Do you own a company or are you thinking of establishing one?
Then you should consider registering your company.
Registering your Company adds more trust and credibility to your profile. It also protects your Company name and provides legal backing for your business.
The Corporate Affairs Commission (CAC) of Nigeria is saddled with the responsibility of registering Companies in Nigeria. The CAC was established by the Companies and Allied matters act, which was promulgated in 1990 to regulate the formation and management of Companies in Nigeria.
Here is a step by step process on how to register a Company in Nigeria
1. Getting a Company name
This is the first step you must take before registering your Company. The process involves choosing a suitable name for your Company. The chosen name will then be submitted to CAC to run an availability search. It is usually required to submit at least two names so that if one is taken the other might be available.
Names can be rejected if they already exist, are confusing or include prohibited words such as “National, Federal, Government or Holdings” without special permission.
It normally takes up to a week to complete the process.
2. Preparation of Memorandum and Articles of Association
This next step is best done via a lawyer. The lawyer is responsible for preparing the documents based on the objectives of the Company you wish to register.
The lawyer will request for names of the first directors who are also the initial subscribers as well as the names of shareholders.
Each director or subscriber must be above the age of 18, be of sound mind and must not have been convicted of any crime.
The directors will be required to provide a means of identification for inspection by the CAC.
3. Filling of the Incorporation Forms
After preparing the documents above you will be required to fill a form from CAC which is to be submitted back to CAC together with the document.
At this stage you will need a company secretary who can be a lawyer or accountant and will be in charge of filing of documents with CAC after the company has been registered.
The following apply during the form filling process:
- All directors must fill the Particulars of Director form (Form CAC 7)
- One director fills the Statement of Share Capital and Return of Allotment form (Form CAC 2)
- One director and the Company Secretary will fill the Notice of Situation/Change of Registered Address form (Form CAC 3)
- An individual or firm accredited by CAC will fill the Declaration of Compliance with the Requirements of CAMA form (Form CAC 4)
- At least two directors will fill the form appointing a Company Secretary for the company.
4. Payment of Stamp Duty and Filling fee
After the purchase of the incorporation forms and filling of same together with the preparation of the memorandum and article of association, the next stage is the payment of stamp duty done at an arm of the Federal Inland Revenue Services.
The stamp duty is usually paid at a designated bank into the account of Federal Inland Revenue Services. After the payment, the applicant proceeds to the Stamp Duty Commission where the memorandum and article of association with some of the incorporation forms will be stamped.
After this, the filled forms and accompanying stamped documents are then submitted to CAC. The Certificate of Incorporation will like be returned after about six weeks from the date of submission.