HOW TO REGISTER A BUSINESS NAME AND COMPANY IN NIGERIA
In this article, you’ll find out how business name or company registration can be done with the CAC and the top 3 reasons why you should register your business.
Steps for the Registration of a Business Name in Nigeria
Business name registration happens to be the lowest (as well as easiest) form of business registration in Nigeria. Below are the steps involved in the registration of a business name in Nigeria:
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Step I: Choosing your business names
Obviously, the choice of a suitable and non-existing business name is what comes first in the process of business name registration. By reason of this, you’ll have to create several names before visiting a nearby CAC office. Although it’s just one name you’ll register for your business, you have to think up a couple of befitting names as any name you’re eventually registering for your business must not have been registered by someone else.
At the CAC office you’re visiting for business name registration, a check will be run on the list of names you’re submitting to see which of the names isn’t in current use. This may then be chosen and registered as your business name.
Step II: Form filing
This step entails getting a form (at the CAC office) and providing the names you intend to check in the form. The other things you’ll be required to provide in the form are personal details such as your residential address, your full name, passport photographs and your other contact details including telephone number. In the course of this form filing, you’ll be charged a certain filing fee and it’s possible you find out the available name(s) for your business registration on the day of form filing.
Step III: Picking up your business certificate
Once your business name registration has been successfully executed, you can expect to obtain your business certificate in the next couple of days. While this certificate serves as a written confirmation of your successful business name registration, it is noteworthy that business name registration actually occurs in 24 hours as soon as you’ve chosen the name to register for your business.
Steps for the Registration of a Company in Nigeria
Unlike business name registration, company registration appears more procedural and elaborate. Below are the three steps you should follow for successful company registration in Nigeria:
Step I: Thinking up company names
This is likely some homework required of you so that you can eventually have a company name that has not been registered before. CAC will check whatever names you’re sending to it for availability and as such, you have to think up several names you consider befitting for your company.
Step II: Engaging the service of a reliable registration expert
For you to safely and legally register your company, it’s highly recommended that you work with a registration expert such as a chartered accountant or legal practitioner who should offer you professional guidance regarding the filling of several registration forms as well as sailing past certain technical issues.
Step III: Completing the forms
To carry out this step, you’ll have to visit the company registration portal (CRP) of the CAC. Follow the instructions below to proceed with your company registration on CRP:
- Fill necessary details in the pre-registration form CAC1.1
- Make necessary payment for filing and stamp duty
- Get the signed copies of your pre-registration documents ready. You’ll have to scan these copies and upload them on CRP in the following ways:
- Form CAC1.1
- Memorandum and Article of Association
- Recognized identification form for Director/Subscriber/Secretary
- Evidence of payment made to CAC
- After uploading the scanned copies for processing, prepare the original copies of the uploaded documents for submission to your preferred CAC office. It’s at this CAC office that you’ll receive the Certified True copies as well as your (company registration) certificate in return for the original copies you’re submitting
- Note that the business/company (registration) certificate is an essential document which you’ll receive at the end of the company registration process. Endeavour to safely keep the certificate as it could be required in future for essential purposes such as visa application, loan application, bank account creation and tax registration for your company
Top 3 Reasons Why You Should Register Your Business
Although some people neglect the need for registering their businesses, this doesn’t erase the fact that business registration is an indispensable requisite for formal business operation. Without any doubt, a number of benefits are attributable to business registration and these benefits are described (in this article) as the top 3 reasons why you should register your business:
- Separating your business from yourself –This is described as legal separation and it’s a beneficial way of ensuring that there’s no collision between your business liability and your personal liability. Although it isn’t all forms of business registration that offer it, legal separation likely guarantees some assurance of limited loss in the event of business or personal disaster.
- Giving proper identity to your business –This, undeniably, is one of the reasons why serious-minded people cannot undermine the importance of business registration. Of course, many people like doing formal transactions with registered businesses. They do this not only to assure themselves financial safety but also to ensure they’re doing business on a formal note. Importantly, people will likely take you seriously if you’re running your business under a registered business name rather than your personal name.
- Eligibility for external funding –It’s very possible that the funds at your disposal aren’t enough for your business needs. In this case, you might need to source funds externally and before you’re deemed qualified to obtain funds from a governmental body or even a serious financial institution, your business must have been duly registered with the CAC
Types Of Business Name Registrations In Nigeria
1. Business Names
It is the most common and doesn’t require the assistance of a professional.
Any individual or business owner can register their business name without hassles.
You don’t need to go through any law firm or accountant for any professional services regarding registering your business in Nigeria.
2. Limited Liability Company (LTD)
This type of business name registration is a little complicated and typically requires a business lawyer or accountant’s services.
The legal structure of this business is ideal for businesses with a vision to grow big.
Other types of business registration include:
- Limited by Guarantee
- Public Companies
- Limited by Shares
I am not going to treat those since it goes beyond the perimeters of this article.
At least, you’ve got a rough idea of the process of having your business registered.
CAC Office Addresses And Contact Details
In case registering your business online doesn’t sound appealing, you can visit the CAC office and have your business registered manually.
Here are the addresses of their offices. If your state is not listed, please make some inquiries.
1. CAC Office In Lagos
Address: 18/20 Catholic Mission St, Lagos Island, Lagos
Email Address of CAC: firstname.lastname@example.org
Address: Plot 7 Otunba Jobi Fele Way, Agidingbi, Ikeja
Email Address of CAC: email@example.com
2. CAC Office In Abuja
Address: 420, Tigris Crescent, Off Aguiyi Ironsi St, Maitama, Abuja
Email Address of CAC: firstname.lastname@example.org
3. CAC Office In Imo
Address: Port-Harcourt Rd, New Owerri, Owerri.
To find the CAC head office location in your state, do a Google search like:
“CAC Office address in ‘location.’
Replace the “location” with your current state, and you will see results.
Certificate Of Incorporation
When you successfully register your business name, the agency will issue a Certificate of Incorporation.
It will look like the image below, a proof that your business name is a registered entity.
It can also be called Certificate of Incorporation, so don’t allow the variation to confuse you.
Article Of Incorporation
The Article of Incorporation is a document called Memorandum of Association.
This unique document enlists essential information like business name, the number of share capital, and mode of allocation, address, and contact of the business.
If you’re working with a lawyer or chartered accountant, they will help you put this information together.
This document looks like the image below:
Difference Between A Business Name And An LTD Company
|Business Name||LTD Company|
|Ownership||Single entrepreneur||Two or more shareholders|
|Shareholding||None||From two to fifty entities|
|Legal liability||Business owner||Company/company assets|
|Intellectual property||None||Strong Ownership|
|Registration process||Easy and straightforward||Rigorous processes|
Frequently Asked Questions On Business Name Registration In Nigeria
Which Documents Do I Need To Upload To Register My Business Name?
The documents you will need to upload on the CAC website include:
- Notice of Approval (Availability Printout)
- Payment Receipt
- Method of Identification. Eg. National ID Card, Driver’s License, Voters Card, etc.
How Much Is Business Name Registration In Nigeria?
The cost of registering your business name is #10,000. There will be an additional fee of #500 for business name reservation.
How Long Does It Take To Register A Business Name?
It takes an average of 1 – 2 weeks to completely register your business. But if you’re running into some hurdles, it might take a little longer.
Is There A Difference Between Registering A Company And A Business Name?
Registering a business name is like registering a trading name you intend to use for a sole proprietorship business.
At the same time, a company is legally incorporated Limited Liability that separates your business from you as an entity.
Who Is The Head Of The Corporate Affairs Commission?
The current head and acting registrar-general goes in the person of Lady Azinge Azuka Obiageli.
We hope that this article has helped you find out how business registration is done in Nigeria. Also, we believe you’re convinced about the explained reasons on why you should register your business.__________________________________________________________________________ >COPYRIGHT WARNING!!
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