Nigerian Corporate Affairs Commission (CAC) is collaborating with the Federal Inland Revenue Service (FIRS) to issue Tax Identification Numbers (TIN) alongside the Certificate of Incorporation for companies and businesses.
In a statement released on Monday, June 29, via the commission’s Twitter handle, it was revealed that business owners will no longer need to apply for the issuance of TIN from the FIRS after incorporation.
— Corporate Affairs Commission (@cacnigeria1) June 29, 2020
“This is to inform our esteemed customer that as part of the Ease of Doing Business Initiative, Certificates of Incorporation of Companies registered under Part A of CAMA will henceforth carry Tax Identification Numbers issued by the Federal Inland Revenue Service (FIRS). This has dispensed with the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation,” reads the statement from the commission.
Prior to this, small business owners and companies will need to apply separately to the FIRS for their TIN after registering the company with the CAC. This process will probably take a week or more before the identification number is issued.
However, the new development will see that companies and business owners can now proceed to open a corporate account when they receive a Certificate of Incorporation from the Corporate Affairs Commission (CAC). Furthermore, this will enable business owners to request for loans and credit facilities from financial institutions without having to visit the FIRS’ office.
In recent times, the federal government through some of its agencies has supported small businesses and companies amid the global pandemic. Recall that the Federal Inland Revenue Service offered to waive interests and penalties for taxpayers on outstanding tax debts, if only they pay their debts in full on or before May 31, 2020.
On the other hand, it is interesting to note that the Corporate Affairs Commission was established in 1990 vide Companies and Allied Matters Act no 1 (CAMA) 1990. As amended, it’s now on Act cap C20 Laws of Federation of Nigeria. The commission is an autonomous body saddled with the responsibility of regulating the formation and management of companies in Nigeria.
While this is an appealing move by the federal government to ease businesses and bring relief to entrepreneurs, we can’t but anticipate other initiatives the authorities have in play as part of the Ease of Doing Business Initiative.
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