Why Content Creators in Nigeria Need to Register Their Business with CAC

If you are a content creator in Nigeria, you might think that you don’t need to register your business with the Corporate Affairs Commission (CAC). After all, you are just using your name or a pseudonym, and you are not selling any physical products or services. You are just sharing your content online and making money from ads, sponsorships, or donations. Continue Reading...

However, you might be surprised to learn that the CAC has a different view. According to the Registrar General, CAC, Hussaini Magaji, content creation is a form of business activity that falls under the scope of the Company and Allied Matters Act 2020 (CAMA 2020). This means that you are required to register your business with the CAC and comply with the tax obligations and other regulations that apply to your industry.

Magaji said: “Ignorance of the law is not an excuse. It is stated in the Company and Allied Matters 2020 that for any business to take place in Nigeria, whether you are doing business with your name or another name, you must surrender your business for registration.

“If you are a content creator on the internet and you have a large followership and you are gaining or making money from it, you must register and that’s the provision of the law.

“And we are all out to enforce the provision of the law with its penalties.”

What are the benefits of registering your business with the CAC?

You might be wondering why you should bother to register your business with the CAC if you are already making money from your content. Well, there are several benefits that come with having a registered business, such as:

Legal protection: Registering your business gives you a legal identity and protects you from personal liability in case of any disputes or lawsuits. It also protects your business name and brand from being used by others without your permission.
Credibility and trust: Having a registered business shows your audience and potential partners that you are serious and professional about your work. It also helps you to build trust and credibility with your customers, sponsors, and advertisers.
Access to funding and opportunities: Registering your business opens up more opportunities for you to access funding, grants, loans, and other support programs from the government and private sector. It also enables you to participate in tenders, contracts, and collaborations with other businesses and organizations.
Tax benefits: Registering your business allows you to enjoy tax benefits and incentives that are available for small and medium enterprises (SMEs) in Nigeria. You can also claim deductions and expenses related to your business activities and reduce your taxable income.

How to register your business with the CAC

If you are convinced that registering your business with the CAC is a good idea, you might be wondering how to go about it. The good news is that the process is not as complicated or expensive as you might think. Here are the steps you need to follow:

Choose a business name: The first step is to choose a unique and catchy name for your business that reflects your content and brand. You can use your own name, a pseudonym, or a creative name that describes your niche or audience. You can check the availability of your preferred name on the CAC website.
Reserve your business name: Once you have chosen your name, you need to reserve it with the CAC. You can do this online or at any of the CAC offices across the country. You will need to pay a fee of N500 for the reservation and provide some basic information about yourself and your business. The reservation is valid for 60 days, within which you need to complete the registration process.
Register your business: After reserving your name, you need to register your business with the CAC. You can choose to register as a business name, a limited liability company, or an incorporated trustee, depending on the nature and size of your business. You will need to fill out the appropriate forms and submit them online or at the CAC office, along with the required documents and fees. The fees vary depending on the type and category of your business, but they are generally affordable and range from N10,000 to N50,000. You can find more details on the CAC website.
Obtain your certificate of registration: Once your registration is approved, you will receive a certificate of registration from the CAC, which confirms your business name and number. You will also receive a tax identification number (TIN) from the Federal Inland Revenue Service (FIRS), which you will need to file your tax returns and access other tax benefits.

Conclusion

As a content creator in Nigeria, you have a lot of potential to grow your audience and income online. However, you also have a responsibility to comply with the law and register your business with the CAC. Doing so will not only help you avoid penalties and fines, but also give you many advantages and opportunities to take your business to the next level. Don’t delay, register your business today and enjoy the benefits of being a legal and legitimate content creator in Nigeria.

Source:

According to the CAC, it is mandatory for content creators to complete registration and fulfill their tax obligations.

The Registrar General, CAC, Hussaini Magaji, said: “Ignorance of the law is not an excuse. It is stated in the Company and Allied Matters 2020 that for any… pic.twitter.com/NBFYQdo10B
— Imran Muhammad (@Imranmuhdz) February 13, 2024