Nigeria's Corporate Affairs Commission launches a groundbreaking initiative that empowers entrepreneurs. The agency provides free business name registration to 3,500 small businesses across the nation. This move marks the CAC's 35th anniversary and aims to foster economic inclusion. Officials announce the program to reduce formalization barriers for micro and small enterprises.
Hussaini Magaji, the Registrar-General, reveals the details during anniversary events in Abuja. The commission distributes slots evenly among 36 states and the Federal Capital Territory. Small business owners gain legal recognition without fees, enhancing credibility and access to resources.
This program aligns with Nigeria's push for entrepreneurship. It encourages informal operators to join the formal economy. Registered businesses unlock loans, contracts, and government support. The initiative supports President Bola Tinubu's agenda for inclusive growth.
Bank of Industry Launches Non-Interest Banking Window After Landmark CBN ApprovalWhat the CAC Free Registration Initiative Entails
The CAC targets small businesses that struggle with registration costs. Normally, business name registration fees range from N10,000 to N15,000. This free offer eliminates that hurdle for selected applicants. The program covers sole proprietorships and partnerships under business names.
Officials emphasize the role of formalization in economic development. Registered entities contribute to tax bases and data accuracy. The CAC modernizes its processes, including a new website with AI tools for guidance.
Eligibility Criteria for CAC Free Business Registration
Small businesses qualify if they operate as micro or small enterprises. The commission defines these as ventures with fewer than 10 employees or annual turnover below N50 million. Applicants must reside in Nigeria and intend to formalize operations.
No prior registration disqualifies applicants. Businesses in all sectors, from retail to services, can apply. The program prioritizes underserved areas, ensuring nationwide coverage. Women-led and youth-owned ventures may receive preference to promote diversity.
Interested parties prepare basic documents like identification and business details. The CAC verifies applications to prevent duplicates. Slots fill on a first-come, first-served basis per state.
Benefits of Registering Your Small Business with CAC
Registration protects business names from duplication. It enables bank accounts, loans, and partnerships. Formal businesses access grants from agencies like SMEDAN and BOI.
Legal status boosts customer trust. Registered firms participate in tenders and supply chains. Tax exemptions apply for turnovers under N100 million, per recent laws.
Entrepreneurs gain networking opportunities through CAC events. The formal economy reduces risks like disputes. Overall, registration drives sustainability and scalability.
Impact of CAC Free Registration on Nigeria's Economy
This initiative injects vitality into the MSME sector, which employs over 80% of Nigerians. Formalization increases GDP contributions and job creation. It aligns with global standards, attracting investments.
States benefit from better data for planning. Rivers State, with its vibrant trade, sees enhanced local commerce. Nationwide, the program reduces poverty by empowering grassroots entrepreneurs.
The CAC collaborates with Google for digital upgrades. This ensures efficient services, positioning Nigeria as a business hub in Africa.