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What Are The Pros And Cons Of Having Your Business Registered With CAC? - Business - Nairaland

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What Are The Pros And Cons Of Having Your Business Registered With CAC? by ChelseaDr(m): 6:30pm On Oct 11, 2020
Hi everyone, people who own big and small businesses have or are considering of having such business(es) registered with the Corporate Affairs Commission (CAC).

The questions are: What are the benefits of such registration?

Are there some penalties for not having your business registered?

How do you pay your taxes as a business owner whether registered with CAC or not?

If one chooses not to register with CAC, what benefit can such a business owner enjoy?

Please for those who know better, do kindly educate us on these and more other concerns.

Mod please send to the promised land.
Cheers!!!

1 Like

Re: What Are The Pros And Cons Of Having Your Business Registered With CAC? by DropsMic(m): 6:34pm On Oct 11, 2020
Following
Re: What Are The Pros And Cons Of Having Your Business Registered With CAC? by lifenija: 7:04pm On Oct 11, 2020
pro: u alone got d right to d name

con: u get easily tracked for evading tax
Re: What Are The Pros And Cons Of Having Your Business Registered With CAC? by sirrotex: 7:11pm On Oct 11, 2020
In Nigeria, a business entity can either be registered with the CAC as a private/public limited liability company under part A of CAMA, as a business name under part B of CAMA and incorporated trustees under Part C of CAMA.

It is not compulsory for a business owner to register his business with the CAC infact the law allows an individual to trade in his full names without more, however where an individual decides to trade in a name other than his real name, the law makes it compulsory for such name to be registered with the CAC.

Registration under part A is for entities who want to have a corporate personality, ability to sue and be sued in their corporate name and ability to raise money from equities by selling their shares. This type of business arrangement is good for individuals who have various stakes in a business entity and want to define their business relationship.

Registration under Part B is otherwise known as one man business or sole proprietorship. It's for small and medium sized enterprises. The major disadvantage is that it does with the owner.

All registered business entities are liable to pay various taxes and thus have a TIN. For companies under part A, they are liable to pay company income tax, education tax and value added tax while the directors and members are liable to pay personal income tax. In addition to these taxes, they are also liable to pay annual returns to the CAC.

For entities under part B, they are liable to pay VAT and the proprietor and staff are liable to pay personal income tax. They are also liable to pay annual returns to the CAC.

Part C is a not for profit entity and a whole lot has been changed about their operations.

An individual who is not registered with CAC is liable to pay personal income tax. The disadvantage of not registering is that companies and corporations would not want to have business dealings with you.

I tried to address all your queries. Do not that these are two entire courses I just summarised.

I am sure others would help me fill whatever gaps I left out
Re: What Are The Pros And Cons Of Having Your Business Registered With CAC? by Smokeyyhut: 7:35pm On Oct 11, 2020
Hello guys, please help your girl to gain more awareness for my new food business... help a fam please.

Just help to like my picture on Instagram with the link below.

Thanks and much appreciation as you do. Help small business grow.

https://www.instagram.com/p/CGNj4vil5VK/?igshid=1lsi1ihmyb1yq
Re: What Are The Pros And Cons Of Having Your Business Registered With CAC? by ChelseaDr(m): 11:00pm On Oct 11, 2020
sirrotex:
In Nigeria, a business entity can either be registered with the CAC as a private/public limited liability company under part A of CAMA, as a business name under part B of CAMA and incorporated trustees under Part C of CAMA.

It is not compulsory for a business owner to register his business with the CAC infact the law allows an individual to trade in his full names without more, however where an individual decides to trade in a name other than his real name, the law makes it compulsory for such name to be registered with the CAC.

Registration under part A is for entities who want to have a corporate personality, ability to sue and be sued in their corporate name and ability to raise money from equities by selling their shares. This type of business arrangement is good for individuals who have various stakes in a business entity and want to define their business relationship.

Registration under Part B is otherwise known as one man business or sole proprietorship. It's for small and medium sized enterprises. The major disadvantage is that it does with the owner.

All registered business entities are liable to pay various taxes and thus have a TIN. For companies under part A, they are liable to pay company income tax, education tax and value added tax while the directors and members are liable to pay personal income tax. In addition to these taxes, they are also liable to pay annual returns to the CAC.

For entities under part B, they are liable to pay VAT and the proprietor and staff are liable to pay personal income tax. They are also liable to pay annual returns to the CAC.

Part C is a not for profit entity and a whole lot has been changed about their operations.

An individual who is not registered with CAC is liable to pay personal income tax. The disadvantage of not registering is that companies and corporations would not want to have business dealings with you.

I tried to address all your queries. Do not that these are two entire courses I just summarised.

I am sure others would help me fill whatever gaps I left out

Quite elaborate and educative

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