Introduction
The lawmakers and regulators in Nigeria are making efforts to attract more and more investors. Recent developments in the corporate laws and introduction of new forms by the Corporate Affairs Commission (CAC) is a proof of that. This article shall highlight some important developments and the introduction of new forms.
New Developments
Introduction of new form CAC 1.1 for incorporation of new companies is a key development as it will replace the existing form CAC 2, 2.1, 3, 4 and 7 and facilitate ease of doing business in the country by filling up a single form. It is important to note here that this new form consolidates the information required in all the forms mentioned above except that it is not required to disclose the names of the shareholders which was earlier required in CAC 2. The fraternity is expecting, that this information should be required to be provided in the new company’s memorandum and articles of association.
The new forms along with the memorandum and articles of association, then needs to be submitted online on the website of CAC. This will waive off the new companies from the requirement of filing return of allotment within one month.
Further, the CAC has created a new user interface to facilitate the investor and uploading the scanned incorporation documents online. It shall facilitate and speed up the registration process as the authorities shall print the registration certificate based on documents uploaded on the interface. To ensure the integrity of the data the login details shall be provided to users. Accordingly, only authorized users can access and modify the data.
In another welcome move, CAC is in talks with Federal Inland Revenue Services (FIRS) for collaborating, for integrating the e-stamping module into the CAC company registration portal (CRP). This shall further reduce the cost and time for registration of new companies.
Conclusion
The recent efforts should strengthen the country’s ranking in the ease of doing business and attract prospective investors to register their companies with minimized efforts and time.
