The federal government has recently introduced free business registration with the CAC, providing an opportunity for entrepreneurs to formalize their enterprises and gain access to various government initiatives. In this guide, we will look into the advantages of free CAC business registration and how it can positively impact your business.
This opportunity allows business owners to register their businesses and gain access to grants or federal government loans.
Many business owners in Nigeria do not possess CAC registration certificates, making it difficult for them to survive when faced with challenges.
The Covid-19 pandemic has adversely affected many business owners, preventing them from receiving government assistance due to their businesses being unregistered.
Hence, the federal government introduced the initiative for free CAC registration to aid businesspersons in registering their businesses, providing them with legal protection and the ability to obtain grants or loans to sustain their businesses.
Now, let’s look into the benefits of CAC registration and learn how to apply for free business name registration with CAC.
Benefits of CAC Business Registration in Nigeria
Below are the benefits of registering a business with the Corporate Affairs Commission:
1. Hiring employees
Registered businesses have the legal right to employ full-time workers and pay them. They can also request Corps members from the National Youth Service Corps (NYSC) and hire other intern workers.
2. Government contracts/supplier arrangements
Business registration is a requirement for organizations planning to secure government contracts. Additionally, registered businesses are eligible for supplier discounts unavailable to unregistered businesses.
3. Business trips to foreign countries
Registered businesses can easily obtain visas and travel to foreign countries for business purposes. Most countries welcome foreign investors, as such investments contribute to their economy.
4. Opening business bank accounts
Registered businesses can open customized business bank accounts in Nigeria using their business names. A business bank account lends a more professional appearance to small businesses and is more trusted for payments.
5. Protecting your business name
Registering your business with the Corporate Affairs Commission safeguards your business name from being used by others. No one else can register a business with the same or similar name.
6. Accessing loans
Registered businesses can apply for and easily obtain business loans by providing their business registration certificate along with other requirements.
7. Certificate of incorporation
After registration, businesses receive a certificate of incorporation from the Corporate Affairs Commission, confirming the business’s legality and recognition by the government.
8. Legal liability protection
Registered businesses receive legal liability protection, meaning the business, not the owner, is held responsible for certain accidents and liabilities. This increases investor confidence, knowing the owner is not personally liable for the company’s obligations.
9. Reputation with customers
Registered businesses have more credibility with customers than unregistered ones. Potential clients gain assurance that the business is legitimate, even if they haven’t worked with it before.