Why is My Company Showing Inactive on CAC? Full Guide 2025

Introduction

The Corporate Affairs Commission (CAC) is the official regulatory body responsible for company registration and business regulation in Nigeria.
Many entrepreneurs and business owners often face a situation where their companies show as “inactive” or even get delisted from the CAC database.
This article provides an in-depth explanation of why a company may appear inactive on CAC, how to verify if a business is registered, the cost of company registration in Nigeria, and the process of relisting a delisted company.
Whether you are a startup founder, small business owner, or corporate executive, this guide will give you practical answers.

Why is My Company Showing Inactive on CAC?

If your company is showing as inactive on the Corporate Affairs Commission portal, it could be due to several reasons:

• Failure to File Annual Returns: Companies in Nigeria are required to file annual returns with CAC. Failure to comply for consecutive years can make a company inactive.
• Non-payment of Fees: Unpaid registration renewal fees or penalties can render a company inactive.
• Incomplete Incorporation Process: Some companies are marked inactive because the registration process was not fully completed or validated.
• Delisting Due to Dormancy: CAC periodically removes dormant or non-compliant companies from its active records.
• Errors in CAC Records: Sometimes, a technical error in the CAC database may cause a company to appear inactive when it is actually in good standing.

To avoid inactivity status, companies must ensure timely filing of returns, compliance with CAC guidelines, and regular updates of company records.

How to Know if a Company is Registered Under CAC

Checking if a company is registered under the CAC is simple and can be done online. Here are the steps:

1. Visit the official CAC Public Search Portal.
2. Enter the company name or RC number in the search field.
3. Click on search to view company details such as registration status, RC number, and type of entity.

If the company appears in the CAC database, it is duly registered. If not, it is either unregistered, inactive, or delisted.

How Much to Register a Company with CAC?

The cost of company registration with the CAC depends on the type and size of the company. Below is a breakdown of estimated fees as of 2025:

• Business Name Registration: ₦10,000 – ₦15,000
• Private Company Limited by Shares: ₦25,000 – ₦50,000 (depending on share capital)
• Incorporated Trustees (NGOs, Associations, Religious Bodies): ₦50,000 – ₦100,000
• Public Company: ₦100,000 and above

Additional fees may apply for name reservation (₦500 to ₦1,000), stamp duties, and professional service charges if using a lawyer or accredited CAC agent.
The entire process can take between 1–2 weeks when done online.

How to Relist a Delisted Company in Nigeria

Companies that have been delisted by the CAC for failing to comply with statutory requirements can apply for relisting.
The process involves the following steps:

1. Write a Formal Application: The directors of the company must write to CAC requesting relisting.
2. Clear Outstanding Returns: Payment of all outstanding annual returns and penalties is required.
3. Submit Required Documents: Copies of incorporation certificates, memorandum and articles of association, and updated company records.
4. Pay Relisting Fees: CAC charges relisting and administrative fees depending on the number of years the company has been inactive.
5. Review and Approval: Once documents are verified and fees paid, CAC reinstates the company into its active database.

It is advisable to work with a CAC-accredited consultant or lawyer when seeking relisting to ensure smooth compliance with legal requirements.

Why Maintaining CAC Compliance is Important

Staying compliant with CAC requirements offers several benefits:

• Access to Contracts: Many government and private contracts require proof of active CAC registration.
• Bank Account Operations: Banks require updated CAC documents before opening or maintaining corporate accounts.
• Credibility: A company that is active with CAC enjoys credibility and trust in the Nigerian business environment.
• Legal Protection: Registered companies have legal standing to sue or be sued in their corporate names.
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Frequently Asked Questions (FAQs)

1. How long does it take to relist a delisted company?

Relisting may take 2–6 weeks depending on CAC’s workload and how quickly required documents are submitted.

2. Can a delisted company still operate?

No, a delisted company is not recognized as a legal entity until it is reinstated.

3. What happens if my company is inactive but not delisted?

You can reactivate it by filing outstanding annual returns and paying penalties.

4. Can cyber cafes or business centers help with CAC processes?

Yes, cyber cafes can help you access the CAC portal, but only accredited CAC agents or lawyers can handle official submissions.