You are ready to register your business with the Corporate Affairs Commission, CAC, and get your business registration certificate. That’s a great choice. The best thing is you can do it yourself, from the comfort of your home. Wait! Which CAC registration business commencement date should I choose?
Should you choose the date you started your business, huh? Or maybe the date you’re registering your business?
It’s fair to feel this way. You may have been running your business for a while without registering it. Let’s say you started your business a few months ago or even a few years ago. You are now wondering if you should select the date you started your business when registering your business with CAC Nigeria.
I was in shoes too. I felt the same way. But, there’s a solution to it. I will tell you all you need to know in this wikifreelancing guide.
After publishing how to reserve your business name and how to register your business with CAC Nigeria, I figured that most people were finding it confusing regarding the exact business commencement date they will fill out during their business registration.
What is the CAC Business Commencement Date?
The business commencement date marks the official start of operations for a business entity. It is the date when the business begins its commercial activities, such as selling products or services to customers.
Should I use the date I started my business or the date I am registering my Business Name with CAC?
While the concept may seem straightforward, it is important to understand the CAC regulatory requirements.
Entrepreneurs often face a dilemma when selecting the business commencement date. On one hand, there’s the desire to choose an earlier date to imply a longer history of operations and credibility.
On the other hand, there’s the practical consideration of selecting the date of official registration to avoid additional fees and scrutiny from regulatory authorities.
Factors to Consider: When determining the business commencement date, entrepreneurs should weigh several factors:
- Legal Compliance: Ensure compliance with regulatory requirements, including tax laws and business registration guidelines.
- Tax Implications: Understand the tax implications of selecting an earlier commencement date, including potential liabilities for past years.
- Credibility: Consider the impact of the commencement date on the business’s perceived credibility and reputation among customers, suppliers, and investors.
- Administrative Ease: Opt for the registration date for simplicity and clarity in legal and financial matters.
What business commencement date should I choose when registering my business name with CAC?
The business commencement date, in the normal sense of it, should be the date you started your business.
However, CAC would want you to select the date you’re registering your business as your business commencement date. This is because that is the date your business is officially and legally (according to CAC) birthed. I was in your shoes too.
You may have the tendency to choose an earlier date to demonstrate that your business started some months or even years ago before your registration. That’s also fine. But there is a caveat.
If you choose an earlier date other than the date of official registration with CAC, CAC may require you to pay a late registration kinda fee, and this may also attract a more meticulous review of your business before approving it.
The summary is it’s best to choose the date of registration (the day you’re registering your business) if you don’t want to pay an extra fee or attract more rigorous checks. It is also possible to select an earlier date if you think it’s key to your business and its registration because you will have the date displayed on your certificate.
Oh! One more thing, if you chose a couple of years ago, you may also be required to pay taxes for those years and late payments. Whichever one you choose, you’ll be fine. If you’re not fine, just let me know.
