1. CAC Registration FAQs
Q: What is CAC, and why do I need to register my business with it?
A: CAC stands for Corporate Affairs Commission. An independent Federal Government Agency saddled with the responsibility of regulating, registering, and certifying businesses in Nigeria.
Q: How long does CAC registration take?
A: CAC registration for business names and companies takes 5 to 7 days. Limited by guarantee takes 3 months, and NGO registration takes 4 to 5 weeks
Q: What’s the difference between a Business Name and a Limited Liability Company?
A: Business names are for small entities, while companies are for larger business operations.
Q: Can I register my business myself, or do I need a CAC agent?
A: No. Always employ the services of an experienced and skilled professional like Legacy Benjamin Consult
Q: What documents are required to register a business in Nigeria?
A: ID of Proprietor/Directors or Trustee, Signature, Address
Q: I’m a Nigerian living in Diaspora. Can I still register a company in Nigeria?
A: Yes. Nigerians in diaspora can register a company and invest in Nigeria
2. Business Name Upgrade FAQs
Q: Why should I upgrade from a Business Name to a Limited Company?
A: Companies have more advantages over a business name, e.g higher loan amounts, limited liability, proper governance structures, e.t.c
Q: What is the process for upgrading my business to a limited liability company?
A: Kindly read our full guide to upgrading from BN to RC
Q: Can I keep my current business name when upgrading?
A: No. You will have to remove the name from CAC records
Q: What is share capital, and how does it affect my company?
A: Share capital is the amount of money (interest) owned by each shareholder in a company
Q: How do I split or allot shares on the CAC portal?
Follow our guide to dividing and allotting company shares the right way
3. TIN & Tax Compliance FAQs
Q: What is a TIN (Tax Identification Number)?
A: TIN is a unique 9-digit identifier number issued to each registered entity with CAC in Nigeria, as well as individuals. It is used for the payment of taxes
Q: Is TIN automatically generated after CAC registration?
A: Yes. Upon successful registration, CAC will generate a FIRS TIN on your certificate. We can also process your JTB certificate on your behalf.
Q: How do I get my company’s TIN after registration?
A: TIN, together with other CAC documents, will be sent to your email, on WhatsApp and via logistics delivery
Q: Do I need to file tax returns if my company hasn’t started business?
A: Yes. New companies are required to file tax returns in their first year of business
Q: What are the penalties for not registering for tax in Nigeria?
A: 5% of the tax owed for each month, or part of a month that your return is late, up to a maximum of 25%
Q: What is a Tax clearance certificate?
A: This is a document issued by the Tax authority to a taxpayer (companies) confirming that the taxpayer has fulfilled all tax obligations
Q. What is Tax Promax?
A: Tax Promax is an online system that integrates both individuals and companies for effective tax payments and
4. NGO & Ministry Registration FAQs
Q: What is the best structure to register a ministry: NGO or LTD by Guarantee?
A: It is for charities, ministerial work with the sole purpose of providing social services without making money. An NGO is best for you.
If you are a ministry school, you generate revenue from fees and other services while maintaining social welfare. Limited by guarantee is best
Q: What documents are needed to register an NGO with CAC?
A: Trustee information, aims and objectives of the NGO, IDS of Trustees, Passport Photo, Signature, Newspaper publication, trustee declaration
Q: How long does it take to register an NGO in Nigeria?
A: About 4 to 6 weeks
Q: Can I include religious or humanitarian objectives in my NGO?
A: Yes
Q: How much does it cost to register an NGO?
A: Legacy Benjamin Consult charges ₦130,000 for NGO registration
5. Compliance & Post-Incorporation FAQs
Q: What is Annual Return, and why is it compulsory?
A: Annual returns are a way of reporting to CAC yearly that you are still in Business. It is important because it informs CAC about how much you are making annually, and it is part of your duty as a business owner to comply
Q: How do I change the name, address, or directors of my company?
A: You can do that via post-incorporation through the services of an agent
Q: What happens if I don’t file my company’s annual returns?
A: Your business status will be INACTIVE in CAC records, and after a long period, CAC will remove your business from their register
Q: Can I pause or close my company if I’m not using it?
A: Yes. CAC makes provision for the dissolution of the company
Q: What are post-incorporation filings, and when are they needed?
A: Post Incorporation filings are filings and modifications done on an entity that has already been registered with CAC, E.g. annual returns filing, change of company name, change of nature of business, e.t.c
6. Business Licensing & Permits FAQs
Q: What is a business license, and why do I need one in Nigeria?
A: A license is an official document which serves as a permit issued by a regulatory authority, allowing your business to operate legally in a specific industry. It also ensures compliance with the specific laws governing such a sector
Q: Which types of businesses require licences in Nigeria?
A: The following businesses require a license
- Export businesses require an export license
- Businesses that engage in numerous transactions require EFCC License
- Real Estate requires a REDAN license
- Lending and Fintech companies require a DUNS number and a CBN license
- Food and drink businesses require a NAFDAC license
- Loan companies require a lending license
- Transportation/logistics requires a Courier License
- Schools and educational centres require a TRCN certificate
- Healthcare and medical centres (e.g., HEFAMAA, MDCN)
Q. Can I run my business without a license?
A: No. Running a business in a sector that requires a license without a license is a criminal offence, and you will be prosecuted
Q: Should I trademark my brand?
A: Yes. A trademark registration gives you exclusive rights to your intellectual property
7. General Business FAQs
Q: Can foreigners register a company in Nigeria?
A: Yes. Registration of companies with foreign participation is ₦100,000,000 (100 million) shares. Registration cost is ₦3,000,000 @ Legacy Benjamin Consult
Q: What are the most affordable business structures in Nigeria?
A: Business name remains the most affordable business structure for SMEs and sole proprietors. Though some businesses may require a company registration
Q: Is it better to start as a business name or a company?
A: It depends on the nature of the business and affordability. If it’s a small business, then Business Name is okay
Q: Do I need a lawyer to register my business?
A: Not always. An accountant can also do the job
Q: How can I verify if a company is registered with CAC?
A: You can do this by confirming the list of registered companies on the CAC search portal
Q: What services do you offer?
A: You can visit our services page