₦airaland Forum

Nigerian business owners are increasingly at risk as the Corporate Affairs Commission intensifies efforts to delist inactive companies from its official register.

This action, known as ‘striking off,’ effectively removes a company’s legal status and renders it non-existent in the eyes of the law.

Many entrepreneurs remain unaware of the consequences until it’s too late—often discovering their company has been struck off during critical moments like applying for loans, seeking investment, or bidding for contracts.

To help businesses navigate the process and avoid being delisted, here are the six critical steps for correct company registration and post-incorporation compliance, based on the provisions of CAMA:

1. Choose a Unique Business Name:

Before anything else, select two distinct company names and verify their availability on the CAC online portal. To be approved, names must not be identical to existing companies, misleading, or prohibited under Section 30 of CAMA 2020. Once approved, the name can be reserved for 60 days for a fee of ₦500.

2. Prepare Key Governing Documents:

Businesses must draft a Memorandum of Association (outlining business objectives and share capital) and Articles of Association (detailing internal governance rules). These documents, which can be prepared using templates from the CAC portal, must comply with Sections 27 and 28 of CAMA 2020 and be signed by the company’s promoters.

3. Declare Share Capital:

The company’s authorized share capital must be specified, with a minimum of ₦100,000 for private companies. This is a statutory requirement under Section 27(2) of CAMA 2020, with higher share capital leading to increased filing fees and stamp duty.

4. Appoint Directors and Shareholders:

Provide the details of at least two directors (or one for small companies) and at least one shareholder. Directors must be at least 18 years old and of sound mind, as stipulated in Sections 20 and 271 of CAMA 2020. Required information includes names, addresses, occupations, and valid identification.

5. Submit Registration Documents:

All required documents, including CAC Form CAC1.1, the Memorandum and Articles of Association, and details of directors and shareholders, must be submitted via the CAC online portal. This is followed by the payment of statutory filing fees and stamp duty, which vary based on the company’s share capital.

6. Comply Post-Registration:

After receiving the Certificate of Incorporation, a company’s legal existence is confirmed. However, the work is not done. Businesses must register for a Tax Identification Number (TIN) with the Federal Inland Revenue Service (FIRS) and obtain any necessary permits. Most critically, they must file annual returns within 42 days of their company’s anniversary to avoid being delisted. This includes submitting yearly forms, declaring Persons with Significant Control (PSC), and paying all fees on schedule.

Source: https://punchng.com/six-steps-to-keep-business-legally-active-cac/

Bureaucracy, Bureaucracy.... Bureaucracy every time.

How does this stimulate the Ease of Doing business?

Everyday, Tinubu is thinking of how to dip his greedy hands into the pockets of Nigerians in the name of taxes, levies and bank fees, further impoverishing Nigerians.

Tinubu has to go.

With some much taxes imposed
How about the company gets to pay in percentage of the annual return of that particular Business or firm? 🤷🏾‍♂️
Company wey nothing come out at the end still dey cry for loss
How them won do?
🤔

Great100000:
Source: https://punchng.com/six-steps-to-keep-business-legally-active-cac/

Run business to later use as front for money laundering

I doubt if there are still names available to be registered, soon we have to by names to run business.

Does this means my CAC has been delisted?
These guys had better not attempt anything foolish. I'm a card carrying APC member.

ArchangelMicky:
With some much taxes imposed
How about the company gets to pay in percentage of the annual return of that particular Business or firm? 🤷🏾‍♂️
Company wey nothing come out at the end still dey cry for loss
How them won do?
🤔

The new tax law coming to effect in January has done away with all these taxes on small businesses not making over 25 million annually.

Update yourself and stop talking about old ways of doing business. Tinubu has turned things around for good.

Some of us in our little way is contributing to the economy by employing the few people we can accommodate in our small company but we only ask the government to do something about the dollar/Naira rate...

Dalohad:
Bureaucracy, Bureaucracy.... Bureaucracy every time.
How does this stimulate the Ease of Doing business.
Everyday, Tinubu is thinking of how to dip his greedy hands into the pockets of Nigerians in the name of taxes, levies and bank fees.
Tinubu has to go.

My friend, it could be far far far worse. In my home country, registering business is easy. Very easy. However, what happens afterwards can be a nightmare. Let's say, you are running a shawarma joint.

1. You have to either rent space, or own it. If you rent it, there must be a rental contract in place, and you (not the landlord) must pay tax on the rent paid.
2. Each of the employees (yourself included) must pay taxes and other dues (roughly 40% of the money paid out) on the income you receive.
3. Each of the employees, if handling food, must have health certificate (which is ok).
4. Each of the employees must have an employment cotract present in the place of work, for inspection
5. Each of the employees must have written instructions for what to do in case of emergency
6. You MUST remit taxes on each transaction made
7. Each transaction made MUST be followed by a receipt printed by devices similar to POS devices used in Nigeria. These are automatically posted to our equivalent of FIRS.
8. All utilities are more expensive for businesses, compared to households

ANY violation of ANY rule or law is heavily penalised. Warnings are not given. If asking them about the rules before opening for business, they say it is your duty to know. And how do you know if you have nobody to ask?

Etc etc etc. God Bless Nigeria and how business works here.

It is okay
It is okay
It is okay
It is okay
It is okay

Dalohad:
Bureaucracy, Bureaucracy.... Bureaucracy every time.

How does this stimulate the Ease of Doing business.

Everyday, Tinubu is thinking of how to dip his greedy hands into the pockets of Nigerians in the name of taxes, levies and bank fees.

Tinubu has to go.

Is there any society where you can do business without registering with the government?
Would his replacement dissolve the CAC?

The taxes are too much...in a civilised world where citizens are taxed, there are many benefits to such. But we don't see any benefit here in Nigeria...no supports from the government at all levels.

We source for our own drinking water, we pay our hospital bills, we repair our transformers when they are faulty even though government claimed the discos are responsible for that, no good roads to our houses etc. When is it going to be fair in this country??

The headline says steps to keep a business legally active.

The only relevant step is no 6. 1-5 are about incorporating the business legally.

God save us from our journalists

This CAC guys are either not proactive or they just want to be stagnant with their operations..

This CAC can be used effectively not only to know how to tax businesses well but to also gauge the number of businesses available and use that tool in seek foreign investment or stimulate productivity in GDP..

Inorder to register a business, you need a lawyer to do this for you, this is wrong, SMES constitute the bulk of businesses in Nigeria and most of them are carried out by people with a capital of less than ₦50,000.. so from the little money they have you want them to go and pay a lawyer about ₦10-15k depending..? Why?
Make it accessible to everyone to register by themselves on the website! By doing this even people with selling tomato by the road side and register their business and yes if they want to keep the business name running they pay the fee supposed which I know most will, In making this very accessible even to the unlearned you are able to glean how much businesses are on ground and use that to project future development indexes and what nots, and it will also enable FG to know how to better improve the business environment.

2. There should be CAC office or representative in every medium sized to large markets. Why must registration be only online? Only about 40% or so of Nigerians are Educated and internet savvy..why now neglect the others that also have their business..this registration should be so accessible that even an aboki that didn't go to school can meet an agent or enter CAC office in the market and within minutes register their business.. this ease of registration will not only help CAC in generating internal Revenue but it will help FG immensely with the data, it will also help the people, knowing with pride yes my business is registered and am a tax paying citizen..it's with this small initiatives you can see huge social infrastructure development (that's if corruption doesn't play it role) not only locally but in a wide scale.
Look around you, a lot of small scale business have Moniepoint POS terminal but not a business name..isn't that a shame? Moniepoint can register more business individuals than CAC!?!?

My take.

DrMuzungu:
My friend, it could be far far far worse. In my home country, registering business is easy. Very easy. However, what happens afterwards can be a nightmare. Let's say, you are running a shawarma joint.

1. You have to either rent space, or own it. If you rent it, there must be a rental contract in place, and you (not the landlord) must pay tax on the rent paid.
2. Each of the employees (yourself included) must pay taxes and other dues (roughly 40% of the money paid out) on the income you receive.
3. Each of the employees, if handling food, must have health certificate (which is ok).
4. Each of the employees must have an employment cotract present in the place of work, for inspection
5. Each of the employees must have written instructions for what to do in case of emergency
6. You MUST remit taxes on each transaction made
7. Each transaction made MUST be followed by a receipt printed by devices similar to POS devices used in Nigeria. These are automatically posted to our equivalent of FIRS.
8. All utilities are more expensive for businesses, compared to households

ANY violation of ANY rule or law is heavily penalised. Warnings are not given. If asking them about the rules before opening for business, they say it is your duty to know. And how do you know if you have nobody to ask?

Etc etc etc. God Bless Nigeria and how business works here.

What country is that? And how do people survive there with these stiff regulations that does not encourage enterprise?

Dalohad:
Bureaucracy, Bureaucracy.... Bureaucracy every time.

How does this stimulate the Ease of Doing business?

Everyday, Tinubu is thinking of how to dip his greedy hands into the pockets of Nigerians in the name of taxes, levies and bank fees, further impoverishing Nigerians.

Tinubu has to go.

Sorry!

So, it's Tinubu that outlined the processes of incorporating a business inside CAMA ?! Nawa oO

Do this CAC applies to those women running mama-put business?
Am just curious.
Thank you.

DrMuzungu:
My friend, it could be far far far worse. In my home country, registering business is easy. Very easy. However, what happens afterwards can be a nightmare. Let's say, you are running a shawarma joint.

1. You have to either rent space, or own it. If you rent it, there must be a rental contract in place, and you (not the landlord) must pay tax on the rent paid.
2. Each of the employees (yourself included) must pay taxes and other dues (roughly 40% of the money paid out) on the income you receive.
3. Each of the employees, if handling food, must have health certificate (which is ok).
4. Each of the employees must have an employment cotract present in the place of work, for inspection
5. Each of the employees must have written instructions for what to do in case of emergency
6. You MUST remit taxes on each transaction made
7. Each transaction made MUST be followed by a receipt printed by devices similar to POS devices used in Nigeria. These are automatically posted to our equivalent of FIRS.
8. All utilities are more expensive for businesses, compared to households

ANY violation of ANY rule or law is heavily penalised. Warnings are not given. If asking them about the rules before opening for business, they say it is your duty to know. And how do you know if you have nobody to ask?

Etc etc etc. God Bless Nigeria and how business works here.

Love800:
Do this CAC applies to those women running mama-put business?
Am just curious.
Thank you.

Yes. Businesses that use POS machines must be registered.

Okay.

I so much appreciate.

My final question... if one does not register with CAC, what will happen to the person?

ZeemsPropeties:
Yes. Businesses that use POS machines must be registered.

Love800:
Okay.

I so much appreciate.

My final question... if one does not register with CAC, what will happen to the person?

I don't know about that but I know you need one to get a POS machine registered.

nomorespams:
This CAC guys are either not proactive or they just want to be stagnant with their operations..

This CAC can be used effectively not only to know how to tax businesses well but to also gauge the number of businesses available and use that tool in seek foreign investment or stimulate productivity in GDP..

Inorder to register a business, you need a lawyer to do this for you, this is wrong, SMES constitute the bulk of businesses in Nigeria and most of them are carried out by people with a capital of less than ₦50,000.. so from the little money they have you want them to go and pay a lawyer about ₦10-15k depending..? Why?
Make it accessible to everyone to register by themselves on the website! By doing this even people with selling tomato by the road side and register their business and yes if they want to keep the business name running they pay the fee supposed which I know most will, In making this very accessible even to the unlearned you are able to glean how much businesses are on ground and use that to project future development indexes and what nots, and it will also enable FG to know how to better improve the business environment.

2. There should be CAC office or representative in every medium sized to large markets. Why must registration be only online? Only about 40% or so of Nigerians are Educated and internet savvy..why now neglect the others that also have their business..this registration should be so accessible that even an aboki that didn't go to school can meet an agent or enter CAC office in the market and within minutes register their business.. this ease of registration will not only help CAC in generating internal Revenue but it will help FG immensely with the data, it will also help the people, knowing with pride yes my business is registered and am a tax paying citizen..it's with this small initiatives you can see huge social infrastructure development (that's if corruption doesn't play it role) not only locally but in a wide scale.
Look around you, a lot of small scale business have Moniepoint POS terminal but not a business name..isn't that a shame? Moniepoint can register more business individuals than CAC!?!?

My take.

For point 1, you can register your business online. The CAC website is one of the most reliable government website in Nigeria.
For point 2, there are CAC agents in the markets. You either don't frequent the markets or you are talking about an issue you have limited knowledge about.

DrMuzungu:
My friend, it could be far far far worse. In my home country, registering business is easy. Very easy. However, what happens afterwards can be a nightmare. Let's say, you are running a shawarma joint.

1. You have to either rent space, or own it. If you rent it, there must be a rental contract in place, and you (not the landlord) must pay tax on the rent paid.
2. Each of the employees (yourself included) must pay taxes and other dues (roughly 40% of the money paid out) on the income you receive.
3. Each of the employees, if handling food, must have health certificate (which is ok).
4. Each of the employees must have an employment cotract present in the place of work, for inspection
5. Each of the employees must have written instructions for what to do in case of emergency
6. You MUST remit taxes on each transaction made
7. Each transaction made MUST be followed by a receipt printed by devices similar to POS devices used in Nigeria. These are automatically posted to our equivalent of FIRS.
8. All utilities are more expensive for businesses, compared to households

ANY violation of ANY rule or law is heavily penalised. Warnings are not given. If asking them about the rules before opening for business, they say it is your duty to know. And how do you know if you have nobody to ask?

Etc etc etc. God Bless Nigeria and how business works here.

which country is that? 40 Chara oooooooooooooooh

Okay.

I really appreciate.

Good writeup. Have a great day.

ZeemsPropeties:
I don't know about that but I know you need one to get a POS machine registered.

ernieboy:
which country is that? 40 Chara oooooooooooooooh

I am too old, can't even remember the answer to that, lol.