YOUR MINISTRY OR CHURCH MUST BE REGISTERED

 

Pros and Cons of Registering Your Ministry or Church With The Corporate Affairs Commission (CAC) 

  Introduction

The Corporate Affairs Commission (CAC) is the statutory body charged with the administration of the Companies and Allied Matters Act (the Act) which includes the regulation and supervision of the formation, incorporation, registration, management, and winding up of companies (including ministries and churches) in Nigeria. Section 7 of the Act sets out the functions of the commission, as follows:

(a)  Administration of the Act including the regulation and supervision of the formation, incorporation, registration, management, and winding up of companies.

(b)  Establishment and maintenance of Companies Registry and offices in all the states of the Federation.

(c) Investigation into the affairs of any company where the interest of the shareholders and the public so demand

(d) Other functions as may be specified by any Act or enactment for giving full effect to the provisions of this Act, and

(e) Undertaking other activities as are necessary or expedient for giving full effect to the provisions of this Act.

 

PROS OF CAC REGISTRATION

Recently, the Central Bank of Nigeria (CBN) released a directive that all Ministry or Churches that opened bank accounts without their registration certificate should ensure that they regularize their bank accounts or would be closed down pending regularization.

1)   Opening of Corporate Account: In Nigeria, an artificial person cannot open an account without registering with the CAC. When a Ministry or Church registers with the CAC, they can open a valid Ministry or Church account with the Ministry or Church name without hitches, which in turn helps your members and partners trust the Ministry or Church regarding seed sowing.

2)   Legal Entity: It is obvious that the registration of a Ministry or Church is very important for authenticity, good reputation, and legal recognition. When a Ministry or Church is registered, the Ministry or Church owner has a separate legal identity from the Ministry or Church itself. Thus, the Ministry or Church owner gets separate legal protection. Where liability arises from the Ministry or Church, the owner will not be held personally liable or responsible.

3)   Credit Facility: It is easier to secure loans from banks with a registered Ministry or Church. Funding is critical in any Ministry or Church; and when it becomes necessary to source it externally, especially from banks, your legal Ministry or Church documents facilitate the process.

4)   Travelling Opportunities: You can easily obtain a visa and travel to any country for Ministry or Church purposes.  Embassies fast-tracks the process of visa application when it dawns on them that such ministry is legalized by the government.  It gives them assurance that such person is traceable should in case of any eventualities.

CONS OF CAC REGISTRATION

This lecture will not be completed if we don’t treat the cons that come with CAC registration.  Here we will be looking at some cons of CAC registration. But when you weigh the advantages over the disadvantages, you will discover that it pays to legalize your organization with government for peace of mind and ease of doing ministry.

1)   Your Loss of Personal "Ownership": If a Church or Ministry is incorporated, one person doesn't retain complete control of the entity. The corporation is governed by a board of trustees.

2)   Corporate Organization Requires Structure: When you form a corporation, you are required to follow all of the rules outlined by the government. This includes the management of the corporation, operational requirements, and the corporation's accounting practices.

3)   The Headache of Ongoing Paperwork: Most corporations are required to file annual reports on the financial status of the organization. Ongoing paperwork also includes tax returns, accounting records, meeting minutes, etc.

4)   Difficulty Dissolving After Registration: While perpetual existence is a benefit of incorporating, it can also be a disadvantage because it can require significant time and money to complete the necessary legal procedures for dissolution or transferring to the successor. Though this is on a rare occasion.

Information necessary for Church or Ministry Registration

1)   Name of the Church or Ministry

2)   Address

3)   Trustee details as follows:

a.   Full name

b.   Full address

c.    Means of identification

d.   Passport photo

e.    Signature

CONCLUSION

Conclusively, the importance of Ministry or Church registration cannot be overstated as ownership of the registration certificate is necessary to confer the right to operate a Ministry or Church legally and make available all rights and privileges accorded to Non-government organizations (NGOs). Government’s policy changes with change of leadership.  A government may make laws that will not favour unregistered churches or ministries.  It is always good to be on a safe side. A Ministry or Church can only be registered as an incorporated trustee. There is no better time to register your Ministry or Church than Now!

 

The content of this piece is intended to provide a general guide to the subject matter. Specialist’s advice should be sought about your specific circumstances. If you want more information about CAC registration, please feel free to contact us. You can  reach us via               +234 913 026 7878 or muyiwasam@gmail.com.