CAC Delisting: Find Six Steps to Protect Company Legally Functional
Find Six Steps to Protect Company Legally Functional.
CAC Company Delisting poses a growing threat to Nigerian entrepreneurs as the Corporate Affairs Commission intensifies efforts to strike off inactive companies.
Being struck off removes a company’s legal status, leaving owners vulnerable when applying for loans, investments, or bidding for contracts.
To protect your business, follow these six essential steps based on the Companies and Allied Matters Act (CAMA 2020):
1. Choose a Unique Business Name
Select two distinct names and check their availability on the CAC portal. Names must not be misleading or identical to existing firms. Approved names can be reserved for 60 days with a fee of ₦500.
2. Prepare Key Governing Documents
Draft a Memorandum of Association (business objectives and share capital) and Articles of Association (internal governance). Templates are available on the CAC portal and must comply with Sections 27 and 28 of CAMA 2020.
3. Declare Share Capital
Specify authorized share capital, with a minimum of ₦100,000 for private companies. Higher capital increases filing fees and stamp duty, per Section 27(2) of CAMA 2020.
4. Appoint Directors and Shareholders
Provide details of at least two directors (or one for small companies) and at least one shareholder. Directors must be 18+, of sound mind, and provide names, addresses, occupations, and valid IDs as required by Sections 20 and 271.
5. Submit Registration Documents
Submit CAC Form CAC1.1, the Memorandum and Articles of Association, and director/shareholder details via the CAC online portal. Pay statutory fees and stamp duty based on your share capital.
6. Comply Post-Registration
After obtaining your Certificate of Incorporation, register for a Tax Identification Number (TIN) and secure necessary permits.
Crucially, file annual returns within 42 days of your anniversary, declare Persons with Significant Control (PSC), and pay fees promptly to avoid delisting.
Entrepreneurs who follow these steps will protect their businesses from CAC Company Delisting, safeguard investments, and maintain legal compliance under Nigerian law.
