Would you like to know how to register a business name in Nigeria? Read this post as it provides you with all the important details.
The Corporate and Affairs Commission is responsible for business registration (CAC) in Nigeria. The Companies and Allied Matters Act allowed for the creation of the independent CAC in 1990. The management and regulation of businesses in Nigeria fall under their purview.
In the past, registering a business name in Nigeria was extremely difficult. The business registration would require a lot of documentation and would take several days to complete. This worked a lot of hardship on would-be entrepreneurs, particularly as one of the fundamental conditions for starting a business as an investor or entrepreneur is registering your company.
On the one hand, this means that only properly registered companies will be able to secure government loans, legally conduct businesses and attract foreign partnerships. On the other hand, the fact that the registration process was unclear to the average business owner made it impossible for most SMEs to be registered as business names in order for the owner to make them eligible for particular benefits from an investor or the government. Fortunately, the situation has really improved today. We’ll get to the process for this in a bit.
Why Register a Business Name in Nigeria?
If you own an SME in Nigeria today, there are several great reasons why you should register your company as a business name in Nigeria.
Business protection
Registering your business name guarantees your brand’s protection. Put differently, no one else will be permitted by law to deceive potential customers by carrying out any other form of business with your name.
This protection is very important because your brand name is who you are. Typically, it’s a distinctive moniker by which people remember your company. Whatever name you choose for your company, you can only assert complete ownership once it has been registered.
Defense against unlawful intimidation
You have a better chance of defending yourself against police violence and unlawful intimidation with a registered business name. There isn’t much to explain about this. We are all aware that most businesses in Nigeria frequently experience police harassment.
Imagine you get arrested by the police as a business owner. You can show the police your registered business license if it exists. You will be instantly discharged if your company is discovered on the CAC website. This will show the officers that you are not a fraudster, and they will have no choice but to let you go. Online businesses, for instance, are easily mistaken for fraud because they are not registered. If you lack the documentation to support the legitimacy of your internet business, you may be more vulnerable to maltreatment.
Opportunities for collaboration
As a business owner, the chance might present itself in the future for your business to secure a government contract or partnership with foreign investors. You might even, at some point, be given consideration for a federal contract. All these opportunities would not be feasible if your firm is not registered.
Business Reputation
Business name registration serves as proof that your company is reputable for customers that are located far away. This way, you can offer high-quality products or services, and people would learn about your company from far-off places in the world. However, potential clients might question your legitimacy if your company is not registered. They might not want to support you because they are unsure if your company is authentic. Your business becomes official and professional when its name is registered in accordance with Nigerian laws.
Business Perpetuation
Registering your business name ensures the proper and continuous running of the business even in your absence. Some companies have been known to shut down as a result of the death or illness of the owners. Some others have shut down because the owners pass away or become unwell. If the company is registered with CAC, its survival even after the owner’s passing is largely guaranteed.
How to Register a Business Name in Nigeria
Below are the required steps to take in registering a business name in Nigeria:
Pick a company name
Choosing a company name can occasionally be very difficult. You must associate your company name with a brand name. You should choose a name that is appropriate for your company.
The names you choose should be the subject of a short online search, and you should have up to three alternatives. This is to ensure that, to the best of your knowledge, you have at least selected names available.
Another option is to use a website like Namelix, a computerized tool that may assist you in picking a name for your company.
Send the CAC your preferred business name so it can be reserved.
In the past, the CAC’s company name reservation process took days to complete. Today, if you submit your request by 5 p.m., it only takes the same day and costs NGN 500.
Register your business
Following completion of the name reservation, you can move on to the actual registration of your business name. You must finish a pre-registration form through the online registration portal (CAC-BNo1).
Pay the filing fee
A receipt for your payment will be given to you once the filing fee has been paid. Be aware that you can pay directly through the website or the bank. The cost of business name registration depends on the type of company you are trying to register.
Prepare To Upload Your Documents.
The pre-registration documents must be prepared, signed, and uploaded to the website as a scanned copy for processing. The pre-registration substantiating documentation includes the application form, your filing fee receipt, and Means of Identification for the business proprietors.
Submit the original copies of your documents
The CAC office will need to receive the original copies of the documents you uploaded in step 5 above. You will need to provide the agency with this information for your certificate and the certified true copies of the documents. So make sure to keep the original copies of your registration documents safe.
Conclusion
You should now be fully knowledgeable about the process for registering a business name in Nigeria. To stimulate involvement from potential investors and business owners, the Corporate Affairs Commission (CAC) has streamlined the procedure for registering business names. You become qualified for financial support from the Bank of Industry when you register your company name.
Get your tax identification number (TIN) and a business name because every company in Nigeria is required to pay taxes. This can help you stay hassle-free as you strive to raise money for your company.
Kindly check out other exciting business articles on SME360.