Starting a business is an exciting journey, and in Nigeria, the first official step is often with the Corporate Affairs Commission (CAC). While many entrepreneurs see the CAC as just a website for registration, it is a powerful regulatory body with a structured process designed to create a credible and compliant corporate landscape.
Understanding the Corporate Affairs Commission (CAC): A Comprehensive Look at Nigeria's Business Regulator
This article will pull back the curtain on the CAC, explaining its role, the types of businesses you can register, and the step-by-step journey your application takes from submission to final approval.
What is the CAC and Why Does it Exist?
The Corporate Affairs Commission (CAC) is Nigeria’s official body for regulating the formation, operation, and winding up of companies, business names, partnerships, and incorporated trustees.
Established in 1990 under the Companies and Allied Matters Act (CAMA) to replace the old Ministry of Trade registration system, the CAC was created to provide a dedicated regulator for corporate entities, maintain a central public register of businesses, and establish clear procedures for incorporation, compliance, and dissolution. Headquartered in Abuja with offices across all states.
The CAC has legal personality, meaning it can sue and be sued, own assets, and perform its functions independently. Its core mandate is to give legal recognition to businesses, ensure compliance with corporate laws, keep accurate public records of registered entities, and remove non-compliant businesses from the register.
Think of the CAC as both a gatekeeper and a librarian for Nigeria’s business environment; it decides which entities are legally recognized and keeps a permanent public record of their existence. Whether you’re registering a small enterprise, a non-profit, or a limited liability company, the CAC is your first point of contact for securing legitimacy, transparency, and legal protection for your business.
Re-establishment of the Corporate Affairs Commission (CAC) Under CAMA 2020
With the passage of CAMA 2020, the CAC was formally re-established as a statutory corporation, retaining its powers while introducing modern reforms. Section 1(1) confirms its perpetual succession, common seal, and authority to acquire, hold, and dispose of property. It remains a legal entity with the capacity to sue and be sued in its corporate name.
This was not the creation of a new institution but a continuation of the CAC established in 1990. Section 869(2) ensures all rights, obligations, and functions from CAMA 1990 carry forward under the new Act. The reforms strengthened the Commission’s role as Nigeria’s apex authority for company formation, regulation, and dissolution.
The CAC Board: Membership Composition, Tenure, and Role
The Corporate Affairs Commission (CAC) is overseen by a board that sets general policy direction and ensures the Commission’s operations comply with the Companies and Allied Matters Act (CAMA) 2020 and international best practices. Its composition brings together representatives from various sectors, providing the diversity of expertise needed for effective decision-making.
Except for the Registrar-General, board members serve part-time for a three-year term, renewable once. The Minister, with the President’s approval, may remove a member if it is deemed in the Commission’s best interest. A member automatically ceases to hold office if declared of unsound mind, bankrupt, convicted of a felony or dishonesty-related offence, guilty of serious misconduct, or disqualified from practicing their profession.
The board’s main responsibilities include approving strategic plans, ensuring compliance with CAMA 2020, determining staff terms of service, and fixing remuneration in line with national guidelines. Meetings require a quorum of five members, and anyone with a direct interest in a matter must declare it and abstain from related decisions.
The CAC board comprises 10 members, representing the following stakeholder groups:
Chairman – Ademola Seriki (appointed by the President)
Registrar-General/CEO – A. G. Abubakar
Manufacturers Association of Nigeria (MAN) – Alhaji Ali S. Madugu, mni
Institute of Chartered Accountants of Nigeria (ICAN) – Mazi Nnamdi Anthony Okwuadigbo
Nigerian Bar Association (NBA) – Bello Aminu Abdullahi
Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) – Hajiya Saratu Iya Aliyu
Federal Ministry of Industry, Trade and Investment (FMITI) – Muhammad Danjuma Alhassan
Securities and Exchange Commission (SEC) – Ms. Frana Chukwuogor
Federal Ministry of Justice – Mrs. Antoinette Ifeanyi Oche-Obe
The Role of the Registrar-General at the Corporate Affairs Commission (CAC)
The Registrar-General is the head of the Corporate Affairs Commission (CAC), serving as its chief executive and accounting officer. This position is central to ensuring the Commission operates effectively and fulfills its mandate under the CAMA 2020.
The role requires specific qualifications: the individual must be a legal practitioner in Nigeria for at least 10 years and have a minimum of 8 years of experience in company law or administration. These stringent requirements ensure that the Registrar-General has the expertise to manage the complexities of corporate regulation.
As the chief executive, the Registrar-General is responsible for the overall management and administration of the Commission, implementing the board’s directives and ensuring smooth daily operations. As the accounting officer, they oversee all financial controls and the disbursement of funds. The terms of their appointment are set in their letter of appointment and can be further determined by the CAC board with the approval of the President.
Funding and Financial Accountability of the CAC
The Corporate Affairs Commission (CAC) operates on a dedicated fund primarily sourced from allocations by the Federal Government and other income generated from its functions. This fund is used for its administrative costs, staff salaries and pensions, maintenance of its assets, and for any expenses incurred while carrying out its duties under the CAMA 2020.
To ensure financial accountability, the CAC must maintain proper accounts and prepare an annual financial statement as directed by the President. These accounts are then audited within six months of the year-end by independent auditors.
The Commission is also required to submit a yearly estimate of its expenditure and income to the President by September 30. Finally, by June 30 of each year, the CAC must present a comprehensive annual report, including its audited accounts, to the President.
Functions and Powers of the Corporate Affairs Commission (CAC)
The power and duties of the Corporate Affairs Commission (CAC) are provided under Section 7 of the Companies and Allied Matters Act (CAMA) 2020 and other relevant laws.
Administration of CAMA: The CAC administers and enforces the provisions of CAMA, regulating and supervising the formation, incorporation, management, and winding up of companies. It ensures that businesses comply with statutory requirements, maintaining high standards of corporate governance.
Business Registration: The Commission registers and incorporates companies, business names, and incorporated trustees. It vets proposed business names to prevent duplication or misleading identities and ensures that every registered entity meets the legal requirements for operation in Nigeria.
Registry Management: The CAC maintains a central registry of companies and business names, with offices in all states of the federation. This registry provides public access to information about registered entities, enhancing transparency and trust in the Nigerian business environment.
Issuance of Certificates: One of the CAC’s key functions is issuing Certificates of Incorporation, which grant legal recognition to businesses. This enables them to operate officially under Nigerian law, enter into contracts, open corporate bank accounts, and access opportunities such as government contracts and funding.
Post-Incorporation Services: The Commission processes statutory filings after incorporation, including annual returns, share capital increases, changes to the company name or address, and amendments to the Memorandum and Articles of Association. It also registers charges, mortgages, and other corporate documents.
Investigation and Enforcement: Where the interests of shareholders or the public are at risk, the CAC can investigate the affairs of a company. It enforces compliance with CAMA by imposing penalties, revoking business names, or delisting companies that fail to meet their obligations, such as filing annual returns.
Ancillary Services: The CAC provides additional services such as selling statutory forms, issuing Certified True Copies of filed documents, responding to public inquiries and complaints, and managing the accreditation of lawyers, chartered accountants, and chartered secretaries who interact directly with the Companies Registry.
Special Powers: The Commission also offers same-day incorporation services for eligible companies, maintains a nationwide database of registered entities, and undertakes any other activities necessary to give full effect to CAMA and related legislation.
Entities Registered by the CAC
The CAC registers different types of entities to suit various business and organizational needs. The three most common for entrepreneurs are:
Business Name (Sole Proprietorship / Partnership) – A quick, affordable option for small businesses. It’s easy to set up but does not create a legal separation between the owner and the business.
Private Limited Company (LTD) – The most popular choice for growth-focused businesses. It’s a separate legal entity that provides limited liability protection, safeguarding the owners’ personal assets.
Company Limited by Guarantee (LTD/GTE) – Commonly used for non-profits, charities, and NGOs. It has no shareholders and cannot distribute profits; all income must go towards its stated objectives.
Unlimited Company – A company where members have unlimited liability for its debts. Rarely used, typically for specialized business arrangements.
Public Limited Company (PLC) – A company that can offer its shares to the public and may be listed on a stock exchange. Suitable for large enterprises seeking public investment.
Incorporated Trustees – Used for NGOs, religious bodies, associations, and other not-for-profit groups. Operates under a board of trustees rather than shareholders.
Limited Liability Partnership (LLP) – A hybrid structure combining partnership flexibility with limited liability protection for its partners.
Limited Partnership (LP) – A partnership with at least one general partner (unlimited liability) and one limited partner (liability limited to their investment).
The Corporate Affairs Commission (CAC) and Technology
The Corporate Affairs Commission (CAC) has transformed its operations through technology, particularly with the launch of the Companies Registration Portal (CRP) and a new AI-powered registration system. These innovations allow entrepreneurs to complete processes, such as name reservation, business registration, and certificate downloads, entirely online, from anywhere in Nigeria or abroad.
The AI-driven portal automates key steps, offering instant name approvals (with intelligent suggestions for alternatives) and enabling registration using only the NIN of a director or proprietor.
Certificates can be issued in under 30 minutes, subject to real-time verification, with AI-powered photo ID matching as a backup for external validation delays. The system is designed to minimize human interference, improve transparency, and enhance user experience while reducing costs.
Ongoing reforms include a planned mobile app for on-the-go transactions, two-factor authentication for company record changes, and a strengthened 24/7 call center. These efforts are part of the CAC’s broader vision to align with global best practices, speed up business registration, and make doing business in Nigeria more seamless than ever before.
Working with CAC-Accredited Agents
While the CAC’s online system is user-friendly, many applications are delayed due to incomplete or non-compliant submissions. CAC-accredited agents, such as lawyers, chartered accountants, and chartered secretaries, have direct access to the filing portal, up-to-date knowledge of CAMA requirements, and experience handling complex filings.
SplashDict, founded by a Chartered Secretary and ICSAN Associate, provides end-to-end CAC services for entrepreneurs, startups, and established companies. From company formation and business name registration to post-incorporation changes, share capital adjustments, and annual returns, we ensure every filing is accurate, compliant, and processed without unnecessary delays.
By working with SplashDict, you benefit from:
Streamlined Processes: We prepare and submit all documents on your behalf.
Fewer Delays & Rejections: Our expertise ensures compliance from the start.
Ongoing Compliance Support: We monitor deadlines and ensure your business remains in good standing throughout the year.
With our accredited access and hands-on approach, SplashDict makes CAC registration and compliance simple, fast, and stress-free, so you can focus on running your business.
Ready to Take the Next Step?
Business registration isn’t just a formality; it’s your legal foundation for growth, credibility, and protection. With SplashDict, you’ll have a dedicated CAC-accredited partner handling every detail quickly, correctly, and affordably.
Start today and turn your business idea into a legally recognized reality.
