When you are buying something from a company or want to form a business partnership with it, you want to know that the whole thing is perfectly legal and that you don’t face the possibility of a scam. One of the easiest ways to ensure that a company operates legally in Nigeria is to check whether it’s registered with CAC, and here is how to do it.
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1. Why is the CAC registration important?
CAC, or Corporate Affairs Commission, was founded in 1990 under the Companies and Allied Matters Act with the sole purpose of regulating the creation and management of a new business. Registering with CAC is an essential step on the way of launching a trusted business and you should not do business with anyone who is not officially registered with CAC, especially when a large capital is involved on your part.
When a business is registered with CAC, it means that the owner went through the trouble of gathering the necessary documents, filing them to the Commission, and paying the admission fees. It also means that someone at CAC took a look at the business and the supplied documents and verified their authenticity, so you can work with the company and rest assured it won’t just run away with your money.
2. How to check whether a business is registered with CAC
To make it easier for customers and other businesses to see whether a business or a company is registered with the Corporate Affairs Commission, CAC launched a fast and convenient solution. To access the information, you will need a computer or a mobile phone and no more than 5 minutes of your time. Here are the steps you need to take to find out whether a business is CAC-registered:
- Go to the official CAC website by following this link.
- Click the Public Search button underneath the header.
- Enter the company name into the search field.
- Review the search results to find what you’re looking for.
- In the top menu, you can switch between Business Name, Company, and Incorporated Trustees tabs.
- See the company’s legal address and registration date.
- If you need more detailed information about the company, it is available for a small fee.
That’s it! If you enter the company name and there are zero results, it means that the company is not registered with CAC and is probably best to be avoided. There are also situations where you find the exact company name, but the CAC website says it’s under registration, and it only means that the company has recently filed the request to be registered at CAC or updated its information. It’s typically safe to work with such companies.
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Finally, if you are searching for a company that has a very common name, your search results may be overcrowded and it can be difficult to find what you need. In that case, you can specify your request by including the company type: PLC, Ltd, and so on. If you know the name of the person in charge of the company but not the company name itself, you can also search for the person’s name to see whether he is actually who he says he is.
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