When registering a business with the CAC, you will be required to select the appropriate Nature of Business code that best describes your company's activities. These codes are essential for accurately categorizing and identifying different types of businesses.
Understanding the CAC's Nature of Business codes is crucial for businesses looking to register with the CAC and for various other purposes.
Understanding the Nature of Business: CAC’s Comprehensive List for Registration in Nigeria
Let's xplore everything you need to know about CAC's Nature of Business classification.
What is 'Nature of Business'?
The "Nature of Business" refers to the specific activities or type of trade your business entity will engage in.
When registering a business entity with the CAC, such as a Private Limited Company, Sole Proprietorship, or Incorporated Trustees, you are required to define what the company will be doing, i.e., its business activities.
This classification helps the government, regulatory bodies, and the public understand the scope and nature of your company’s operations. It also helps to ensure that businesses are adhering to relevant legal and regulatory frameworks specific to their industry.
Importance of Specifying Nature of Business
- Legal Compliance: Certain business activities require specific licenses or permits. Your chosen nature of business helps authorities determine which regulations apply to your company.
- Taxation: Different business activities may be subject to different tax rates or incentives. Your classification can impact your tax obligations.
- Business Opportunities: Potential clients or partners often search for businesses by their nature of business. An accurate classification can help you attract relevant opportunities.
- Statistical Purposes: Government agencies use this data for economic planning and policy-making.
- Investor Information: Investors use this information to understand a company's primary activities and assess potential risks or opportunities.
How to Choose the Right Nature of Business
Selecting the correct nature of business is crucial. Here's how to approach it:
- Identify Your Primary Activity: What is the main product or service your business provides?
- Consider Future Plans: If you plan to expand into other areas, you might want to choose a broader classification.
- Be Specific: While it's tempting to choose a broad category, being specific can help you stand out in your niche.
- Multiple Activities: If your business engages in multiple activities, choose the one that generates the most revenue or is central to your operations.
- Seek Professional Advice: If you're unsure, consult with a business registration expert or a CAC official.
The Role of CAC in Regulating Nature of Business
The CAC has established guidelines and regulations governing how businesses should define their nature during registration:
- Approval Process: The CAC reviews submitted applications to ensure that the specified nature aligns with existing regulations and does not conflict with other registered businesses.
- Monitoring Compliance: Once registered, businesses are subject to monitoring by regulatory bodies to ensure they operate within the defined nature. Any significant deviation may lead to penalties or revocation of registration.
- Updating Information: If a business changes its operations significantly after registration (e.g., diversifying into new areas), it must notify the CAC and update its nature of business accordingly.
Changing Your Nature of Business
As businesses evolve, their primary activities may change. The CAC allows companies to update their nature of business.
If your primary business activity has significantly shifted from what you initially registered, file for a change with the CAC. This usually involves submitting a resolution from your board of directors approving the change.
Understanding the Classification System
The CAC's Nature of Business classifications cover a wide range of economic activities, from traditional sectors like agriculture and manufacturing to modern service industries and specialized professions.
These classifications are designed to be specific enough to accurately describe a business's primary activities while being broad enough to accommodate various subtypes within each category.
Major Categories of Nature of Business
The CAC provides a list of standard descriptions for various types of businesses. Applicants should select descriptions that best fit their intended operations. Common categories include:
- Abattoir and meat selling services: Slaughterhouses and meat distribution.
- Accommodation: Lodging and housing services.
- Accounting/auditing consultancy: Financial auditing and consultancy services.
- Accounting/auditing, taxation and financial management consultancy: Comprehensive financial services including auditing, taxation, and management.
- Accounting and general goods delivery and merchandise movers: Financial services combined with logistics.
- Activities auxiliary to financial services and insurance activities: Support services for financial and insurance sectors.
- Activities of extraterritorial organizations and bodies: Operations of international organizations.
- Activities of head offices, management consultancy activities: Services provided by company headquarters and management consultants.
- Activities of households as employers of domestic personnel: Hiring and management of domestic staff.
- Activities of membership organizations: Services for professional and trade associations.
- Advertisement: Advertising services across various media.
- Advertising and marketing research: Services focused on market research and advertising strategies.
- Aeronautic engineering/consultancy: Engineering and consulting in the aerospace sector.
- Agricultural engineering: Engineering services for agricultural development.
- Air transport: Air transportation services.
- Aluminum manufacturing, works, sales and fittings: Production and sales of aluminum products.
- Ambulance services: Emergency medical transport.
- Animal husbandry services: Livestock breeding and management services.
- Apprenticeship and training services: Vocational training and apprenticeship programs.
- Aquarium services: Services related to the maintenance and installation of aquariums.
- Arbitration/mediation services: Conflict resolution services through arbitration and mediation.
- Architectural and engineering activities, technical testing and analysis: Design, engineering, and technical analysis services.
- Architectural practice and consultancy: Architectural design and consultancy services.
- Art galleries, museums and monuments services: Management and operation of cultural institutions.
- Artiste management and services: Management services for artists and performers.
- Arts, crafts and designing: Creative design and crafts services.
- Auctioneering services: Auction management and sales services.
- Automated car wash services: Mechanized car cleaning services.
- Automobile repairs/mechanical services: Vehicle repair and maintenance services.
- Automobile towing services: Vehicle towing and recovery services.
- Aviary services: Management and maintenance of aviaries.
- Bakery services: Production and sale of baked goods.
- Banking and finance: Banking and financial services.
- Bar services: Operation of bars and lounges.
- Beauty and salon services: Personal grooming and beauty services.
- Beauty pageants: Organization of beauty contests.
- Black smith services: Metalworking and blacksmithing services.
- Block industry: Manufacturing of building blocks.
- Boat and canoe construction: Building of boats and canoes.
- Borehole drilling and water works: Drilling services for water access.
- Boutique services: Retail sales of fashion items.
- Brewery services: Production and sale of beer and other beverages.
- Bricklaying. Masonry services: Construction and masonry services.
- Building works: General building construction services.
- Bulk SMS services: Mass messaging services.
- Business support/development services: Services aiding business growth and development.
- Car wash services: Vehicle cleaning services.
- Carpentry/upholstery services: Woodworking and furniture repair services.
- Catering services: Food preparation and catering for events.
- Chemical engineering services: Engineering services for chemical production.
- Chemist/nursing home: Pharmaceutical services and residential care.
- Church: Religious organization services.
- Cinematography/theaters services: Film production and theater operation.
- Civil engineering: Infrastructure design and construction services.
- Cleaning/waste disposal services: Residential and commercial cleaning and waste management.
- Clearing and forwarding clinic and maternity home: Medical and logistical services.
- Cobbler services: Shoe repair services.
- Cold room services: Cold storage facilities.
- Commission agency: Agencies that act on behalf of clients in transactions.
- Community-based association: Local community groups and organizations.
- Community health center: Health services provided at the community level.
- Company liquidation services: Services related to the dissolution of companies.
- Company secretarial services: Corporate governance and secretarial services.
- Computer programming, consultancy and related activities: IT services including programming and consulting.
- Construction of buildings: Building construction services.
- Creative, art and entertainment activities: Services in the creative and entertainment sectors.
- Crop and animal production, hunting and related services activities: Agricultural production and related services.
- Curriculum planning/development: Educational planning and curriculum design.
- Cybercafé and business center: Internet and business services.
- Deal in general goods and manufacturers’ representatives: Trading and representation of manufacturers.
- Dental practices and services: Dental care services.
- Domestic support services: Domestic help and housekeeping services.
- Driving school services: Driver education and training.
- Dry cleaning and laundry services and industrial cleaning services or training: Cleaning services for personal and industrial needs.
- Education: Educational institutions and services.
- Educational services and consultancy: Consultancy in educational planning and services.
- Electrical engineering services: Engineering services in the electrical sector.
- Electrical services: General electrical work and maintenance.
- Electricity, gas, steam and air conditioning supply: Energy and utilities services.
- Employment activities: Job placement and recruitment services.
- Energy production: Production of energy from various sources.
- Engineering services: General engineering services.
- Entertainment services: Services related to the entertainment industry.
- Environmental and landscaping services: Services for environmental management and landscaping.
- Errand and home delivery services: Delivery and personal assistance services.
- Estate agency: Real estate buying, selling, and leasing.
- Estate and facility management: Property and facility management services.
- Estate surveying and valuation: Property valuation and surveying services.
- Event planning: Organization and coordination of events.
- Events management, general merchandise, wholesale and retail trade: Comprehensive event management and trade services.
- Extraction of crude petroleum and natural gas: Oil and gas extraction.
- Farming: Agricultural activities and crop production.
- Fashion designing/tailoring services: Custom clothing design and tailoring.
- Feasibility studies: Analysis of project viability.
- Film production services: Creation and production of films.
- Financial consultancy: Financial advice and planning.
- Financial services activities, except insurance and pension funding: Financial services excluding insurance and pensions.
- Fire and safety services: Fire prevention and safety services.
- Fish farming/aquaculture: Breeding and raising fish.
- Fishing and aquaculture: Fishing and aquatic farming.
- Food and beverages services activities: Food and beverage service businesses.
- Food production and processing services: Manufacturing and processing of food products.
- Forensic accounting services: Financial investigations and fraud detection.
- Forestry & logging: Management and harvesting of forest resources.
- Foundation based association: Charitable and non-profit organizations.
- Frozen foods services: Production and sale of frozen food products.
- Fruits/fruit juice production and sales: Manufacturing and selling fruit juices.
- Fumigation and pest control services: Pest extermination and control services.
- Gambling and betting activities: Gambling and betting services.
- Gardening services: Landscaping and garden maintenance.
- General contract and merchandise: Broad contracting and trading services.
- Geosciences services: Geological and environmental consulting.
- Glass works: Production and repair of glass products.
- Gold smiting services: Gold crafting and jewelry making.
- Graphic designing: Visual design and graphic services.
- Guidance and counselling services: Personal and professional counseling.
- Gymnasium services: Fitness and gym services.
- Hardware supply: Sale of hardware products.
- Hat making services: Custom hat design and manufacturing.
- Honey processing: Production and processing of honey.
- Horticulture services: Plant cultivation and garden maintenance.
- Hotel and hospitality: Accommodation and hospitality services.
- Hotel reservation services: Booking and reservation services for hotels.
- Human health activities: Health care services.
- Human resources management and development services: HR management and development.
- Hydro electrical work: Services related to hydroelectric power.
- ICT training and consultancy: IT training and consulting services.
- Import and export of general goods: Trading of imported and exported goods.
- Industrial and safety equipment services: Sale and maintenance of industrial safety equipment.
- Industrial cleaning services: Professional cleaning services for industries.
- Information service activities: Information and data services.
- Installation of CCTV and allied products: Security camera installation.
- Insurance: Insurance services.
- Insurance consultancy services: Consulting services for insurance.
- Interior/exterior decoration services: Interior and exterior design services.
- Internet services: Internet provision and related services.
- Kennel services: Dog breeding and care services.
- Laboratory services: Scientific and medical testing services.
- Land transport and transport via pipelines: Land and pipeline transportation services.
- Laundry and dry cleaning service: Cleaning services for clothing.
- Leather works/tannery services: Leather processing and product manufacturing.
- Legal and accounting activities: Legal and accounting services.
- Legal practice and consultancy: Legal representation and consulting.
- Legislative consultancy: Consulting on legislative matters.
- Libraries, archives, museums and other cultural activities: Management of cultural and historical institutions.
- Library services: Library management and services.
- Livestock feeds production and distribution: Manufacturing and distribution of animal feeds.
- Livestock management services: Management of livestock farms.
- Lubricant/oil services: Production and sale of lubricants.
- Maintenance and repair of refrigerator and air condition: Appliance maintenance and repair services.
- Makeup and makeover services: Beauty and makeover services.
- Management consultancy services: Business management consulting.
- Manufacture of basic metals: Production of metal products.
- Manufacture of basic pharmaceutical products and pharmaceutical preparations: Production of medicines and pharmaceuticals.
- Manufacture of beverages: Beverage production.
- Manufacture of chemicals and chemical products: Production of chemical substances.
- Manufacture of computer, electronic and optical products: Production of tech products.
- Manufacture of electrical equipment: Production of electrical devices.
- Manufacture of fabricated metal products, except machinery and equipment: Metal fabrication excluding machinery.
- Manufacture of food products: Production of various food items.
- Manufacture of furniture: Production of furniture.
- Manufacture of motor vehicles, trailers and semi-trailers: Vehicle manufacturing.
- Manufacture of other transport equipment: Production of transport equipment other than vehicles.
- Manufacture of paper and paper products: Production of paper goods.
- Manufacture of rubber and plastic products: Production of rubber and plastic items.
- Manufacture of textiles: Textile manufacturing.
- Manufacture of tobacco products: Production of tobacco products.
- Manufacture of wearing apparel: Clothing manufacturing.
- Manufacture of wood products: Production of wooden goods.
- Manufacturer’s representation, import, export and general merchandise: Representation and trading of manufactured goods.
- Manufacturing of candles and associated products: Candle production.
- Manufacturing of plastic products: Plastic goods manufacturing.
- Manufacturing services: General manufacturing activities.
- Marketing services: Advertising and marketing services.
- Mechanical works: Mechanical engineering and repair services.
- Medical laboratory services: Diagnostic and medical testing.
- Medical practice and consultancy: Healthcare provision and consulting.
- Metal works: Metal fabrication and repair.
- Midwifery services: Childbirth and prenatal care.
- Milling and grinding services: Milling grains and grinding materials.
- Mining and grinding services: Extraction and processing of minerals.
- Mining of coal and lignite: Coal and lignite extraction.
- Mining of metal ores: Extraction of metal ores.
- Mining support services activities: Support services for mining operations.
- Manufacturing of candles and associated products: Production of candles and related items.
- Manufacturing of plastic products: Production of plastic goods.
- Manufacturing services: General manufacturing activities.
- Marketing services: Promotion and advertising services.
- Mechanical works: Mechanical engineering and repair services.
- Medical laboratory services: Diagnostic and medical testing services.
- Medical practice and consultancy: Healthcare provision and medical consultancy.
- Metal works: Metal fabrication and repair services.
- Midwifery services: Childbirth and prenatal care services.
- Milling and grinding services: Milling grains and grinding materials.
- Mining and grinding services: Extraction and processing of minerals.
- Mining of coal and lignite: Coal and lignite extraction.
- Mining of metal ores: Extraction of metal ores.
- Mining support services activities: Support services for mining operations.
- Modeling services: Services for fashion and commercial modeling.
- Montessori supplies: Provision of Montessori educational materials.
- Montessori training: Training for Montessori educators.
- Mortuary and funeral services: Funeral and mortuary services.
- Mosque: Islamic place of worship.
- Motion picture, video and television program production, sound recording: Production of visual and audio media.
- Music production: Music recording and production services.
- Network services: Telecommunications and networking services.
- Not specified: Miscellaneous services not classified elsewhere.
- Office administrative, office support & other business support services: Administrative and business support services.
- Oil and gas services: Services for the oil and gas industry.
- Operate bible college: Educational institution for biblical studies.
- Operate community health care center: Local health care services.
- Operate computer training school: IT education and training.
- Operate confectionary shop: Retail sale of sweets and baked goods.
- Operate crèche and day care: Childcare services.
- Operate departmental stores: Large retail stores offering various products.
- Operate fast food outlet: Quick-service restaurants.
- Operate hospital/clinic: Medical care facilities.
- Operate Islamic school: Educational institutions based on Islamic teachings.
- Operate maternity clinic: Healthcare for expectant mothers.
- Operate nursery and primary school: Early childhood and primary education.
- Operate restaurant and catering services: Food service and event catering.
- Operate supermarkets: Large retail stores for groceries and household items.
- Operate viewing center: Public spaces for viewing events and broadcasts.
- Optical services: Eye care and eyewear services.
- Organize dance class services: Dance education and training.
- Organizing conferences: Planning and hosting conferences.
- Organizing seminars/symposiums: Hosting educational and professional events.
- Other manufacturing: Miscellaneous manufacturing activities.
- Other mining and quarrying: Extraction of non-metallic minerals.
- Other personal services activities: Various personal service activities.
- Other professional, scientific and technical activities: Miscellaneous professional services.
- Painting: Application of paint on surfaces.
- Painting services: Professional painting and decorating.
- Panel beating/car spraying services: Auto body repair and painting.
- Parks and recreation services: Management of recreational facilities.
- Patent/medicine services: Pharmaceutical sales and patent medicine.
- Pedicure and manicure services: Nail care services.
- Perfumery services: Production and sale of perfumes.
- Pharmaceutical services: Dispensing and sale of medications.
- Photography services: Professional photography.
- Physiotherapy services: Physical rehabilitation and therapy.
- Piggery services: Pig farming and pork production.
- Plant and equipment management: Management of industrial equipment.
- Plastic manufacturing services: Production of plastic goods.
- Plumbing services: Installation and repair of plumbing systems.
- Postal and courier activities: Mail and delivery services.
- Poultry services: Chicken farming and egg production.
- Printing and reproduction of recorded media: Printing and media reproduction.
- Printing press: Commercial printing services.
- Private equity fund: Investment in private equity.
- Production and distribution of renewable energy: Renewable energy services.
- Production and sale of polythene bags: Manufacturing of plastic bags.
- Production and sale of bottled and packaged water: Water bottling and distribution.
- Production and sale of cooking or edible oil: Manufacturing of cooking oils.
- Production and sale of tiles and ceramic products: Tile and ceramic manufacturing.
- Production and sales of footwear: Manufacturing of shoes and footwear.
Conclusion
Understanding these classifications can help entrepreneurs and business owners position their companies effectively within the Nigerian business ecosystem, ensure compliance with relevant regulations, and potentially identify new opportunities within their sector.
