The Corporate Affairs Commission (CAC) has issued a stern warning to Nigerian business owners, stressing the need for strict compliance with regulatory requirements or risk having their companies delisted from its register.
The Commission explained that the ongoing “striking-off” exercise is aimed at removing inactive companies from its records—legally rendering them non-existent. Many entrepreneurs, it noted, only discover that their companies have been struck off when they attempt to apply for loans, attract investors, or bid for government and private sector contracts.
To help businesses remain compliant, the CAC outlined key steps required under the Companies and Allied Matters Act (CAMA) 2020 to maintain an active legal status:
1. Choose a Unique Business Name
Business promoters must propose at least two distinct names and confirm their availability on the CAC portal. In line with Section 30 of CAMA 2020, names that are misleading, identical, or prohibited will not be approved. Once approved, a name can be reserved for 60 days upon payment of a ₦500 fee.
2. Prepare Required Documents
Companies must provide a Memorandum of Association (stating objectives and share capital) and Articles of Association (outlining governance rules). These documents, as stipulated in Sections 27 and 28 of CAMA 2020, must be duly signed by the promoters.
3. Declare Share Capital
Every company must state its authorised share capital. The law prescribes a minimum of ₦100,000 for private companies, while higher share capital attracts additional filing fees and stamp duty.
4. Appoint Directors and Shareholders
A company must have at least two directors (or one in the case of small companies) and at least one shareholder. Directors must be at least 18 years old and mentally sound, in line with Sections 20 and 271 of CAMA 2020.
5. Submit Registration Forms
All registration forms—including Form CAC1.1—as well as details of directors, shareholders, and governance documents must be uploaded via the CAC portal, alongside proof of payment for the prescribed fees and duties.
6. Stay Compliant After Registration
Upon receiving a Certificate of Incorporation, companies are required to:
Register for a Tax Identification Number (TIN) with the Federal Inland Revenue Service (FIRS).
Obtain all relevant operational permits.
Most importantly, file annual returns within 42 days of their incorporation anniversary. Failure to do so could result in delisting from the CAC register.
The Commission urged business owners to take compliance seriously, warning that ignorance of the law is not an excuse.
You can get every of our news as soon as they drop on WhatsApp ...To get all news updates, Join our WhatsApp Group (Click Here)
