CAC INCORPORATION NIGERIA
CAC Incorporation Nigeria: How to Legally Register Your Company
Introduction
If you want to operate a legal business in Nigeria, you need to register it with the Corporate Affairs Commission (CAC). This process, known as CAC incorporation, officially recognizes your business as a legal entity under Nigerian law.
In this guide, we’ll break down everything you need to know about CAC incorporation in Nigeria—including the requirements, process, cost, and why it is a vital step for entrepreneurs, startups, and organizations.
What is CAC Incorporation in Nigeria?
CAC incorporation in Nigeria is the legal process of forming a company or organization and registering it with the Corporate Affairs Commission.
The CAC was established to regulate how companies are formed and operate in the country, under the Companies and Allied Matters Act (CAMA) 2020.
When you incorporate your business:
- It becomes a separate legal entity.
- It can own property, sue, and be sued.
- It continues to exist even if ownership changes.
Why You Should Incorporate Your Business in Nigeria
Incorporating your business in Nigeria is not just a legal requirement—it’s also a strategic move that opens up more opportunities.
1. Legal Protection
Incorporation provides limited liability, meaning your personal assets are separate from business debts.
2. Increased Credibility
A registered business is more trustworthy to customers, banks, and investors.
3. Access to Funding
Most banks, government grants, and private investors require CAC registration before releasing funds.
4. Name Protection
Once registered, your business name is protected from being used by others.
5. Eligibility for Contracts
You can bid for government and private sector contracts.
Types of CAC Incorporation in Nigeria
When incorporating with the CAC, you can choose from different structures depending on your goals:
1. Private Company Limited by Shares (Ltd)
- Most common type for small and medium businesses.
- Owners’ liability is limited to their shares.
2. Public Company Limited by Shares (PLC)
- Suitable for larger companies looking to sell shares to the public.
- More regulatory requirements.
3. Company Limited by Guarantee
- Typically used for NGOs, charities, and non-profits.
- No share capital—members guarantee a specific amount.
4. Incorporated Trustees
- Used by religious bodies, associations, and clubs.
- Trustees manage the organization on behalf of members.
5. Business Name Registration
- For sole proprietorships and partnerships.
- Easier and cheaper but does not provide limited liability.
Requirements for CAC Incorporation in Nigeria
Before starting your incorporation, you need:
- Two proposed business names (in case one is unavailable).
- Nature of your business.
- Registered office address.
- Full details of directors (names, dates of birth, addresses, nationality).
- Means of identification for each director (NIN, passport, driver’s license, or voter’s card).
- Share capital and ownership structure.
- Memorandum and Articles of Association (MEMART).
- Passport photographs of directors.
- Email and phone number.
Step-by-Step Process for CAC Incorporation in Nigeria
Step 1: Reserve Your Company Name
- Go to CAC’s registration portal.
- Search for your desired name.
- Reserve it for 60 days once approved.
Step 2: Complete the Incorporation Form
- Provide company details.
- Enter directors’ and shareholders’ information.
- Outline your share capital structure.
Step 3: Prepare the Memorandum and Articles of Association
- Draft your company’s governing document.
- CAC provides templates for small businesses.
Step 4: Upload Required Documents
- Identification, photographs, MEMART, proof of address, and payment receipt.
Step 5: Pay CAC Filing Fees
- Payment can be made online or at designated banks.
- Fee depends on company type and share capital.
Step 6: Submit for Review
- CAC officials verify your documents.
- They may request corrections if something is missing.
Step 7: Receive Certificate of Incorporation
- You’ll get:
- Certificate of Incorporation
- Status Report
- Approved MEMART
