Build Reputation by Incorporating or Registering your Business with Corporate Affairs Commissions CAC 2022-2025 | By Olatuja Gabriel-Wealth

 

You don’t want to do your business the same way and expect a different result.

Hence, answering the following question will help you to place your business at an edge of success:

How are you going to authenticate your business to boost customers trust?

If you need genuine answers to the above question, you are in the right place. This article will do justice to your questions and afterwards, you will be on your way to make your business a successful one.

Please, pay attention to every bit of details as your read. Your pen and paper of note pad is important as there are a lot of points you will like to joke down.

 

Alright! Let’s get started!

 

1. How are you going to authenticate your business to boost customers trust?

One of the ways you can make your reputable is

Registration with Corporate Affairs Commission, CAC

A certificate of incorporation or business is a legal document/license relating to the formation of a company or corporation. It is a license to form a corporation issued by Corporate Affairs Commission of the Federal Republic of Nigeria to business owners.

So, a certificate of incorporation is a certificate that CAC (a governmental institution) issues to a business owner. The main aim of the certificate is to prove the proper incorporation and company’s existence.

Why should I register my business with CAC?

It is beneficial to register your company with CAC in Nigeria. This authenticates your business. To make your business a credible business and a business recognised by government is through registration with CAC. This will help customers to believe in you and that you can’t defraud them.

Benefits of Registering Your Business With CAC

By registering your business with CAC, you will have these benefits:

• Potential customers feel more comfortable paying into a corporate account than paying to a personal account because they know their money can be traced.
• You will be able to open a corporate/business account with your registered business certificate.
• You can apply for loans and grants when your business is registered.

The different types of registrations are

• Business Name.
• Private Limited Company (LTD)
• Company Limited By Guarantee (LTD/GTE)
• Public Limited Company (PLC)
• Unlimited Company (ULTD)
• Incorporated Trustees.

 

• Business Name.

A BN is generally simpler to register and costs less and can have one person as a proprietor or two or more as partners. It is a one-man business or sole proprietorship business.

Is a business name a legal person?

A business name is simply an alias of the business owner. It’s the name by which the business owner is also known as. Such a business entity is in fact and at law the same person as the owner(s). It does not enjoy separate legal existence nor can it own property.

 

Can I register my business with CAC online?

An individual can now register a company online with CAC, as long such an individual understands the requirements for the incorporation process. Before incorporation, it is important to check whether the proposed name to be chosen or reserved has been registered by another individual.

 

Registration steps for Business Names

Check for availability of the Business Name (click here). Read more about name reservation and Reserve a new Name   (click here)

1. Complete pre-registration form – CAC-BNo1 and upload relevant registration documents(Online using Company Registration Portal)
2. Pay filing fee  Check the Fees for our Services here

 Note: Individual/Proprietors can register business names without the services of the legal practitioner, chartered Accountant or Chartered Secretary. However, it is advised you hire a professional to do it as you may run into problems while registering yourself and that can lead to you losing your money or take a lot of time for making some mistakes.

If you need a professional to help you out, send us a Whatsapp Message here or call 08111055633

 

• Private Limited Company (LTD)

A Private Limited Company is a legal entity in its own right and the company’s finances are separate from its owner’s finances. Protection from personal liability – personal assets will not be at risk in the event of failure of the business.

A shareholder owns and controls a limited company through the purchase of one or more shares. A director is appointed to manage a company on behalf of its shareholders. Whilst the roles of directors and shareholders are completely separate and very different, it is normal for one person to hold both positions.

How many people can own a Private Liability Company?

Therefore, becoming aware of the realities, the Nigerian Legislature moved to face it by making it statutorily possible for one person to incorporate and own private companies in Nigeria through the introduction made to the New CAMA.

While section 18(1) retained the requirement of two or more persons, section 18(2) expressly provides that one person can form a private company. Private limited liability companies are small companies having a membership of not above 50.

If you need a professional to help you out, send us a Whatsapp Message here or call 08111055633

 

What is the difference between Business Name and Private Limited Company?

A business name cannot raise funds from creditors by any means, it must always be funded by its owners, and however, limited liability can raise funds by a debenture and issuing more shares of the company to other members or even creditors.

A BN is generally simpler to register and costs less and can have one person as a proprietor or two or more as partners, whereas a Limited company has a minimum of one director or shareholder, but can appoint executive directors and managers to operate the company.

If you need a professional to help you out, send us a Whatsapp Message here or call 08111055633

 

• Company Limited By Guarantee (LTD/GTE)

A company limited by Guarantee is often referred to as a ‘not for profit’ or ‘Charitable company’, this refers to the fact the parties involved do not remove the profit from the company as shareholders can in a company limited by shares. Any profit made by the company is re-used for the good of the business.

While the consent of the Attorney General of the Federation (“AGF”) is still a pre-requisite for the registration of a company limited by guarantee, there is now a specific time within which the AGF must issue the approval or objection. Under the repealed CAMA, the AGF had the prerogative to issue or withhold consent and there was no timeline attached to such consent. Source.

If you need a professional to help you out, send us a Whatsapp Message here or call 08111055633

 

• Public Limited Company (PLC)

Public Limited Companies is companies whose shares are traded in stock market or issues fixed deposits.

What is the difference between private limited company and public limited company?

A public limited company is a company listed on a recognized stock exchange and the stocks are traded publicly. On the other hand, a private limited company is neither listed on the stock exchange nor are they traded. It is privately held by its members only

 

• Unlimited Liability Company

Unincorporated businesses such as sole traders have unlimited liability. In other words, the individual who has started the business will be personally liable for business debts until they choose to incorporate.

• Incorporated Trustees.

An incorporated trustee (also referred to as a “corporate trustee”) is a corporation, usually a trust company, which is named as the trustee of an account such as a private trust or another fiduciary account.

Incorporated Trustees are non-business and non-profit making organisation formed to facilitate acquisition of corporate personality by a community of persons bound together by custom, religion, nationality or any association of person established for religious, educational, literary, scientific, social developments, sporting or charitable purpose: section 590 of CAMA. It is an organisation registrable under Part C of CAMA. It can however, operate without registration but cannot take advantage of corporate identity of the trustees.

Note that such organisations can still be registered as company limited by guaranty to be able to do some limited business even as an NGO, church or club, among others.

If you need a professional to help you out, send us a Whatsapp Message here or call 08111055633