Recently, the federal government offered free business registration with the CAC, giving business owners the chance to formally register their companies and receive access to a range of government programs. We’ll examine the benefits of free CAC business registration and how it might help your company in this tutorial.
With this chance, entrepreneurs can register their companies and apply for grants or loans from the federal government.
It is tough for many Nigerian business owners to survive when faced with obstacles because they lack CAC registration credentials.
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.
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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 that are 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.