private limited companies, you’ll need:
- Approved company name (via CAC portal)
- Memorandum and Articles of Association (MEMART)
- Completed CAC Form 1.1 (Registration Form)
- Means of identification for directors and shareholders
- Evidence of address and utility bills
- Passport photographs
Step-by-Step Registration Process
- Name Reservation: Use the CAC public search tool to check if your desired name is available. Once confirmed, you can reserve the name for 60 days.
- Document Preparation: Draft and execute MEMART and other necessary forms.
- Filing: Upload documents and pay applicable fees via the CAC online portal.
- Approval and Certificate: If all is in order, you’ll receive a Certificate of Incorporation along with a status report.
Common Pitfalls to Avoid
- Using incorrect business names (e.g., containing prohibited words)
- Submitting unsigned or improperly completed forms
- Skipping legal advice on share capital structuring
Pro Tip: Use a legal professional to streamline registration and avoid rejections or delays.
