How To Register Your POS Business With The CAC

On July 7, 2024, the Corporate Affairs Commission (CAC) mandated that all Point of Sale (POS) operators register their businesses as part of a comprehensive strategy to address fraud issues within the agency banking sector, particularly concerning POS operators. But before this, the Nigeria Inter-Bank Settlement System (NIBSS) had reported a significant increase in losses from POS fraud, which rose from ₦2.6 billion in 2022 to ₦4.4 billion in 2023.

By registering with the CAC, POS operators can obtain legal recognition, become more credible with customers and partners, and gain access to essential banking services. This registration process not only formalises their operations but also allows them to be compliant with regulatory standards established by the Central Bank of Nigeria (CBN).

Why should you register your POS business with the CAC?

Registering your business with CAC is important for several reasons, especially with the recent regulatory mandates. 

Legal recognition: As a POS operator, registering with the CAC gives your business an official recognition from the government and means legality for your operations. 

Access to financial services: Once your POS business is registered, it’s easier for you to open a corporate bank account, or have access to loans and credit facilities.

More credibility: Being registered with the CAC increases your business’s credibility with customers and partners, potentially leading to repeat business and new opportunities.

Compliance with regulators: Registering your POS business with CAC helps you avoid legal penalties and comply with government regulations.

Protection against fraud: With the rise in fraud cases, registering your POS business with CAC increases your protection against fraudulent activities associated with unregulated POS operations. 

How to register your POS business with the CAC:

The registration process is pretty straightforward and can be completed within minutes if you have the required documents available.

1. Decide on your business structure. 

The choice depends on your business scale and future plans. If you operate a sole proprietorship or have a smaller POS business, you can choose to register as a Business Name. However, if your business is larger and requires more complex structures along with liability protection, registering as a Limited Liability Company (LLC) would be the more suitable option.

2. Gather required documents. 

Before starting the registration process, you’ll need to have these following documents ready:

• Two proposed names for your business.
• A valid means of identification- national ID, voter’s Card, international passport, or driver’s licence.
• A passport photograph.
• Proof of address, either a utility bill or tenancy agreement.
• Contact details including phone number and email address.

3. Create an account on the CAC portal.

To start the registration process, visit the CAC website. Then, click Register in the top right corner to create an account with your phone number or National Identification Number (NIN).

4. Conduct a name search. 

Click Public Search and type your desired business name in the search box to confirm if it is available or allowed. Complete the form and make a ₦500 payment (excluding other charges) to receive your availability code to reserve the name you have chosen. 

5. Complete your registration. 

After you have reserved your name, fill out the registration form with details about your business.

You’ll also need to upload required documents including identification and proof of address. Then, pay the ₦10,000 registration fee with available payment methods on the portal and submit your application. 

6. Wait for confirmation.

You’ll have to wait within three to five days, once you have submitted for CAC to review and notify you about the status of your application. If approved, you’ll receive your Certificate of Registration from your CAC account in your email. 

But if you prefer not to do the registration yourself, you can get a CAC- accredited agent to simplify the registration process. Also, using an agent means you will have to pay between ₦20,000 to ₦25,000, although it can save you time and help you be more compliant.

Registering your POS business with the CAC is not just a regulatory requirement but a strategic move that improves your operation’s legitimacy and builds customer trust. As fraud continues to pose challenges within this sector, registering your POS business with CAC serves as protection for you and your customers. This directive is not only a response to the concerning rise in POS fraud, but also a proactive measure for you to operate your business with confidence, knowing you’re compliant with legal requirements. By embracing this registration process, you’ll also demonstrate your commitment to being transparent, conduct financial transactions with more professionalism, avoid legal repercussions and secure your place within a more organised financial environment.