5 ways to register your PoS business with CAC in Nigeria

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May 9, 2024
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4 min read
PoS agent attending to a customer

The Corporate Affairs Commission (CAC) has mandated all Point-of-Sale (PoS) operators and merchants of fintechs to register their businesses in compliance with the Central Bank of Nigeria (CBN) guidelines for PoS operators, The deadline for this is July 7, 2024 or operators will risk being arrested by the police. This registration is aimed at curbing the increasing rates of PoS fraud.

Here are 5 ways to register your PoS business with the CAC. Your choice will depend on your comfort level, budget, and time constraints. The methods are segmented based on whether you're comfortable with handling online processes, or you prefer a more hands-off approach.

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Do-it-yourself approach

These are self-help ways of getting the registration done from the comfort of your home either from your mobile phone or computer.

CAC Website

Here's what you'll need to do:

Step 1: Visit the CAC website.

Step 2: Create an account with your phone number or NIN by clicking the "Register" option in the top right corner of the homepage.

Step 3: Go back to the homepage and click on "Online registration".

Step 4: Follow the steps displayed on the screen, which include the following:

i. Public Search: Type your desired business name in the search box to confirm if it is available or allowed.

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ii. Reserve your name by filling out a form to secure your desired business name. Note: Classification for your PoS business is "Business Name." Complete the form and make a ₦500 payment (excluding other charges) to receive your Availability Code.

iii. Pre-Incorporation: Complete your registration using the availability code you're provided with (you'll find this on your dashboard once your business name has been reserved). 

You'll need to provide details like your business name, address, and proposed business activities. You'll also need digital copies of documents like a valid means of identification (Voter's card, International passport, National Identity card, Driver's license, etc), proof of address (utility bill, tenancy agreement), and a business plan (optional for sole proprietorships).

Step 5: Pay the registration fee (₦10,000) using any of the payment options provided.

Step 6: Submit your completed form and documents electronically. The CAC will verify your information and notify you of the outcome.

Step 7: Upon successful registration, you'll receive your Certificate of Registration sent to your email. This usually takes between three to five days.

Additional Note: Businesses are required to have a Tax Identification Number (TIN), which is a unique number issued by the Federal Inland Revenue Service (FIRS). To get one for free, visit the Joint Tax Board website, click on "Register for TIN (Non-Individual)" and follow the prompts.

If your business is in Lagos, you have to apply for your TIN from the LIRS website in three steps for free.

On the home page, click on "Register as Taxpayer." You're to select "Corporate" as "Taxpayer Type", You'll need your CAC Registration number to start this registration. You'll also be required to create a password.

Your Tax ID will be in this format: "C-" followed by a combination of 7 numbers, that is, C-*******.

Online business registration platforms

Several online platforms offer business registration services, with user-friendly interfaces and guidance. Here's how it works:

Choose a Platform: A popular option is Norebase.

On Norebase (as an example)

  • On the home page, type your desired business name in the search field to confirm its availability.
  • Click on "Register your company" on the homepage and follow the prompts.
  • Provide all required documents as mentioned earlier. Fill out an online form with your business details and upload the required documents.
  • Pay the required fees (₦17,500 including getting a TIN) and wait between three to five days to receive notification of the availability of the Certificate of Incorporation.

Since these platforms are designed to flag any error in the registration process before submitting the application, you can also request expert help via the website.

Fintech apps with incorporation APIs

Some fintechs and traditional banking apps like Moniepoint, Kuda, and Sterling Bank have integrated business registration features. Typically, here's how it works:

If you use a fintech PoS terminal, that means you're using their business banking app. Within the app (if it has an incorporation API like the one provided by Norebase), you will find a dedicated section for business registration.

  • Click on the feature and follow as it guides you through the process.
  • Pay the registration fee directly through the app (typically ₦20,000).
  • Upon successful registration, you'll be notified once the Certificate of Incorporation is ready.

Note: While fintech app integration is a promising trend, its availability might vary depending on the platform. Check with your specific PoS provider to see if they offer this functionality.

Hands-off approach

While convenient, these options might be more expensive than registering directly through the CAC website.

Engage an accredited CAC registration agent/lawyer

For those who prefer professional assistance, consider hiring a CAC-accredited registration agent or lawyer. This option saves you time and ensures a smooth registration process for a fee, typically ranging between ₦20,000 to ₦25,000.

These professionals have experience navigating the CAC registration process efficiently. They can guide you in choosing the right business structure (sole proprietorship, partnership, etc.) for your PoS business,  provide you with information on the required documents, and help avoid any errors in the registration process.

Business incorporation outfits

Organisations like Entrepreneurs.ng offer business incorporation services, including PoS business registration. Visit their website, request a business registration service, and make a payment (₦20,000). They will take care of the entire registration process, from name search to document submission.

Bonus

Walk into a CAC office

NOTE: Available information suggests that this is only an option for Abuja residents.

Following the announcement of the mandated registration exercise, the Commission opened a registration centre at the FCT Zone 5 Office in Abuja on Wednesday, May 8, 2024, to further ease the process. It is not clear whether similar centres will be replicated in other states.


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