In this blog post, we will walk you through all it takes to register your POS business with Corporate Affairs Commission (CAC).
More so, as CAC accredited agents, we can assist you register your POS business with CAC within 7 days.
The challenge
The rise of POS services in Nigeria has significantly transformed financial transactions, especially in less urbanized areas. This transformation has made financial services more accessible. On the other hand, it has led to a surge in unregulated financial activities.
Federal Government Directive
To address these challenges, the federal government of Nigeria, through the Corporate Affairs Commission (CAC) now requires all POS business operators to formalize their operations by registering their businesses with CAC before 7th July 2024. This initiative aims to curb illegal activities and enhance the legitimacy of POS services across the country.
Requirements and Costs to Register a POS Business with the CAC
Registering a POS business as a “Business Name” with the CAC involves several important steps and requirements:
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Requirements
- Proposed Business Names: Applicants must provide two proposed business names for their business.
- Contact Information: A valid email address and phone number is mandatory.
- Personal Biodata: This includes the applicant’s full name, date of birth, and gender.
- Identification Documents: Applicants need to submit one passport photograph, a valid ID card (NIN ID, Voters card, Drivers License, Intl Passport) and a signature, all scanned or photographed clearly.
- Addresses: Both home and business addresses are required.
Duration
The registration process is designed to be quick, with a business name certificate issued within Seven (7) days. This rapid turnaround is crucial for businesses eager to comply with new regulations.
Costs to Register a POS Business with the CAC
To register a POS business in Nigeria typically ranges from ₦21,000 to ₦30,000, depending on the CAC agent handling your registration.
With us (Zfrica) it cost ₦23,000 with no extra charge. This cost covers both the name reservation cost, registration cost.
Step-by-Step Registration Process
- CAC Agent Selection: Choose a CAC-accredited agent to facilitate the registration process. Agents are well-versed in the procedures and can help you avoid serious mistakes during the registration process. We are one of the CAC accredited agents, you can engage us now by clicking the chat button below
- Document Preparation: Make ready all the necessary documents and personal information as stated above.
- Document Submission: Submit all the required documents to your agent. You can submit your documents online, through our website, or through Whatsapp chat. To submit documents like ID cards and passport online, snap it with your phone or scan it then send. You can as well submit the documents offline by visiting our office address.
- Payment: Make the necessary payments. At Zfrica, we allow part payments.
- Name Reservation & Registration: With these submitted documents accompanying your 2 proposed names, we will apply for your name reservation. Once the name reservation is approved, we can proceed with the business name registration properly
- Certificate Issuance: Once registration is successful, the business name certificate will be issued electronically, to your email. This allows the new registrant to download and print the certificate for business use. We will also send you a copy of it to your Whatsapp number.
Note:
Since January 2021, CAC now sends all CAC documents electronically to applicant’s email, from where it can be downloaded. Hence, there is no need to visit CAC office for your business to be registered.
It also implies that we can register your POS business with ease no matter your location in Nigeria.
What you will get after you Register your POS business with CAC
After getting your POS business registered with the Corporate Affairs Commission CAC, you will get or have access to the following
- CAC BN registration number
- CAC Business certificate
- CAC Status report
- Access to apply for the ongoing 2024 FG SME LOAN (500K – 2M)
- Access to open a business / corporate account with any bank in Nigeria
Why Us
- We have successfully registered over 600 business names since 2019 including.
—Damic Farms
—Shop Everything Vintage
—Jovisco electrical fittings light Ventures and many more - Timely Delivery.
- No hidden charges
- Zfrica is a reputable firm in Nigeria.
- We update you at every stage of the registration process
- We offer you additional assistance through our Tiktok business guide videos
Conclusion
Registering your POS business with the CAC is not only a legal requirement but also a step towards enhancing your business’s credibility in Nigeria.
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Hussaini Magaji, the Registrar-General of the CAC warned “After the deadline, we would go after defaulters, If you have been identified as a criminal, security agents will go after you, we will go after them because some are being chased by the security agencies already.”
With the ongoing evolution of digital finance in Nigeria, maintaining regulatory compliance is crucial for continued growth and stability in the sector.
Frequently Asked Questions
1. What is the purpose of registering a POS business with the CAC? Registering a POS business helps ensure compliance with legal standards, enhances business credibility, and curbs illegal financial activities. Also, any POS business who doesn’t register after 7TH July 2024 would be tagged as illegal and would face prosecution.
2. What are the key documents needed for the registration? The essential documents include two proposed business names, a valid email address, personal bio data, a passport photograph, a valid ID card, a signature, and home and business addresses.
3. How long does it take to obtain a business name certificate? The process typically takes about 5-7days after all necessary documents are submitted.
What is the cost range to register a POS business with the CAC? The registration costs generally range from ₦21,000 to ₦30,000, depending on the CAC agent. With us, it cost ₦23,000
4. Can I register my POS business without an agent? While it is possible, using a CAC-accredited agent is advisable to avoid common pitfalls and costly mistakes.
5. What additional support is available after registering a POS business? Post-registration, operators can access services like assistance with opening bank accounts and ongoing business guidance on platforms such as social media.
6. Why is it important to formalize a POS business operation? Formalizing a POS business ensures legal compliance, reduces the risk of penalties, and helps establish trust with customers and financial institutions.
For further inquiries and assistance, always feel free to chat with us anytime
Is it the individual POS operators that have to register or the POS companies like Monie Point, OPAY etc
Yes , every individual POS agent or operator will have to register the business for which he/she obtained the POS
What will happen if I don’t register by POS BUSINESS with CAC before July 7th
While we cant say for sure what exactly would happen, but FG has said, the police would go after the defaulters and CBN would have to restrict such accounts.