In a bid to further encourage micro, small and medium enterprises (“MSMEs”) to formalise their businesses, the Federal Government of Nigeria (the “FGN”) through the Corporate Affairs Commission (“CAC”) has extended the window for the reduction of cost of registration of business names from N10,000 to N5,000 (excluding the cost of name reservation of N500). In a public notice signed by the Management of the CAC dated 31st December 2018 and published on the CAC’s website (http://new.cac.gov.ng/home/public-notice-extension-reduction-cost-business-names-registration-50/) on 2nd January 2019, it was announced that the extension will run for an additional 90 days, from 1st January 2019 to 31st March 2019.
The FGN had initially announced a 90-day special window for reduction of cost of registration of business names which was effective between 1st October 2018 and 31st December 2018 (please see our update in this regard here - http://acas-law.com/resource/blog/Federal_Government_Cuts_Cost_of_Business_Name_Registration_by_50%). According to the CAC, the extension of the window to 31st March 2019 was done in an effort to deepen the benefits of CAC’s reform initiatives and business incentive strategy for MSMEs.
With this extension, the general public can continue to enjoy the incentive of a reduced registration fee which, however, remains applicable only to business name registrations and not to registration of companies or incorporated trustees.
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