As a business in Nigeria, you are required to register your brand with the Corporate Affairs Commission. Unfortunately, a lot of people choose not to register their businesses due to ignorance. In this article, I will give you an insight into what CAC is all about and the Five major Functions of the Corporate Affairs Commission in Nigeria.
What is Corporate Affairs Commission?
The Corporate Affairs Commission is an agency formed by the Federal Government, they are charged with the responsibility of regulating the formation and operation of businesses in Nigeria.
When Was Corporate Affairs Commission Established in Nigeria?
The Corporate Affairs Commission (CAC) was established in 1990 by the Companies and Allied Matters Act (CAMA) in 1990 during the regime of the Ex-military president Ibrahim Babangida.
Over the years, The Commission has been at the heart of legalizing, approving and issuing certificates to business owners to enable them to carry out effective operations of their business.
Categories Of Registration With CAC
To register a business with CAC, you will have to choose from the following categories;
1. Registration as Business Name
If you run a small business or enterprise then a business name is the sure option for you. It’s usually done for businesses that are sole proprietors in nature. You run a small boutique shop, POS business, WhatsApp TV or if your business or brand is to offer services online, then the business name should be your option.
2. Registration as Company
You can register your business with CAC as a company. Company registrations are done for businesses that are larger for business names and are operated by more than one person.
Under company registration, you are privileged to add more than one director to your company. Again, there must be a stated share capital and share capital distribution of the company shared among the shareholders respectively.
before now, 2 people were needed to register a company with CAC, however, due to recent innovations by the commission, one person can now form and register a company with the Corporate Affairs Commission.
One huge benefit of registering your brand with CAC under the company category is that you will be given the opportunity to add 10 different variations of your business under it to form one company. However, caution should be taken in selecting a name capable of accommodating all the nature of businesses without further confusion.
Examples of businesses that can be registered as a company include; Mining, travel and Tour agencies, Cryptocurrency, Security agencies, Import and Export, Pure water Companies, Filing stations and any other large business.
Lastly, company registration now comes with a free TAX Identification Number issued by the commission.
3. Incorporated Trustee
An incorporated trustee (also referred to as a “corporate trustee”) is a corporation, usually a trusted company, which is named as the trustee of an account such as a private trust or another fiduciary account.
Examples of Incorporated trustees are, Non-Governmental Organizations, Churches, Foundations and all Charity or Non-profit Organizations.
Five Major Functions Of Corporate Affairs Commission in Nigeria
Having understood what Corporate Affairs Commission is all about, its establishment and history.
Without further ado, let’s move right into the key functions of the Corporate Affairs Commission in Nigeria.
1. It Regulates The Formation and Operation Of Business In Nigeria
One major function of CAC is to regulate the formation of Businesses in Nigeria.
Even though it is expected of every business owner to register his/her business with the Commission, keep in mind that not all businesses can be legally approved by the commission.
That’s why before registering a business, you have to submit give 2 proposed names for reservation, if the name is approved, you can proceed and register it. CAC have the right to disapprove of your business name if violates their policies.
2. Supervision of Business Operations in Nigeria
The Corporate Affairs Commission also supervises various business operations in Nigeria. One way this can be achieved successfully is through Anual Returns. Through these returns, CAC is informed if your business is still running or dead.
CAC also functions to Arrange and conduct an investigation into the affairs of any company where the interests of the shareholders and the public so demand.
Through this medium, the Commission serves as a mediator to settle disputes between companies.
4. Establishment of Registry Offices And Issuance of Certificates To Registered Business Owners
The Corporate Affairs Commision Also functions to establish and maintain companies’ registries and offices in all the states of the Federation suitably and adequately equipped to discharge its functions under the Act or any law in respect of which it is charged with the responsibility.
Again, all approved and registered businesses are issued certificates certifying their operations and recognition by the commision.
Once your business is registered and certificated, it gives you the benefit and opportunity of running a corporate bank account with your brand
5. To Delist Business Operations Without Compliance To Annual Returns
The Company has the right to delist or remove any entity or business operation in Nigeria without up to date Annual returns.
The company integrated and exercised this function on the 29th of October 2019 where it delisted over 40,000 business operations from its register.
It is worthy to note that as a business name, company or Trustee; you are required to file Annual returns before the CAC calendar begins. In a recent article, I made an expository guide on how to File Annual Returns in Nigeria.
The Corporate Affairs Commision is headquartered in Abuja @ Plot 420, Tigris Crescent, Off Aguiyi Ironsi Street, Maitama, Abuja. Nigeria.
Furthermore, the commission has various branches distributed across all the states in Nigeria.
Board Members of CAC
Our people say; If you want to go far, go together and if you want to go fast; go alone.
The Corporate Affairs Commission is not an exception as there are reputable members working behind the scenes of the Commission to enable the smooth running of its activities.
Below are CAC Board Members
1. Ademola Seriki; The Chairman is appointed by the President of the Federal Republic of Nigeria
2. A. G. Abubakar; The Registrar-General/CEO
3. Alhaji Ali S. Madugu, Mini; The representative of the Manufacturers Association of Nigeria (MAN)
4. Mazi Nnamdi Anthony Okwuadigbo; The representative of the Institute of Chartered Accountants of Nigeria (ICAN)
5. Bello Aminu Abdullahi; The representative of the Nigerian Bar Association (NBA)
6. Hajiya Saratu Iya Aliyu; The representative of the Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA)
7. Muhammad Danjuma Alhassan; The representative of the Federal Ministry of Industry, Trade and Investment (FMITI)
8. Ms Frana Chukwuogor; The representative of the Securities & Exchange Commission (SEC)
9. Mrs Antoinette Ifeanyi Oche-Obe; The representative of the Federal Ministry of Justice
- Read Also: How To Register an NGO in Nigeria
Conclusion: unctions of Corporate Affairs Commission
In conclusion, The Corporate Affairs Commission is an important agency that functions to regulate the formation and operations of businesses in Nigeria. It was formed in 1990 by the Federal Government.
It is headquartered in Abuja with other branches distributed across states in Nigeria.