CAC Registration: 6 Steps Every Nigerian Business Must Follow to Avoid Delisting
- The Corporate Affairs Commission (CAC) recently deleted about 247,000 companies from its register
- The deleted companies have failed to file the requisite documents with the commission for over two decades
- However, to forestall further delisting, there are some critical steps to follow to avoid being deleted from the commission database
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
In Nigeria, when the Corporate Affairs Commission (CAC) strikes off a company, it signifies that the business has been legally removed from the register of active firms.
This means the company no longer exists in the eyes of the law.
Source: Getty Images
Many entrepreneurs only discover this problem when trying to open a bank account, apply for government contracts, or attract investors, only to be told that their company has been delisted.
To avoid such setbacks, proper registration under the Companies and Allied Matters Act (CAMA) 2020 is essential.
Below are six steps to register your company correctly and keep it compliant with CAC rules.
Step 1: Select a unique business name
The first step is to choose two distinct names and confirm their availability on the CAC online portal (icrp.cac.gov.ng).
Names must not be identical to existing companies, misleading, or prohibited under Section 30 of CAMA 2020. Once approved, you can reserve the name for 60 days by paying a ₦500 fee.
Step 2: Prepare Memorandum and Articles of Association
Next, prepare your company’s Memorandum of Association (which states your business objectives, registered address, and share capital) and Articles of Association (which outline internal governance rules).
These documents must comply with Sections 27 and 28 of CAMA 2020 and be signed by the promoters. Templates are available on the CAC website for guidance.
Step 3: Declare share capital
Every company must declare its authorised share capital. For private companies, the minimum is ₦100,000.
While higher share capital provides more credibility, it also increases filing fees and stamp duty, making this a key financial decision under Section 27(2) of CAMA 2020.
Step 4: Appoint directors and shareholders
Provide the personal details of at least two directors (or one for small companies) and at least one shareholder.
Required information includes names, addresses, occupations, and valid identification such as a passport or national ID card. Directors must be at least 18 years old and mentally sound, in line with Sections 20 and 271 of CAMA 2020.
Step 5: Submit registration documents
Complete Form CAC1.1 and upload it along with your MEMART, directors’ and shareholders’ details, notice of registered office, and a compliance statement.
Submissions are made through the CAC online portal, with filing fees and stamp duty determined by the declared share capital.
Step 6: Obtain Certificate of Incorporation and Maintain Compliance
Once approved, the CAC will issue a Certificate of Incorporation, confirming that the company is now a legal entity.
After registration, business owners must also register for a Tax Identification Number (TIN) with the Federal Inland Revenue Service (FIRS), secure any required permits, and file annual returns within 42 days of the company’s anniversary date.
How to prevent delisting
To stay compliant, companies must consistently submit annual returns, disclose Persons with Significant Control (PSC), and pay statutory fees promptly.
Neglecting these obligations could lead to delisting, effectively erasing your company from Nigeria’s corporate records.
For entrepreneurs, the key lesson is clear: registering a company goes beyond incorporation.
Ongoing compliance with CAC requirements is what keeps your business legally alive.
CAC deletes 247,000 companies from database
On Friday, August 15, 2025, the CAC announced that it had struck off the names of about 247,000 companies from its register.
The action came amid failures of the companies to comply with CAC requirements under the CAMA Act.
Source: Twitter
The commission said that some of the firms have not filed annual returns for about 20 years.
CAC to arrest business owners operating without registration
Legit.ng earlier reported the CAC has announced plans to clamp down on individuals and businesses operating in Nigeria without proper registration.
The commission warned that violators risk arrest and prosecution if they fail to comply within six weeks.
In a public notice issued on Tuesday, April 29, 2025, via X, the commission stated that carrying on business without registering under the Companies and Allied Matters Act (CAMA) 2020 is a criminal offence punishable under Section 863 of the Act.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
