07/10/2026
CAC REGISTRATION IS MORE THAN JUST FILLING FORMS.
Someone reached out to me yesterday concerning a company he was helping a client to register.
The company initially had a proposed ₦1 million share capital, but because of the nature of the company’s objects and requirements, they were asked to increase the share capital to ₦30 million
That alone was not the major concern.
The concern started when the shares were being allocated among the shareholders.
In the process, different classes of shares were being assigned, including ordinary/equity shares and preference shares, without sufficient consideration of the rights and implications attached to those classes.
And this is where people need to be careful.
Shareholding is not simply about dividing a number among shareholders.
The type of shares issued, the rights attached to them, voting arrangements, dividends, transfer provisions, control and other terms can have significant implications for how a company operates and how shareholders relate to one another in the future.
Imagine a situation where the people actually building and running the business are structured in one way, while someone who is not involved in the day-to-day business is given a different class of shares with preferential rights.
What happens when disagreements arise?
What happens when the company wants to raise more capital?
What happens when shareholders want to transfer their interests?
What happens when there is a dispute over control, dividends or other shareholder rights?
These are the things that should be considered before the documents are submitted, not after a dispute has already started.
This is why I always advise business owners:
Don't just hand over your company registration to someone because they know how to fill a CAC form.
Company registration is not merely about getting a certificate.
It is about properly structuring the legal and ownership foundation of your business from the beginning.
A mistake made during incorporation can become much more difficult, and expensive, to correct later.
If you have any CAC registration, company restructuring, post-incorporation compliance or business documentation matter, speak with people who understand both the registration process and the business implications.
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ILISS Academy & Consulting Ltd.
Building Businesses Beyond Registration.