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Six Steps To Keep Business Legally Active – CAC

Nigerian business owners are increasingly at risk as the Corporate Affairs Commission intensifies efforts to delist inactive companies from its official register.
This action, known as ‘striking off,’ effectively removes a company’s legal status and renders it non-existent in the eyes of the law.
Many entrepreneurs remain unaware of the consequences until it’s too late—often discovering their company has been struck off during critical moments like applying for loans, seeking investment, or bidding for contracts.
To help businesses navigate the process and avoid being delisted, here are the six critical steps for correct company registration and post-incorporation compliance, based on the provisions of CAMA:
READ ALSO:FULL LIST: CAC Removes 247 Companies From Database, Urges Public To Disregard Them
1. Choose a Unique Business Name:
Before anything else, select two distinct company names and verify their availability on the CAC online portal. To be approved, names must not be identical to existing companies, misleading, or prohibited under Section 30 of CAMA 2020. Once approved, the name can be reserved for 60 days for a fee of ₦500.
2. Prepare Key Governing Documents:
Businesses must draft a Memorandum of Association (outlining business objectives and share capital) and Articles of Association (detailing internal governance rules). These documents, which can be prepared using templates from the CAC portal, must comply with Sections 27 and 28 of CAMA 2020 and be signed by the company’s promoters.
3. Declare Share Capital:
The company’s authorized share capital must be specified, with a minimum of ₦100,000 for private companies. This is a statutory requirement under Section 27(2) of CAMA 2020, with higher share capital leading to increased filing fees and stamp duty.
4. Appoint Directors and Shareholders:
Provide the details of at least two directors (or one for small companies) and at least one shareholder. Directors must be at least 18 years old and of sound mind, as stipulated in Sections 20 and 271 of CAMA 2020. Required information includes names, addresses, occupations, and valid identification.
READ ALSO:Tinubu Appoints New NCC Chairman, Fresh Board Members
5. Submit Registration Documents:
All required documents, including CAC Form CAC1.1, the Memorandum and Articles of Association, and details of directors and shareholders, must be submitted via the CAC online portal. This is followed by the payment of statutory filing fees and stamp duty, which vary based on the company’s share capital.
6. Comply Post-Registration:
After receiving the Certificate of Incorporation, a company’s legal existence is confirmed. However, the work is not done. Businesses must register for a Tax Identification Number (TIN) with the Federal Inland Revenue Service (FIRS) and obtain any necessary permits. Most critically, they must file annual returns within 42 days of their company’s anniversary to avoid being delisted. This includes submitting yearly forms, declaring Persons with Significant Control (PSC), and paying all fees on schedule.
News
Edo: Pandemonium As NDLEA Operatives Chase Escaping Driver With Shooting
There was pandemonium at Oka Market, Upper Sakponba Road, Benin City, Friday, as operatives of the State Command of Nigerian Drug Law Enforcement Agency (NDLEA) shot sporadically in chase of an escaping driver.
In the course of the commotion, traders and residents took to their heels, probably to avoid being hit by stray bullets, while others were confused, not sure of what caused the sporadic gunshots.
The sporadic gunshots which lasted more than five minutes at the gate of the NDLEA Head Office, by Oka Market, followed a hot chase of an articulated vehicle driver who was said to have brushed their (NDLEA) vehicle.
READ ALSO:NDLEA Arrests Two Drug Kingpins, Seizes Cocaine, Heroin, Meth In Lagos
The driver, who reportedly brushed the NDLEA vehicle refused to stop for negation, which prompted officers at the scene to alert their colleagues who waited at the alert.
According to eyewitnesses, as the escaping articulated driver approached the NDLEA office, officers who were said to have been alerted by their colleagues pursuing the trailer began to shoot.
Seven of the tyres of the trailer were deflated by bullets of the NDLEA operatives yet the driver refused to stop.
The officers continued to shoot while pursuing him, until he was caught.
READ ALSO:NDLEA Destroys Over 18,000 KG Of Cannabis In Edo Forest
A source said that the driver brushed their vehicle on the way, and that every effort by the officers to stop him so they could settle the matter proved abortive; hence the gunshots and deflation of the tires.
“It was a simple thing; they jammed our men, but the officers tried to stop him so that they could settle, but the driver refused to stop. That is why the men have been shooting to stop him. Even after bursting about seven tires, he was still running, but we caught him and they are bringing him back to our office,” he concluded.
Calls and messages sent to the commander, Edo State NDLEA Command, Mr. Mitchell Ofoyeju, were not responded to as at when filing this.
News
JUST IN: Court Bars Police From Enforcing Tinted Glass Regulation
The Federal High Court sitting in Warri has issued an order directing the Nigeria Police Force and the Inspector-General of Police to maintain the status quo in the ongoing case concerning the controversial tinted glass permit.
The case, Suit No. FHC/WR/CS/103/2025: John Aikpokpo-Martins v. Inspector-General of Police & Nigeria Police Force, came up for hearing today.
READ ALSO:Police Clear Pastor Paul Adefarasin Over ‘Gun-like’ Object In Viral Video
Delivering the interim order, the Court directed the police authorities to respect judicial processes pending further proceedings in the matter.
Confirming the development, Kunle Edun, SAN, who led the legal team, noted that the directive is a major step in ensuring that the rule of law is upheld while the substantive issues in the case are being determined.
Details of the ruling and the next adjourned date are expected shortly.
Further updates coming soon…
News
Court Dismisses Suit Seeking Refund Of Rivers’ Monies Expended By Ibas
The Federal High Court in Abuja on Thursday dismissed a suit seeking a refund of all Rivers’ monies in the Consolidated Revenue Fund released, appropriated and expended by the Sole Administrator, retired Vice Admiral Ibok-Ete Ibas.
Justice James Omotosho, in a ruling, held that the Federal High Court (FHC) has no jurisdiction to determine the subject matter, having stemmed from the presidential proclamation of the state of emergency.
The judge upheld the objection raised by lawyers to the defendants, including Kehinde Ogunwumiju, SAN, who represented Ibas in the case.
Justice Omotosho held that it is only the Supreme Court that had the exclusive and original jurisdiction to determine the validity of the declaration of an emergency rule by the president.
“I must not fail to say here that counsel to the claimant ought to make proper research regarding his case before filing same.
“He must make diligent research as to which court has jurisdiction and the necessary parties in the suit before filing his action.
“Counsel has the duty to be professional in making such research rather than spending time spreading misinformation or painting the wrong picture on social media and other broadcast media.
“This court is saddled with a lot of cases, including commercial, civil and criminal matters which makes its time very precious.
“Filing suits which are void abinitio is inimical to the course of justice and the court can suo motu nullify such void suit in order to save its time.
READ ALSO:BREAKING: EFCC Chairman, Former Rivers Sole administrator Ibas In Aso Rock
“I therefore hold that a void process cannot activate the jurisdiction of this court.
“In final analysis, the subject matter of this suit is outside the jurisdiction of this court and this court will decline jurisdiction over same,” he said
The judge also declined to transfer the case to Port Harcourt judicial division as part of the reliefs sought by the plaintiff.
He held that the application for transfer of the suit back to Rivers was ungrantable.
He said that a look at the provision of the law revealed that the court can only transfer a matter to another judicial division, either a high court of a state or the High Court of the Federal Capital Territory, Abuja.
“This court having held that only the Supreme Court can hear and determine matters relating to Proclamation of State of Emergency, it would be totally worthless to then transfer the matter to another judicial division which equally lacks subject matter jurisdiction.
“Since this court has no power to transfer this matter to the Supreme Court, the proper course of action is to refrain from making any other transfer and to strike out the entire processes for lack of jurisdiction.
“Consequently, issue two is resolved against the claimant,” he said.
The judge equally resolved issue three which challenged the discretionary power of chief judge of FHC to have transferred the matter to Abuja for adjudication.
READ ALSO:Court Stops Ibas From Inaugurating Rivers Service Commission Members
“Consequently, this court hereby declines jurisdiction over this suit and the originating process filed is hereby declared void as same ought not to have been filed before this court,” he ruled.
The News Agency of Nigeria (NAN) reports that the Incorporated Trustees of Rivsbridge Peace Initiative had, in the suit marked: FHC/PH/CS/43/2025, sued President Bola Tinubu as 1st defendant.
The group also named the Federal Republic of Nigeria, the Attorney-General of the Federation, the Accountant-General of the Federation (AG-F), the Central Bank of Nigeria (CBN) and Ibas as 2nd to 6th defendants.
The group had queried Ibas’ appointment.
It also sought an order of mandatory injunction, directing the 1st, 2nd, 3rd, 4th, 5th and 6th defendants to, forthwith, return, refund and or pay back any monies in the Consolidated Revenue Fund belonging to Rivers State released, appropriated and or expended after March 18 when the president declared the state of emergency, among others.
It argued that the action was without compliance with the express provision of Section 120,121,287(1) of the 1999 Constitution (as amended) and subsisting Order(s) of the Supreme Court in Rivers State House of Assembly vs Govt of Rivers State (2025).
Justice Omotosho, in another ruling on the second suit, marked: FHC/PH/CS/46/2025, which challenged the power of Ibas to appoint sole administrators for the state’s 23 local government areas of Rivers, was also dismissed.
NAN reports that the suit, filed by the plaintiffs, had Ibas as sole defendant.
Delivering the ruling, the judge upheld the preliminary objection of lawyer to Ibas, Ogunwumiju, that the plaintiffs lacked the locus standi (legal right) to file the suit.
READ ALSO:Rivers LG Administrator Appointed By Ibas Resigns
He said that the plaintiffs were neither one of the suspended LGA chairmen nor could they have filed the suit against the Federal Government or Ibas on a dispute that purportedly affects the general public in Rivers.
“The applicants are mere individuals who happen to be residents of Rivers State.
“Unless and until the consent of the Sole Administrator is obtained and filed with the originating process, this suit is totally void and has no legs upon which to stand.
“The lack of locus standi on the part of the applicants will lead to a dismissal of this action and referral to a higher court for determination of the suit does not arise as this court has no such power,” he said.
He restated that the court lacked the jurisdiction to entertain the case.
“In final analysis, the suit of the applicants is bound to fail as this court cannot assume jurisdiction over this matter in view of lack of subject matter jurisdiction and lack of locus standi on the part of the applicants.
“Consequently, this action is hereby dismissed for being void,” Justice Omotosho declared.
NAN had earlier reported that the judge dismissed a suit seeking an order declaring President Tinubu’s suspension of Gov. Siminalayi Fubara of Rivers as illegal.
The suit, marked: FHC/PH/CS/51/2025, was filed by Belema Briggs, Princess Wai-Ogosu, I. Acho, Emmanuel Mark and Hadassa Ada, who claimed to have sued for themselves and residents of Rivers State.
They had listed the President of the Federal Republic of Nigeria, the Attorney General of the Federation, Ibas and the Nigerian Navy as defendants.
The plaintiffs had queried the emergency declaration, the suspension of elected officials, including Gov. Fubara, the appointment of a sole administrator and, among others, prayed the court to void the president’s action.
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