If you run a POS business in Nigeria then you’ve likely heard the news: the Central Bank of Nigeria (CBN) has mandated registration with the Corporate Affairs Commission (CAC) by July 7, 2024. This move aims to tackle fraud and enhance the overall legitimacy of the POS industry.
This guide will not only walk you through the registration process on the CAC website. We’ll explore all the methods available to ensure your POS business operates legally and protects both you and your customers.
Let’s get started!
Ways to Register Your POS Business in Nigeria Online
Here are working methods to complete the registration either online using a mobile phone or computer, or offline.
Online Methods:
- Using the CAC Website
- Online business registration platforms
- Fintech Apps with CAC APIs
Alternative methods:
- Engage a CAC agent or Lawyer
- Visit a CAC office approach
Method 1: Using the CAC website
This is a self-service option, allowing you to register directly with the CAC. 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.
Step 4: Follow the steps on your screen:
i. Public Search: Type your desired business name in the search box to see if it’s available or allowed.
ii. Reserve your Name: Fill out a form to secure your desired business name.
Note: For your PoS business classification, select “Other Service Activities.” Since PoS is not listed, choose “Other Personal Service Activities” for the Specific Nature of Business.
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 such as your business name, address, and proposed activities. Submit digital copies of a valid ID (Voter’s card, passport, National ID card, driver’s license), proof of address (utility bill, tenancy agreement), and optionally, a business plan for sole proprietorships in this step.
Step 5: Pay the registration fee (₦10,000) using any of the provided payment options.
Step 6: Submit your completed form and documents. 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.
- Benefits: Cost-effective.
- Drawbacks: Requires some technical know-how and navigating forms.
Additional Requirement: Tax Identification Number (TIN)
Businesses are also 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, apply for your TIN from the LIRS website. On the home page, click on “Register as Taxpayer,” select “Corporate” as “Taxpayer Type,” and enter your CAC Registration number to start. You’ll also need to create a password.
- Your Tax ID will be formatted as “C-” followed by a combination of 7 numbers (e.g., C-*******).
Method 2: Online business registration platforms
For a more user-friendly approach, online business registration platforms offer a valuable solution. Here’s how it works:
- Step 1: Choose a Platform: Popular options in Nigeria include Norebase and Kippa Start.
Using Norebase for example:
Norebase allows you to request expert help directly through their website if needed.
- Step 2: On the homepage, simply enter your desired business name in the search bar to confirm its availability.
- Step 3: Click the prominent “Register your company” button on the homepage. Follow the clear prompts that guide you through the process.
- Step 4: Provide all the necessary documents mentioned earlier. Additionally, you’ll fill out an online form with your business details.
- Step 5: Pay the required fees (around ₦17,500, including obtaining a TIN). Norebase typically processes applications within 3-5 business days, notifying you when your Certificate of Incorporation is available.
Method 3: Fintech apps with CAC APIs
Some fintechs and traditional banking apps, such as Moniepoint, Kuda, and Sterling Bank, offer integrated business registration features. Here’s how it typically works:
See Also: KuCoin Introduces Vat on Transaction Fees For Nigerian Users
If you use a fintech PoS terminal, you’re likely using their business banking app. Within the app (if it includes an incorporation API like the one provided by Norebase), you’ll find a dedicated section for business registration.
Using Moniepoint Business Banking App for example
As a Moniepoint Business account holder, you can do the registration right on your app. Follow the steps below to begin;
This option allows registration directly within the app:
- Access the dedicated banner, and review details and costs.
- Choose the registration type, and ensure NIN is linked.
- Provide business details, preferred names, ID proof, and address.
- Review, confirm, and make payment.
- Track status and download certificate (if approved). If rejected, view details and next steps on your dashboard. Or Contact
Note: While fintech app integration is a promising trend, its availability might vary depending on the platform. Always verify with your PoS provider to confirm their business registration functionality.
Other Approaches to Registering Your POS Business Online
While these alternative methods are convenient, they may be more expensive than registering directly through the CAC website.
Method 4: Engaging an Accredited CAC Registration Agent/Lawyer
For 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 information on required documents, and help avoid any registration errors.
Method 5: Vista CAC office
This option is currently only available for Abuja residents.
The Corporate Affairs Commission (CAC) has opened a registration centre at the FCT Zone 5 Office in Abuja to facilitate bulk registration of PoS operators. This initiative follows a recent mandate requiring PoS operators to register their businesses by July 7, 2024.
The centre was unveiled by the Registrar-General/CEO of CAC, Hussaini Ishaq Magaji (SAN).
It remains unclear if similar centres will be opened in other states, such as Lagos, despite the high number of operators there.
Choose the method that best suits your comfort level, budget, and time constraints. By July 7, 2024, ensure your POS business is registered to comply with regulations and operate smoothly.
Source: BenjaminDada
