Non-Governmental Organizations are to register with the Corporate Affairs Commission before then can operate legally in Nigeria. In this guide, I will walk you through the process of NGO (Foundation) CAC registration online in Nigeria, the cost and requirements involved.
What is an NGO in Nigeria
Non-Governmental Organizations (Also referred to as Incorporated Trustees by CAMA) are entities set up by people called Trustees.
They are set up independently of the government with the aim of fulfilling non-financial objectives.
These organizations are created to render services like providing basic social amenities, humanitarian, and provide solution to developmental issues like poverty, education, and human rights.
Types of NGO Registration
Under The Companies and Allied Matters Act 2020, There are different categories of NGOs in Nigeria and each category defines the activities of the NGO.
Below are the Incorporated Trustee categories;
1. Foundation (Charity) Organization
Foundations are basically NGOs setup with the aim to provide charity and humanitarian services to the community.
A good examples is the “Heal The World Foundation” created by the late Michael Jackson in 1992 to help children globally by providing medical care, food and shelter.
In Nigeria, we have popular Foundations like the “Tony Elumelu Foundation”.
TEF is a leading philanthropy entity, empowering a new generation of African entrepreneurs and creators across the continent.
Foundations are also called initiatives.
2. Faith Based Association
This is where churches fall under. If you are looking forward to registering a church in Nigeria, This is the best category for it.
This category does not only cover churches but also mosque (for Muslims) which are the 2 key pillars of religion in Nigeria (Christianity and Islamic).
3. Community Based Association
Under this category, a community in a particular local government in a given state can come together to register an NGO.
Community based associations are registered in Nigeria with the aim of promoting shared communal values, and empowerment scheme.
A community can register under this category to provide help and support to farmers to engage in effective and best farming practices.
4. Club Based Association
Club based Associations are formed by people who come together to form a union in the form of a club and pursue shared goals and objectives.
This is the best category for Old boys of any school or institution in Nigeria. E.g St Peter’s Secondary School, Old Boys Set 2020 can come together to set up a club called SPOBAV Set 2020.
The same applies to other institutions that want to form a Non profit Organization in Nigeria.
When any alumni group of any institution in Nigeria decide to form an NGO to promote the affairs and uplift the institute, then such NGO is classified as Club Based Association.
5. Cultural Based Association
As the name implies, a cultural based association is an NGO registered to promote cultural values, history and ancestral beliefs of a group of people in a society.
For example, a group of people who engage in masquered activities and cultural dance patterning to a particular local government in a state can form an NGO to give it a legal identity.
6. Sporting Based Association
These are NGOs registered in Nigeria to promote sporting activities. A good example of this are the Football clubs and tournaments we have in our communities and states.
Since they operate mainly to breed football talents in youths, they are best registered as NGOs.
CAC Requirements for NGO (Foundation) Registration in Nigeria
Unlike business names, and company registration, Incorporated Trustee/Association/Charity Organization registration is a bit more complex
Before you can register an NGO in Nigeria, you must have handy the following;
- 3 proposed names of NGO (ranking 1st to 3rd in other of preference)
- Minimum trustees required: This is usually 2
- 2 Newspaper publications
- Address of the NGO, contact number and email
- Aims and Objectives of the NGO
- Constitution of the NGO
- Statutory trustee declaration form signed by any Federal high court
- Minutes of meeting for appointment of trustees
- Trustee tenure
- Bio data of trustees including passport photograph, ID and signature
- Residential addresses of trustees
- Acceptable IDs are NIN, driver’s license, international passport and voter’s card
Guide To Register a Non-Governmental Organization (NGO) with CAC in Nigeria
Follow this process to register a church, foundation or association with CAC in Nigeria online
- Visit the CAC portal
- Navigate to Names requiring consent
- Fill In your NGO names starting from the 1st preferred choice
- Select your registration category e.g Faith Based for churches, Foundation Based Association for Charity e.t.c
- Fill in the other details like constitution and move to the next page
- Declare the aims and objectives of the NGO
- Fill in Trustee information (e.g Chairman and Secretary)
- Get to the preview stage and make reservation payment and submit.
Once you have made your reservation, the application will be moved to pending. After a while, you will get feedback
If CAC approves your NGO name (out of the 3 submitted), do the following next
- Prepare the trustee declaration form
- Publish 2 newspapers in the national dailies
- Draft a trustee board minutes of meeting
Once you have successfully, done this, go back to the CAC online NGO form and complete the following
- Fill in the methods of raining funds
- On the newspaper page, state the date each publication was done with the page number and newspaper name
- Upload all the necessary documents
- Make final NGO registration fee payment and submit
- Wait for approval and documents.
Methods of Raising Funds for NGOs in Nigeria
Non-Governmental organizations in Nigeria inclusive of Churches, Clubs, Community associations, foundations and social clubs do not engage in profit motive.
However, they need money to execute their projects and stay sustainable.
- Their common means of raising funds are;
- Through grants and loans
- By investing funds and getting returns
- Through donations
- By conducting fundraising campaigns
- Through membership dues and levies
- Through Member’s voluntary contribution
Incorporated Trustee (NGO) Registration Cost in Nigeria
The cost to register an NGO can be broken down into
- CAC statutory fees
- Newspaper publication fees
- Draft trustee board minutes fees
- Court signed trustee declaration fee
- Professional consultant fee
- Additional compliance cost (if any)
Taking into consideration all the factors listed above, the average cost of NGO registration in Nigeria ranges from ₦140,000 to ₦250,000 depending on the consultant handling the registration
Timeline for CAC NGO Registration in Nigeria
Registering a church, association or Foundation in Nigeria takes a longer period of time as compared to Business Names and Limited liability companies.
However, it takes a shorter time to register an NGO online in Nigeria with CAC than to register a company limited by Guarantee due to the complexity involving LTD/GTE companies.
The average timeline for any NGO registration in Nigeria is 4 to 6 weeks.
NGO Registration Challenges That May Cause Delay
The 4 to 6 weeks period can be extended further if the following issues are encountered during registration
- Inability to secure a name on time (Multiple name rejections)
- Lack of expertise in doing the registration. When clients pay for cheap services because they don’t want to spend money
- CAC website technical issues
- Incorrect trustee details
- Discrepancies in names on CAC CRP and IDS, and other documents
- Inability to fill in the right number of trustees (minimum of 2)
- Wrong voting in the minutes of minutes. (I have experienced this a lot)
Benefits of Registering an NGO in Nigeria
- Registering your NGO gives you legal recognition and trustee confidence. Just imaging a scenario where the house of God where miracles and wonders are performed is not registered with the government.
- Registered NGOs have the ability to open a bank account and keep reliable financial records.
- It gives eligibility for grants and partnerships
- Promotes donor confidence
- Perpetual successtion
Taxes Paid By NGOs (Incorporated Trustees) in Nigeria
NGOs are exempted from paying income tax in Nigeria. However, they may pay the following taxes;
1. Personal Income tax on income paid to the Pastor, Minister or anybody that derives renumeration while working for the church
2. Withholding Tax when engaging with contrsctors, suppliers and service providers. Such NGO must deduct Withholding tax and remit to the goverment
3. Value Added Tax on taxable goods and services at the rate of 7.5%
4. Capital gains Tax on proceeds from dispossal of non current assets owned by the NGO
FAQs on NGO CAC Registration Requirements in Nigeria
Q: What are the CAC requirements for NGO registration?
A: NGO details, cost, objectives, constitution, trustee details including ID and signature, Minutes of meeting, 2 newspaper publication and trustee declaration signed at any state high court.
Q: How much does it cost to register an NGO in Nigeria?
A: It costs between ₦140,000 to ₦250,000
Q: How many trustees are needed to register an NGO?
A: Minimum of 2 trustees. (1 of the trustee as a chairman and the other as a secretary)
Q: Do I need a consultant to register an NGO in Nigeria?
A: Yes. Legacy Benjamin Consult remains the best consulting brand for the Job. WhatsApp 08066108299
Q: How long does NGO registration take?
A: 4 to 6 weeks
Q: Can I register an NGO alone without trustees?
A: No. NGOs are governed by Trustees in Nigeria.
Q: What documents do I need for ncorporated trustee registration in Nigeria?
A: You need trustee declaration, newspaper publucations, IDs and signature of Trustees
Q: Is newspaper publication compulsory for NGOs?
A: Yes
Q: Can I use my home address for foundation registration with CAC?
A: Yes.
Q: Can an NGO run a business in Nigeria?
A: Yes. However, such NGO will pay tax on income derived from engaging in transactions.
Q: Should church Pastors pay taxes in Nigeria?
A: Yes. Pastors and other ministers that derive income from church in form of salary will pay tax on such income.
However, NGOs in its name do not pay income tax unless they engage in profitable business activities.
Q: Can a registered foundation receive foreign donations?
A: Yes. Provided the money has good source
Q: What is the difference between an Foundation and an incorporated trustee?
A: They mean the same thing
Q: Can incorporated trustee convert to a company?
A: No. Its not possible to convert an NGO into a company
Q: Can a foreigner be a trustee in an NGO?
A: No.
Q: Does NGO need SCUML certificate to operate a corporate account?
A: Yes. All NGOs in Nigeria re mandated to obtain the EFCC SCUML certificate
Conclusion:
In recent time, Incorporated Trustees have been known to provide a vital role in shaping the community and the entire world at large by providing food, basic healthcare and community development projects.
While these activities are also good to ready and see in the media, it should not dowplay the importance of legally securing this NGOs with the government
I hope this guide has walked you through the process of NGO CAC registration in Nigeria, the cost and document requirements.
If you need futher assistance, do well to reach out to us.
