Navigating the regulatory framework is paramount for establishing a cake business in Nigeria. It involves understanding licensing procedures, complying with health and safety standards, and ensuring that your cake business is rightly positioned to scale.
Registration and Licensing Requirements for a Cake Business in Nigeria
1. Registration with the Corporate Affairs Commission (CAC): One of the key registration and licensing requirements for your cake business is registering your business name with CAC. Before you adopt a Business Name or Limited Liability, ensure you understand the tax implications and filing requirements for both before you make a selection.
To register a business name in Nigeria, take the following steps:
- Choose and reserve a name
- Complete the business name registration forms
- Payment of CAC Filing Fees: The payment of the fees can be done online or in a bank. However, where the applicant engages an accredited agent, the agent will also charge a professional fee for the services.
- Submission of Form: Once the payment has been approved, you may then submit the forms online, CAC will review your documentation and if all is in order, you will be notified that your application has been approved, and your Business Name Certificate is ready for collection.
However, the steps are a bit different if you want to register a Limited Liability. These include:
- Choose and reserve a name; same process as above
- Register the Details of the Shareholders: Under Nigerian law, a private company must have a minimum of 2 members, and can only have a maximum of 50 members. The founding members must not be – under the age of 18 years old (unless at least 2 other members are over the age of 18), of unsound mind, an undischarged bankrupt, or disqualified by CAMA from being a Director. The information which you will need to present include: The name of the shareholders, residential address, occupation, email address and mobile phone number. You will also need to provide a recognised identity document e.g. international passport, drivers license or national identity card.
- Prepare the Documentation: The information which you will need to present include: Memorandum and Articles of Association, Notice of registered address of the business, List, particulars, and consent of the first Directors of the company, Statement of compliance by legal practitioner. Under the new CAC process, individuals are able to get all the required documentation from the CAC portal.
- However, please note that with respect to the Memorandum of Association and Articles of Association, the CAC portal only provides templates, and therefore if your line of business is one which requires special documentation, you should consider getting these drafted professionally by a lawyer.
- Payment of CAC Filing Fees
2. Food Handlers Test: The food handlers test is designed to ensure that those tasked with handling food do not pose any risk to others. Hence, you are required to conduct a food handlers test for your staff who handle and interface with food, drinks and confectioneries.
This test should be done every 6 months with a government approved medical laboratory or hospital and you will be given a certificate for it. The test covers relevant past medical history, physical examination and laboratory examination.
3. National Agency for Food & Drug Administration (NAFDAC) Certification: If you are customising cakes and selling to individuals, you will not be needing NAFDAC certification. If you are packaging cakes to supply to stores, NAFDAC certification becomes necessary.
For more information on the processes for getting a NAFDAC registration number for your cake business, download this comprehensive business guide.