How To Register A Business Name In Nigeria (Full Details). Do you have a business that is not registered? Do you wish to know how to register your business? Well, this article is for you. Read and digest.
Table Of Contents
- 1 Introduction
- 2 The benefits of registering your business name
- 3 Steps to register a business
- 4 Conclusion
Previously, registering a company name in Nigeria was a time-consuming process. It would take many days and a lot of paperwork to get everything in order. In Nigeria, registering a company name is no longer difficult. As an investor or entrepreneur, one of the most important conditions for beginning a firm is the registration of a business name. If you want to establish a business and are looking for business ideas in Nigeria, this article can help you.
An investor will only be interested in a properly registered firm. On the other hand, in order for an entrepreneur’s firm to be eligible for certain benefits from an investor or the government, it must be registered as a corporation. The first thing to do before registering a company name is to acquire the relevant prerequisites or papers to be utilised for the registration. The procedures for registering a business name are basic, requiring just the names and identity of the firm’s partners or proprietors if more than one individual seeks to register the business name. If required, the criteria may additionally include a partnership deed.
The benefits of registering your business name
1. Protection of brand name
Your brand’s name serves as your identification. It is generally a one-of-a-kind moniker by which your company is known. You may only claim complete ownership of your company’s name after it has been registered.
2. Legal liability protection
Another incentive is to register your company with CAC. This protects the business owner from being held liable for any civil offence caused by the company.
3. Safety from police violence
This doesn’t require much explanation. We all know that wealthy internet business people in Nigeria are frequently harassed by the authorities. You can show the police officers your online business license if it is registered. If your company is discovered on the CAC website, you will be discharged immediately. This tells the police that you are not participating in any fraudulent activity.
4. Contracts between foreign investors and the government
The chance may present itself in the future. You could desire to collaborate with huge corporations from both overseas and within Nigeria. In fact, you may be considered for a federal contract at some time. This will not be feasible if your company is not registered.
5. Evidence that your company is authentic to remote customers
Your products or services might be of high quality. People may learn about your company from far-flung corners of the globe. Potential clients may suspect your legitimacy if your company is not registered. They may be hesitant to patronize you from afar because they are unsure if your company is authentic.
Steps to register a business
1. Check the Availability of Names
The applicant must select two distinct proposed names for the company, after which he must check for availability of the proposed names to determine whether one of the names is available and not already in use by another company; if one of the names is available, it will be reserved for the applicant by the CAC.
2. Complete the Pre-registration Forms
The applicant can then proceed, either by himself or via an authorised agent, to fill out pre-incorporation forms, where he will be expected to supply some crucial information such as
- The approved name and the proposed kind of business (is the company a private company, is it limited by shares, unlimited or public company, etc.)
- A description of the main business activity.
- The registered office address and, if different, the head office address, as well as the company’s email address and phone number.
3. Pay the filing fee and stamp duties
The applicant must pay the necessary official filing fee and stamp duties online or in person at a bank using remita. With certain of the incorporation forms, an electronic stamp will be placed to the Memorandum and Articles of Association upon payment.
4. Prepare and upload documents
The applicant must scan and upload the required documents, which include the valid identification of the director/shareholder and Witness; their signatures on plain sheets of paper; and any other relevant documents, such as the Company Resolution and Certificate of Incorporation where another company will be among the shareholders of the new company to be registered.
5. Application for registration
The next step is to submit the application for approval, which will be evaluated by the CAC and authorised if everything is in order.
Some of the regulations that govern business registration include share capital thresholds for specific sectors, which dictate a minimum share capital that certain businesses in particular business sectors must have in order to be registered.
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