20 February 2013

Nigeria: CAC Registers 20,800 Companies in Four Months

The Corporate Affairs Commission (CAC) Tuesday disclosed that it received a total of 20,800 applications for business registration in the last four months.

The commission also revealed that the total number of new companies registered within 24 hours since the commencement of its 24-hour start-to-finish business registration currently stood at 10,723.

The CAC disclosed this in its latest report titled "Statistics for New Registration Services for Abuja and Lagos Offices," released to the Ministry of Trade and Investment in Abuja.

A breakdown of 20,800 applications showed that the CAC Abuja Head Office received 19,919 applications, while Oregun and Yaba Offices received 653 and 228 applications respectively.

According to the report, the total number of applications processed within 24 hours in CAC's Abuja Head Office was 10,292; while the Oregun and Yaba, Lagos offices processed 398 and 33 applications respectively.

The report also showed that the total number of applications processed outside 24 hours but within 72 hours were 8,759. Of this number, the Abuja office accounted for 8,416, Yaba (150) and Oregun (193).

The report, however, stated that the total number of applications that were pending after three days stood at 1,318 with the Abuja office accounting for 1,211 applications. The Oregun and Yaba offices had 62 and 45 applications respectively.

The Registrar-General, Corporate Affairs Commission, Mr. Bello Mahmud, said it was important, in line with the directive of the Minister of Trade and Investment, Mr. Olusegun Aganga, to let the public know that the 24-hour registration service was working and also state common errors that had made some applications fall out of the 24-hour deadline.

Explaining the reasons some applications were not processed within the CAC's 24-hour start-to-finish timeline in the period under review, Mahmud said many customers failed to comply with laid down requirements for business registration, stressing that the corporation could only deliver after filing, when all requirements had been fulfilled.

He added: "Customers have a responsibility to ensure that all necessary requirements are met before filing their applications. The CAC only processes applications that have complied in all respect with laid down requirements. The applications processed outside 24 hours but within 72 hours were the ones that had been queried for non-compliance with laid down requirements.

"Such applications pending after 72 hours were applications queried for non-compliance and in which the applicant did not comply with the query within 72 hours of filing. On the 2nd of January 2013, the Companies Regulations 2012 came into effect, which makes it mandatory for directors and subscribers to submit the recognised form of identification as part of the requirements for registration."

He however said that majority of applicants had not been complying with the requirements, despite the notice to that effect.

"That was responsible for the large number of queried applications in January 2012," he noted.

Mahmud also stressed that the CAC would continue to improve its processes and procedures to enhance customers' satisfaction in line with its objective of becoming a world class companies registry.

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