The Corporate Affairs Commission- CAC POS Registration has set a two-month deadline for point-of-sale (POS) operators in the country to register their agents, merchants, and individuals by July 7, 2024. Aside from being an avenue for job creation, PoS operators play a significant role in financial transactions nationwide.

The Central Bank of Nigeria (CBN) requires all Point-of-Sale (PoS) operators and merchants (individuals and businesses) to register with the Corporate Affairs Commission (CAC).

This is in accordance with the Companies and Allied Matters Act (CAMA) 2020 and CBN guidelines for PoS operators. According to CAC, the move to compel the registration of the fintech companies with the CAC has come at a much-needed time as the companies have also been a key part of fraudulent transactions. In its Annual Fraud Landscape (January to December 2023) report, the Nigeria Inter-Bank Settlement System has said that financial institutions lost about N17.67 billion to fraud in 2023.

You might have a low-key project or a vision similar to the listed microfinance banks, Payment Service Providers (PSPs), or fintech companies. Well, here are a few steps to take to achieve this when wanting to register with CAC

Register your business

• Ensure your business is registered with the Corporate Affairs Commission (CAC) as a sole proprietorship, partnership, limited liability company, or another legal structure.

It’s essential to work closely with your acquiring bank, payment processor, and regulatory authorities to ensure that your POS terminal registration process is smooth and compliant with all relevant regulations and guidelines.

Obtain Tax Identification Number (TIN)

• Apply for a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS). This is a requirement for businesses operating in Nigeria.

Open a corporate bank account

• Open a corporate bank account for your business. This is necessary for processing transactions from your POS terminal.

Purchase a POS terminal

• Purchase a POS terminal from a registered and approved vendor or financial institution. Ensure that the POS terminal meets the required specifications and security standards.

Set up the POS terminal

• Set up the POS terminal with your business details, merchant identification number (MID), and other relevant information provided by your bank or payment processor.

Merchant registration

• Register as a merchant with your acquiring bank or payment processor. This involves providing your business details, bank account information, and any other required documentation.

The Registrar-General/Chief Executive Officer, CAC, Hussaini  Magaji, SAN, said the measure aims at safeguarding the businesses of fintech customers and strengthening the economy, the commission stated via its X handle, tweeting.

Compliance and documentation

• Ensure that your business complies with all regulatory requirements and documentation, including Know Your Customer (KYC) verification and anti-money laundering (AML) checks.

Activation and testing

• Activate your POS terminal by following the instructions provided by your acquiring bank or payment processor. Perform test transactions to ensure that the terminal is functioning correctly.

Compliance with POS guidelines

• Adhere to the guidelines and regulations set forth by regulatory authorities such as the Central Bank of Nigeria (CBN) regarding POS transactions, fees, and security protocols.

Renewal and maintenance

• Renew your POS terminal registration and comply with any maintenance requirements specified by your bank or payment processor to ensure uninterrupted service.

Before registering, whether online or offline, thoroughly research these key points.

1. Public Search: Type your desired business name in the search box to confirm if it is available or allowed
2. Reserve your name by filling out a form to secure your desired business name. Note: Classification for your PoS business is “Business Name.” Complete the form and make a ₦500 payment (excluding other charges) to receive your Availability Code
3. Pre-registration: Complete your registration using the availability code you’re provided with (you’ll find this on your dashboard once your business name has been reserved). You’ll need to provide details like your business name, address, and proposed business activities. You’ll also need digital copies of documents like a valid means of identification (Voter’s card, International passport, National Identity card, Driver’s license, etc), proof of address (utility bill, tenancy agreement), and a business plan (optional for sole proprietorships)

To register online

1: Visit the CAC website

2: Create an account with your phone number or NIN by clicking the “Register” option in the top right corner of the homepage

3: Go back to the homepage and click on “Online registration”

4: Follow the steps displayed on the screen, which include:

5: Pay the registration fee (₦10,000) using any of the payment options provided

6: Submit your completed form and documents electronically. The CAC will verify your information and notify you of the outcome

7: Upon successful registration, you’ll receive your Certificate of Registration sent to your email. This usually takes between three to five days