The Corporate Affairs Commission (CAC) has urgently directed all Point of Sale (POS) Operators to register their businesses with the Corporate Affairs Commission.
The Corporate Affairs Commission is the apex body for the registration, control and regulation of all businesses operating in Nigeria.
From the last few years in Nigeria, we can see that at every street in Nigeria, there are POS operators in business.
We cannot deny the benefits of these operators to the regular citizens of the country as it has in so many ways helped individuals and other businesses in making payments of goods and services faster and easier.
It has also reduced the burden of the financial institutions in Nigeria by making the availability of deposits and withdrawal of funds easy especially in the rural areas.
However, for a smoother running of the business, the CAC on Wednesday, 8th May 2024, through its Registrar-General, Hussaini Magaji (SAN) directed that all persons and companies involved or wish to get involved in the business of Point of Sales (POS) operations to register with the CAC.
This is in line with the CBN Guidelines for Agent Banking, 2013 as ordered by the CBN and Section 863(1) of the Companies and Allied Matters Act (CAMA) 2020 which states:
“A person or association of persons shall not carry on business in Nigeria as a company, Limited Liability Partnership, Limited Partnership or under a Business Name, without being registered under the Act”.
The CAC announced that they must ensure they get registered on or before July 7, 2024.
CAC therefore advised all banks and POS operators to ensure they comply with this law to be legally compliant,, increase transparency in all financial transactions, and protect all customers from fraudulent activities.
If you are a POS operator in Nigeria who wishes to comply with the directive, please note that you can either register as a company or as a business name.
If you are registering as a business name, you can register either as a sole proprietor or as a partnership as a business name.
HOW TO REGISTER A POS OPERATOR BUSINESS IN NIGERIA WITH THE CORPORATE AFFAIRS COMMISSION (CAC)
The following are the documents that will be required for the registration:
- 2 different options of names for the business for Name search and reservation
- The services to be rendered which would include Pos operations.
- Names, home address, phone number, email address, Occupation, signatures of the sole proprietor or partners.
- Address of the business in Nigeria.
- Means of Identification of sole proprietor or partners.
Upon registration, the CAC will issue the Certificate of registration and status report.
If you are registering as the company, you must note and consider the following:
- The minimum number of directors can be one
- The minimum number of shareholders can be one
- Every company must have an address in Nigeria at the time of registration (registered office address).
- A person qualified to be a Director of the company must:
- Be above 18 years but not older than 70 years.
- Be a person of sound mind (not a mentally unstable person)
- Must not be a person declared by the bank to be a debtor.
- Not be disqualified by a High Court from being a director.
- Anybody can be a shareholder of a company except:
- They are below the age of 18 except there are 2 other adult shareholders.
- They are not mentally stable
- They are declared a debtor by the bank
- They are disqualified from being a director of a company
Please note that the minimum starting share capital is 100,000.
The following documents will be required for all companies rendering the services as a Pos operator in Nigeria.
- 2 different options of names for the company for Name search and reservation
- The services to be rendered by the company.
- Names, addresses, phone numbers, email address, Occupation, signatures of shareholders, directors, and/or secretary of the company.
- Address of the company in Nigeria.
- Filing fee and FIRS stamp duty fee for the registration.
- Means of identification of shareholders, directors, secretary .
- Please note that the CAC issue after registration is the Certificate of incorporation, Memorandum and Articles of Association and Status report.
Where the company wishes to register as a Payment Terminal Service Provider (PTSP) that will now be able to own and issue POS operating machines to POS operator agents, they must register as a company.
The requirements stated above will also apply with the exception of the amount of the minimum share capital which is 100 million.
Many POS operators in Nigeria have started to comply with the directive and are beginning to enjoy the benefits of being registered with the Corporate Affairs Commission. The most important right now is for you to avoid the penalties that may arise after the deadline.
At Charis Legal Practice, we are expert business lawyers who are able to assist you with the registration process and make it easier for you and your company. If you are in need of any of our services, click here
Charis Legal Practice Can Help!
We are experienced business lawyers specializing in helping business owners navigate the CAC registration process. Our services include:
- Simplified Registration: We handle the paperwork and ensure a smooth registration experience.
- Expert Guidance: We answer your questions and provide clear explanations.
- Time-Saving Efficiency: Focus on your business while we handle the legalities.
Don’t wait! Contact Charis Legal Practice today and secure your future in the thriving POS industry.
Here’s what you get:
- Fast & Easy Registration: Get registered before the deadline.
- Peace of Mind: Operate legally and avoid potential issues.
- Focus on Growth: Dedicate your time to building your business.
- Distance is not a barrier
- Visit our website: https://charislegalpractice.com.ng/