The Corporate Affairs Commission (CAC) will now integrate its operations with the Federal Inland Revenue Service (FIRS), regarding issuance of the Tax Identification Number (TIN) along with the Certificate of Incorporation.
This is a welcome development in line with the Ease of Doing Business in Nigeria Initiative. This new development of issuing business owners their Tax Identification Number (TIN) with their Certificate of Incorporation, will save them from the hustles and bustles of applying for their Tax Identification Number (TIN) separately through FIRS.
This new development was contained in a statement signed by the Corporate Affairs Commission (CAC) on Monday, June 29, and seen by Entrepreneurs.ng. It states that “Certificates of Incorporation of companies registered under part A of the CAMA will henceforth carry Tax Identification Number (TIN) issued by the FIRS”.
How Does This Improve The Ease Of Doing Business Index In Nigeria
Recall, that Nigeria experienced a 15-place rise on the World Bank’s 2020 Doing Business Index. Nigeria which is ranked 131st, from 146th last year; and up 39 places since 2016, shows that the grass is green for Nigerian budding entrepreneurs.
The index is a yearly ranking that assesses the business environment in 190 countries using various indicators including paying taxes, trading across borders, starting a business, and protecting minority investors.
There is progress with government efforts to create a stable business environment. There is a testament to Corporate Affairs Commission’s (CAC’s) focus on delivering even more substantive reforms for the improvement of the general business climate, by issuing Certificate of Incorporation (CAC Certificate) and TIN.
SO, entrepreneurs will find it much easier to open their corporate accounts upon receiving the Certificate of Incorporation (CAC Certificate), instead of waiting for the Federal Inland Revenue Service (FIRS) to issue them a Tax Identification Number (TIN).
This will, in turn, allows entrepreneurs to easily request loans and credit facilities from financial institutions. It will speed the process of filing for your Tax paperwork as well as reduce the need to visit the Federal Inland Revenue Service (FIRS) office.
In addition, the development is set to improve the accuracy of its database of registered businesses operating in the country and can aid it to widen its revenue net. Also, more engagement between reform-implementing organs of government and the private sector players will result in a more favorable validation of the reforms by the private sector.