Demystifying CAC Registration Costs: How Much Is CAC Registration?

How Much Is CAC Registration?

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How Much Is CAC Registration? Registering a business is a pivotal step in the journey of entrepreneurship, one that transforms a mere idea into a legally recognized entity. In Nigeria, this process is overseen by the Corporate Affairs Commission (CAC), the governmental body responsible for business registration and regulation.

Whether you’re launching a small enterprise, forming a partnership, or establishing a non-profit organization, understanding how to register your business with the CAC is essential.

In this comprehensive guide, we will explore how much is CAC registration and break down the various types of registration, and their costs, and provide you with valuable insights to navigate the process smoothly.

Understanding CAC Registration

CAC registration, also known as Corporate Affairs Commission registration, is the legal process of registering your business or company in Nigeria. It’s a mandatory step for all businesses operating in the country to ensure legal recognition, protection of business names, and access to certain benefits and opportunities.

Types of CAC Registration

Under CAC registration, there are several categories, each with its associated costs. Here’s a breakdown:

  • Business Name Registration
  • Incorporated Trustees Registration
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Factors Affecting CAC Registration Costs

How Much Is CAC Registration? Several factors can influence the overall cost of CAC registration. It’s crucial to consider these factors before initiating the registration process:

Type of Business

The type of business you intend to register will significantly impact the cost. Business name registration is generally more affordable than registering a limited liability company.

Your business’s legal structure, such as sole proprietorship, partnership, or limited liability company, will affect the fees.

If you choose to engage the services of a legal professional or consultant to help with the registration process, you’ll need to budget for their fees as well.

3. Additional Services

Depending on your specific needs, you might require additional services from CAC, such as name search or post-registration services. These services come with their associated costs.

The Importance of CAC Registration

Before delving into how much is CAC registration, it’s essential to highlight why CAC registration is significant for businesses operating in Nigeria.

CAC registration grants your business legal recognition. This means your business can enter into contracts, sue, and be sued in its name.

2. Ownership Protection

Your business name becomes protected, preventing others from registering a similar name.

Access to Financing

Many financial institutions and investors require CAC registration before providing funding or investment opportunities.

How Much Is CAC Registration?

A general overview of how much is CAC registration fees in Nigeria. However, please note that these fees are subject to change, and it’s essential to verify the most up-to-date fee schedule on the official CAC website.

Here is a general breakdown of the CAC registration fees for different types of businesses:

1. Business Name Registration:

  • Registration Form Fee: Naira 250.00
    • Filing Fee for Business Name Certificate: Naira 10,000.00
    • Filing Fee for Certified True Copy of Business Name Certificate: Naira 10,000.00
    • Filing Fee for Change of Business Name: Naira 5,000.00
    • Filing Fee for Change of Registered Business Address: Naira 5,000.00

2. Incorporated Trustees Registration:

  • Registration Fee: Varies depending on the type of organization, such as NGOs, religious bodies, etc. Fees can range from Naira 20,000.00 to Naira 100,000.00 or more.

3. Limited Liability Company Registration:

  • Filing Fee for Reservation of Name: Naira 500.00
    • Stamp Duty on Share Capital: Varies based on the share capital of the company.
  • Filing Fee for Registration of a Private Limited Company: Varies based on the share capital of the company.
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4. Public Limited Company Registration:

  • Filing Fee for Registration of a Public Limited Company: Varies based on the share capital of the company.

5. Annual Returns:

  • Filing Fee for Annual Returns of a Company Limited by Guarantee: Naira 2,000.00
  • Filing Fee for Annual Returns of a Private Limited Company: Varies based on the share capital of the company.
  • Filing Fee for Annual Returns of a Public Limited Company: Varies based on the share capital of the company.

6. Registration of Charges:

  • Filing Fee for Registration of Charges: Varies based on the amount secured by the charge.

7. Miscellaneous Filings:

  • Fees for various other filings, such as alteration of memorandum and articles of association, increase in share capital, etc., vary depending on the specific transaction.

How Do I Register My Business With The CAC?

Registering your business with the Corporate Affairs Commission (CAC) in Nigeria is a crucial step to formalize your business and make it legally recognized. Here is a step-by-step guide on how to register your business with the CAC:

Step 1: Choose a Business Name

Before you begin the registration process, you need to choose a unique business name. Ensure that the name is not already in use by another registered business. You can conduct a name search on the CAC website or visit a CAC office to verify name availability.

Step 2: Determine Your Business Structure

Decide on the legal structure of your business. Common business structures in Nigeria include Business Name, Limited Liability Company (LLC), Public Limited Company (PLC), and Incorporated Trustees (for non-profit organizations). Choose the structure that best suits your business needs.

Step 3: Prepare Required Documents

The documents you need to prepare vary depending on your chosen business structure. Generally, you will need the following:

For Business Name Registration:

  • Completed CAC Form BN1 (Application for Registration of Business Name).
    • Two passport-sized photographs of the proprietor/partner.
    • Valid means of identification (e.g., National ID card, driver’s license, international passport).
    • Proof of address for the business location.
    • Statutory declaration of compliance (Form CAC/BN2).
    • Name reservation form (Form CAC/BN/4).

For Limited Liability Company (LLC) Registration:

  • Completed CAC Form CAC1.1 (Availability/Reservation of Name).
    • Memorandum and Articles of Association.
    • Particulars of the directors and shareholders (Form CAC7).
    • Statement of Share Capital (Form CAC2).
    • Declaration of Compliance with the Companies and Allied Matters Act (Form CAC4A).
    • Evidence of payment of the filing fee.
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For Public Limited Company (PLC) Registration:

  • Similar documents as for an LLC but with additional requirements for a PLC.

For Incorporated Trustees (Non-profit Organizations):

  • Completed application form for registration (Form CAC/IT 1).
    • Constitution of the organization.
    • List of trustees and their personal details.
    • Statement of affairs of the organization.

Step 4: Pay the Required Fees

Pay the registration and filing fees at designated banks or online through the CAC’s official portal. Keep copies of payment receipts for reference.

Step 5: Submit Your Application

Submit your completed application form and supporting documents to the nearest CAC office or upload them through the CAC’s online portal: https:/www.cac.gov.ng/.

Step 6: Wait for Approval

The CAC will review your application. This process may take several weeks, so be patient. They will issue a Certificate of Incorporation or Business Name Registration upon approval.

Step 7: Obtain Necessary Permits and Licenses

Depending on your type of business, you may need additional permits and licenses from regulatory authorities. Ensure that you obtain all necessary permits to operate legally.

Step 8: Publish a Notice

For limited liability companies (LLCs and PLCs), you are required to publish a notice of incorporation in a national newspaper.

Step 9: Commence Business

Once you have obtained your registration certificate and fulfilled all legal requirements, you can start operating your business legally.

How Much Is CAC Registration – Frequently Asked Questions (FAQs)

Are the CAC registration fees subject to change?

Yes, CAC registration fees can change over time, so it’s essential to check the latest fee schedule on the official CAC website.

Yes, you can register your business without a legal professional, but it’s advisable to seek professional guidance for complex registrations.

What is the difference between business name registration and limited liability company registration?

Business name registration is suitable for sole proprietors and small businesses, while limited liability company registration provides more legal protection but can be costlier.

Can I pay the CAC registration fees online?

Yes, CAC offers online payment options for registration fees, making the process more convenient.

Are there any exemptions or discounts for certain types of businesses?

Some non-profit organizations may be eligible for fee exemptions, but this varies depending on the organization’s nature and purpose. Check with CAC for details.

How long does the CAC registration process typically take?

The processing time can vary, but it usually takes a few weeks to complete the registration process once all required documents are submitted.

Conclusion: How Much Is CAC Registration?

In the dynamic world of business, formalization is not just a legal requirement; it’s a strategic move that opens doors to opportunities and safeguards your enterprise’s future. Registering your business with the Corporate Affairs Commission (CAC) in Nigeria signifies more than just paperwork; it’s a commitment to growth, transparency, and legitimacy.

As you’ve learned in this guide on How Much Is CAC Registration, the process can vary depending on your business structure, but the benefits remain universal. Legal recognition, name protection, and access to funding and partnerships are just a few of the advantages that come with CAC registration.

So, whether you’re about to embark on a new entrepreneurial endeavor or formalize an existing venture, remember that the CAC is your partner on this journey. It’s a bridge to new horizons and a testament to your commitment to the world of business.