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ENFORCEMENT OF COMPLIANCE WITH CENTRAL BANK OF NIGERIA DIRECTIVE ON REGISTRATION BEFORE ONBOARDING

The Corporate Affairs Commission (CAC) has instructed banks to ensure registration of their customers in the agent banking platform on or before July 7, 2024.

In a letter to all affected banks, the Registrar-General/CEO, CAC Hussaini Ishaq Magaji, SAN, said the instruction is in line with Section 863(1) of CAMA and the CBN guidelines for Agent Banking, 2013.

The Central Bank of Nigeria (CBN) had earlier, through a memo issued on April 30, 2024, directed all non-individuals on the Agent Banking Authorization to immediately take steps to register their businesses with the CAC in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

The directive made it mandatory for Point of Sale (PoS) terminals whether as AGENT, MERCHANT or INDIVIDUAL to register with CAC before commencement of business.

The Registrar-General therefore enjoined the banks to ensure maximum compliance with the requirement.

This means that the Federal Government has given an express directive to mobile money otherwise known as Point of Sale (PoS)' operators to get registered with the Corporate Affair Commission, CAC, or risk arrests and prosecution. They should comply with the directive before the 7th July, 2024 deadline.

Call or whatsapp 07033513351

ENFORCEMENT OF COMPLIANCE WITH CENTRAL BANK OF NIGERIA DIRECTIVE ON REGISTRATION BEFORE ONBOARDING

The Corporate Affairs Commission (CAC) has instructed banks to ensure registration of their customers in the agent banking platform on or before July 7, 2024.

In a letter to all affected banks, the Registrar-General/CEO, CAC Hussaini Ishaq Magaji, SAN, said the instruction is in line with Section 863(1) of CAMA and the CBN guidelines for Agent Banking, 2013.

The Central Bank of Nigeria (CBN) had earlier, through a memo issued on April 30, 2024, directed all non-individuals on the Agent Banking Authorization to immediately take steps to register their businesses with the CAC in line with Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

The directive made it mandatory for Point of Sale (PoS) terminals whether as AGENT, MERCHANT or INDIVIDUAL to register with CAC before commencement of business.

The Registrar-General therefore enjoined the banks to ensure maximum compliance with the requirement.

This means that the Federal Government has given an express directive to mobile money otherwise known as Point of Sale (PoS)' operators to get registered with the Corporate Affair Commission, CAC, or risk arrests and prosecution. They should comply with the directive before the 7th July, 2024 deadline.

Call 07033513351 to get yours registered

Mr. Joe, I truly admire the way you give priority to your business.

I observe your dedication in printing banners, producing flyers, and investing in advertising, and I'm delighted to witness the growth of your enterprise.

However, it's essential to remember that while printing banners is beneficial, it's not sufficient.

The same goes for flier printing and paying for Facebook ads. Even allocating funds for a jingle and radio ads, while valuable, doesn't cover all bases.

The sole way to adequately establish your ownership of your business name when the situation demands it is by possessing your CAC certificate.

If someone else begins using your business name and you find yourself in a dispute, banners and flyers won't provide the necessary legal support; only your CAC documents will come to your rescue.

When you decide to open a corporate account at the bank, they won't request your flyers or banners; they'll only ask for your CAC documents.
Oga Joe, the most effective method to safeguard your business name isn't through banner or flyer printing, but by officially registering it.

The good news is that I'm always available to assist you in securing your business name and conducting your operations in full legal compliance.

Feel free to call, text, or message via WhatsApp at 07033513351

Wishing you a productive Friday 😄

WHAT IS POST INCORPORATION?

Post Incorporation Services are tasks performed to update a company's existing records with CAC.

These includes:
�Change of name
�Change of address
�Change of directors or shareholders
�Change of proprietor's details
�Reallotment of Shares
�Increase in Shares etc.

Filing of anual returns is also a post Incorporation Service because it's done for an already registered business.

I hope you learnt something today.

Do you want to register your Business or need a Post Incorporation Service?

Simply send a dm or call/whatsapp 07033513351

So one of the questions I am asked frequently especially by New business owners or start ups, is the difference between a Business name and a Company as regards CAC Registration.

I have highlighted a few of the differences between the two�

BUSINESS NAME

✓A Business name is the name you register to do business with. It’s governed under Part B of the Companies and Allied Matters Act (CAMA) 2004 and the registration is administered by the Corporate Affairs Commission (CAC) here in Nigeria.

✓Business names do not end with Limited or Company. Business names are usually Enterprises or Ventures

✓Business names registration number starts with BN not RC

✓A Business name can be run as a sole proprietorship or partnership. They do not have directors or shareholders. They are most suitable for a one-man business.

✓The Owner of a business name has no separate liabilities from the Business name in order words, in a legal suit, the assets of the business and that of the owner can be gotten.

✓They are less expensive to register.

COMPANY
✓Limited Liabilities are governed under Part A of the Companies and Allied Matters Act (CAMA)2004 and the registration is administered by the Corporate Affairs Commission(CAC) here in Nigeria.

✓Limited Liability can either be Private or Public.

✓Limited Liability Companies names ends with Limited or Ltd.

✓Their registration number starts with RC
Limited liabilities have directors and shareholders.

✓They do not by structure run as a one man business.

✓Limited liabilities business has its own legal identity separate from its directors.

✓The company is a person and enjoys the benefits ordinarily put on a natural person such as right to own property in its own name, it can borrow, can sue and be sued etc.

✓Limited Liability has perpetual succession.

This means that the death of a member does not end its existence.

✓Members of a Limited Liability are not personally liable for its debts; the liability of members is limited by shares.

✓The company is liable for its own debts.
Limited liabilities are governed strictly by CAMA and need close monitoring.

✓Limited liabilities are required to notify CAC on any change that happens in the Company

✓Limited liabilities are more expensive to register compared to a Business Name.

Do you want to get your Business registered, call or whatsapp 07033513351 or simply send a dm NOW.

I am still your only Madame CAC

#businessregistrationcac

IMPORTANCE OF FILLING FOR CAC ANNUAL RETURNS, AND CONSEQUENCES OF NOT DOING SO.

1. If your Business/Establishment doesn't file for Annual returns, the status of your Business will be ...INACTIVE on CAC portal.., which probably suggests that you're no longer in business.

2. Failure to file for Annual returns for a year will attract a fine of #5,000 added to the original fee of #3,000 annual payment for business names, making it a total of #8,000 per year, depending on the number of years your business failed to file.

And for Company, it's a fine of #5,000 added to the original fee of #5,000 per annum which brings it to #10,000 also depending on the number of years such Company refused to file.

3. The commission is empowered by law, to strike out any Business name/Company who fails to file for its Annual Returns for a period of 10 consecutive years.

This means that, such Business or Company stand to lose its registered Entity with the Commission, and as such a different body can register such name after it is has been striked out.

4. Failure to file for Annual returns, could make your Business/ Company lose some major contracts from investors and clients, since your Business/Company will be showing INACTIVE, which could suggest to clients that you aren't a serious Business person or that your establishment is no longer existing.

5. Failure to file for Annual returns could equally hinder you from accessing some grants/loans from angel investors and Banks, as they may not be convinced to render you such financial assistance since your establishment is INACTIVE on CAC portal, this doesn't speak well of your ability to put such funds into proper use.

WHAT IS ANNUAL RETURNS? �

Annual return is a yearly statement by a registered business name or Company which is meant to keep CAC updated about the company's activities, composition and financial positions.

Simply put, it is an application to show the regulatory commission that the company is still active in business.

Limited Liability Company (LLC) and Business Name, and every registered business in Nigeria are expected to file their annual returns with the Corporate Affairs Commission not later than 30th June every year.

Filing of annual returns is a Post Incorporation Service and can be done only by a CAC accredited agent.

2. Choose a business name

Choosing a business name is an important decision to make when launching a Business or company.

If you're in the process of deciding on a name, the following pointers will assist you in picking the best choice:

1. Pick a name that is meaningful and not vague. A name that is simple to pronounce.

2. Be creative about it and keep it simple

3. Pick a name that is consistent with your brand.

4. Do not choose a name that is identical to that of your competitors.

5. Finally, pick a name that you're certain isn't already taken or Registered.




3.Business location.

Your business location will serve as the your business address. If you already have a physical business location, if you don't, you can simply use your home address if you work from home.

4.Shareholders details. If you operate a company LLC, you will need to get all the details of the shareholders in your company. The includes their names, address, values of their shares, valid ID card, passport etc.
Presently a director can be the only Shareholder and there has 100% of the company shares.

4.Valid ID Card.

In Nigeria, ID's such as Driver's license, International passports, National ID card can be used to register a business. It is important that all parties involved in a business registration have a valid ID that are acceptable by CAC.

Other necessary requirements includes passport, signatures of all individuals involved and their addresses

TIPS ON CHOOSING YOUR BUSINESS NAME

Choosing a business name is an important decision to make when launching a Business or company.

If you're in the process of deciding on a name, the following pointers will assist you in picking the best choice:

1. Pick a name that is meaningful and not vague. A name that is simple to pronounce.

2. Be creative about it and keep it simple

3. Pick a name that is consistent with your brand.

4. Do not choose a name that is identical to that of your competitors.

5. Finally, pick a name that you're certain isn't already taken or Registered.

I hope you found this information useful.

Send a dm or call/whatsapp 07033513351 if you need help deciding on a business name and registering your company.

5 PREPARATIONS YOU SHOULD MAKE BEFORE REGISTERING YOUR BUSINESS.

1. Determine your Business Structure

Your business structure is the type of legal entity you want your business to be. There are several types of business structures, the business structure you choose depends on your priorities as a business owner.

The types of business structures include:

•Sole Proprietorship: This option designates one person as the owner. This structure is easy to set up, but the owner’s personal assets are at risk.

•Partnership (General or Limited): A partnership means the business is owned by more than one person. All parties share the risks and profits.

•Corporation (or C-Corporation): This structure separates the owner from the business entity. Owners are not personally at risk. However, this is more complicated to set up.

•Limited Liability Company (LLC): As the name suggests, an LLC limits the liability for a company and protects your personal assets.

Keep in mind that your choice of business structure will determine:

✓The steps you go through during your business registration

✓The taxes you pay

✓Your financial responsibility as the business owner

✓Your ability to get loans and funding from banks and other parties

To make the right choice, research the different types of business structures, take note of their pros and cons, and identify the most suitable one for your business.

Other points will be revealed in my subsequent posts.

If you need your Business Registered with CAC, you can simply call/whatsapp 07033513351.

CAC LIMITED LIABILITY COMPANY SHARE CAPITAL

Shares means the amount of rights you own in a company usually calculated in money terms. E.g if a company is said to worth 1 million shares and you have 300,000 shares out of that 1 Million shares, automatically you own 30% of that company. So when there is a profit, you get 30% of that profit and if there is a loss, you get 30% of the losses. It's not a must that the company have the said amount in their bank account to get the Company registered as an LLC.

Share capital is like the statutory worth of the company. In a private limited company, its the amount of money invested by its owners in exchange for shares of ownership.

Company directors are typically shareholders in their own companies.

Shareholders exercise certain powers over how the company is run.

P.S. I am still your CAC registration Expert.

Registering your Business requires you using the CAC portal and registering online but it requires a level of expertise which is why it is advisable to contact an accredited CAC agent. It is also good to know why you should register your business with CAC. Below are some of the reasons why your business should be registered with the Corperate Affairs Commission.

1. To protect your Brand name. Registering your business with CAC gives your business name a level of protection since no one else can use or register same name with CAC.

2. To open a Corperate account. You definitely need a CAC Certificate to open a Corperate account along with a TIN if you don't have.

3. To access Loans. No one will give you loan if your business is not Registered. One of the foremost requirements to access any loan is to have a CAC Certificate

4. To Earn customers trust. When your customers see that you have a CAC Certificate, they believe that you are legit moreso when you have a Corperate account. It gives a level of credibility

5. To win contracts. If you are bidding for any contract, you definitely need a CAC Certificate. No body or organization will award a contract to a company without a CAC Certificate

6. To legalize your Business. Once your company or business is incorporated, you can legally carryout your business anywhere in Nigeria without any harassment

7. To have your formal Certificates. You definitely going to have your legal documents as proof of Incorporation.

8.To access funds from government agencies. Government regularly give intervention funds for businesses in form of grants and loans. Most of these can only be accessed if you have a genuine CAC documents.

Having known these I bet you want to position you business for the best opportunity out there. Do not wait until that opportunity comes knocking. Prepare for it.

If you need help with getting your Business Registered with a CAC accredited agent you can contact VINE CAC ACCREDITED SERVICES 07033513351. You can simply call or whatsapp us.

If you register your business with us today, i offer to help Register your Business with SMEDAN for FREE.

Don't delay, call or whatsapp 07033513351

Our number is 07033513351