How to Register your POS Business with CAC Nigeria Online

This guide explains how to register your POS business with CAC Nigeria online.

In recent years, it’s clear that almost every street in Nigeria has a POS operator. You can even count about 10 POS shops in a street.

These POS operators have made life easier for regular people and businesses by making payments for goods and services very easy.

To follow the Central Bank of Nigeria (CBN) rules, the Corporate Affairs Commission (CAC) now requires all POS operators and fintech merchants to register their businesses.

This move is meant to help reduce the increasing cases of POS fraud.

Registration is due September 4, 2024. If you miss it, you could face police action.

Here’s a simple guide explaining how to register your POS business with CAC in Nigeria.

Why is CAC Mandating POS Operators for Registration
Who is the Corporate Affairs Commission (CAC)
Why Register Your POS Business with the CAC?
Ways to Register Your POS Business in Nigeria Online
How Long Does it Take to Register Your POS Business with CAC?
FAQs
Conclusion
References
Recommendations

Why is CAC Mandating POS Operators for Registration

The CAC wants POS agents to register as part of their effort to fight fraud through POS systems.

According to the 2023 Annual Fraud Landscape report by the Nigeria Inter-Bank Settlement System (NIBSS), POS channels were a top target for fraudsters in 2023.

The report shows that losses from POS fraud increased significantly, jumping from N2.6 billion in 2022 to N4.4 billion in 2023.

Who is the Corporate Affairs Commission (CAC)

The Corporate Affairs Commission (CAC) is a Nigerian government agency responsible for overseeing and managing Nigerian companies.

Established in 1990 under the Companies and Allied Matters Act, the CAC is led by a chairman and the Registrar General/CEO.

The commission was created by a law passed by the National Assembly in 1991 and reports directly to the President through the Minister of State for Planning.

The CAC has several key responsibilities, including:

Regulating the financial operations of companies.
Ensuring companies comply with the Companies Act 2014.
Overseeing the duties and responsibilities of company directors.
Managing market access for foreign investors.
Monitoring securities markets for insider trading.
Enforcing corporate governance codes.
Maintaining public records of companies in Nigeria.

Why Register Your POS Business with the CAC?

Below are why you need to register your POS business with the CAC.

Legal Recognition: Registering your business makes it officially recognized by the government.
Access to Services: You can open a corporate bank account and access other financial services.
Trust and Credibility: Registration boosts your business’s credibility with customers and partners.
Compliance: It helps you avoid legal penalties and follow government regulations.

Ways to Register Your POS Business in Nigeria Online

Here are some easy ways to register your POS business, whether online, using a phone, computer, or offline.

Online Methods:

Use the CAC Website: Go directly to the CAC website to complete your registration.
Online Business Registration Platforms: Some platforms help you register your business online.
Fintech Apps with CAC APIs: Some fintech apps offer built-in services to help you register with the CAC.

Alternative Methods:

Hire a CAC Agent or Lawyer: You can also get a CAC agent or lawyer to handle the registration.
Visit a CAC Office: If you prefer in-person help, you can register at a CAC office.

Method 1: Using the CAC Website

This option lets you handle the registration directly through the CAC registration portal. Here’s how to do it:

Step 1: Go to the CAC registration portal at www.cac.gov.ng or https://pre.cac.gov.ng.

Step 2: Create an account by clicking the “Register” option at the top right corner of the homepage. You can sign up using your phone number or NIN. (Just a heads-up: the NIMC portal is currently under maintenance, so keep an eye on CAC updates.)

Step 3: Return to the homepage.

Step 4: Follow these on-screen steps:
Public Search: Use the search box to find your desired business name and check whether it’s available or allowed.
Reserve Your Name: Fill out a form to secure your business name. Select “Other Service Activities” for a POS business and then choose “Other Personal Service Activities” for the Specific Nature of the Business. Complete the form and pay ₦500 (plus additional charges) to get your Availability Code.
Pre-Incorporation: Use the availability code to continue your registration (you’ll find this on your dashboard once your business name is reserved). You’ll need to provide details like your business name, address, and what your business does. You’ll also need to upload a valid ID (Voter’s card, passport, National ID card, or driver’s license), proof of address (like a utility bill or tenancy agreement), and optionally, a business plan if it’s a sole proprietorship.

Step 5: Pay the registration fee ₦10,000 using any available payment options.

Step 6: Submit your completed form and documents. The CAC will review your information and let you know the outcome.

Step 7: If everything checks out, your Certificate of Registration will be sent to your email. This usually takes three to five days.

Additional Requirement: Tax Identification Number (TIN)

Businesses must also have a Tax Identification Number (TIN), a unique number the Federal Inland Revenue Service (FIRS) gives. Here’s how you can get one for free:

For businesses outside Lagos: Go to the Joint Tax Board website, click “Register for TIN (Non-Individual),” and follow the steps.
For businesses in Lagos: Apply for your TTIN through the LIRS website. On the homepage, click “Register as Taxpayer,” choose “Corporate” as your “Taxpayer Type,” and enter your CAC Registration number to get started. You’ll also need to create a password.
Your Tax ID will look like “C—” followed by a series of seven numbers (e.g., C—*******).

Method 2: Online Business Registration Platforms

Online platforms can be a great option if you’re looking for a more user-friendly way to register your business. Here’s how to go about it:

Step 1: Choose a Platform

Popular options in Nigeria include Norebase and Kippa Start. With Norebase, you can even request expert help directly through their website if you need it.

Step 2: On the homepage, type your desired business name into the search bar to check if it’s available.

Step 3: Click the “Register your company” button on the homepage and follow the easy prompts to complete the registration process.

Step 4: Submit all necessary documents, including your business details, online.

Step 5: Pay the required fees, usually around ₦17,500, which includes getting a TIN. Norebase typically completes the process within 3-5 business days and will notify you when your Certificate of Incorporation is ready.

Method 3: Fintech Apps with CAC APIs

Some fintech and traditional banking apps, like Moniepoint, Kuda, and Sterling Bank, offer built-in business registration features. Here’s how it generally works:

If you’re using a fintech POS terminal, you likely have access to their business banking app. Look for a section dedicated to business registration within the app, especially if it’s integrated with an API like Norebase.

Using Moniepoint Business Banking App as an Example:

If you have a Moniepoint Business account, you can register your business directly through the app. Here’s how:

Find the banner or section for business registration in the app.
Review the details and costs.
Choose the type of registration and make sure your NIN is linked.
Enter your business details, preferred names, ID proof, and address.
Review everything, confirm, and make the payment.
Track your registration status in the app, and once approved, download your certificate. You’ll see the details and next steps on your dashboard if it’s rejected.

Note: Fintech app integration is an exciting development, but availability may vary depending on the platform. Always check with your POS provider to see if they offer business registration features.

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

Method 4: Hiring a CAC-Accredited Registration Agent or Lawyer

If you want professional help with your business registration, consider hiring a CAC-accredited agent or lawyer. This option can save you time and ensure everything goes smoothly, usually for a fee between ₦20,000 and ₦25,000.

These professionals know the CAC registration process inside and out. They can help you choose the right business structure (like sole proprietorship or partnership) for your POS business, guide the required documents, and help you avoid mistakes during registration.

Method 5: Vista CAC office

This option is currently only available for those in Abuja. The Corporate Affairs Commission (CAC) has set up a registration center at the FCT Zone 5 Office in Abuja to help POS operators register their businesses in bulk.

This move follows the recent mandate requiring POS operators to register by July before POStponed until September 4, 2024.

The center was launched by the Registrar-General/CEO of CAC, Hussaini Ishaq Magaji (SAN).

It’s still unclear whether similar centers will be opened in other states like Lagos, where many POS operators exist.

How Long Does it Take to Register Your POS Business with CAC?

Confirming the reservation of your business name takes about 4 hours.

Once you submit all the necessary documents or address any queries, the registration process with CAC usually takes around 24 working hours.

FAQs

Can I Register My Business with CAC Online by Myself?

You can register your business name by visiting the CAC registration portal at www.cac.gov.ng.

Why Do I Need to Register My POS Business with the CAC?

Registering your POS business with the CAC gives it legal recognition, allows you to open a corporate bank account, and boosts your business’s credibility. It also ensures you follow government regulations, helping you avoid legal penalties and potential issues.

What Documents Are Required for My POS Business Registration?

You’ll need to provide a passport photo of the owner or each partner, a valid ID (national ID, voter’s card, international passport, or driver’s license) for the owner or each partner, and proof of payment for the registration fee.

How Will I Know If My Registration Is Successful?

Once your application is approved, you’ll get an email notification. You can then log in to your CAC account to download your Business Name Certificate and other important documents.

What Are the Benefits of Registering My POS Business?

The benefits include legal recognition, access to banking and financial services, increased trust from customers and partners, and compliance with legal requirements, which helps you avoid penalties and disruptions.

Conclusion

Knowing how to register your POS business with CAC, online or offline, is crucial for staying compliant with Nigerian regulations and protecting your business from legal risks. Following the steps outlined above will help you smoothly register your business and get the certification you need.

You don’t have to wait until the deadline. You can start your registration today to ensure your business is legally recognized and ready to enjoy all its benefits.

If you find this article helpful, please share your thoughts in the comment section and follow us on our social media platforms: X (Silicon Africa (@SiliconAfriTech)), Instagram (SiliconAfricaTech), and Facebook (Silicon Africa).

References

Benjamindada.com – Register your POS business with CAC Nigeria online
Myschoolgist.com – How to Register your POS Business with CAC in Nigeria: Step-by-Step Guide
Adlatworld.com – How To Register Your POS Business With CAC