Have you started up a business and you are looking at how to register your business and you don’t know how to go about it? This post will let you in on how to register your business name in Nigeria. You should be aware at this time that you’ll need to visit the Corporate Affairs Commission, CAC in Nigeria to get your business registered.
A good name is better than silver. What your business is called by is more important than the profit margin it amasses. Having your business name registered has some advantages accrued to it. Some of this include; enjoying the privileges of being a legal entity, applying for a business loan and so on.
With a registered business name, there are lots of operational benefits to enjoy. In the course of this article, we would look at the steps on how to register your business name in Nigeria.
The Corporate Affairs Commission, CAC is the government body empowered with the responsibility of registering new business names and companies in Nigeria. On registering your business name with the CAC, no other company or individual can register or use the same name to transact business in Nigeria.
The price for registration of new businesses vary depending on whether you’re registering the business by yourself or via a lawyer.
Why should I get my business name registered?
As stated earlier on, you would have a lot of operational benefits if you have your business name registered. One of such benefits is that your business would have a formal look. Your customers tend to deal with you with more trust and formality if your business is registered. As a plus, you would have a good affiliation with banks. You can open a bank account for your business dealings with a registered business name. You can even apply for a business SME loan. Some other bonuses could be the legal immunity you enjoy when your business name is registered.
Imagine applying for a loan and then default on the long run. This scenario where you have a registered business name would imply that the lender cannot tamper with your personal assets. Instead, the lender can only tamper with the assets of the company. so, with these advantages that have been brought to light, why not go on to have your business name registered today?
Where should I go to register my business name?
You can register your business name in the corporate affairs commission also known as the (CAC). The CAC was established in 1990 by the Nigerian Federal Government. The Job of the CAC is to register and maintain the registry of business names and companies in Nigeria. they have branches all over the 36 states of Nigeria. That does not exclude the FCT( Federal capital territory ), Abuja.
How do I register My business name?
Having your business name registered can take from 2 weeks to a month. Stick with me as we go through the steps of how to register your business name in Nigeria.
Step 1: Choose a name for your business
Picking a name for your business can take quite a toll. That doesn’t exempt its vitality. Your business name has to be unique and most importantly commercially oriented( that is if your business is about merchandise of any sort). Any business that you select should be able to communicate a thousand-word description of your enterprise in one phrase. The final tip for choosing a business name is that it should be related to your business niche. You might want to involve an investment expert on this, should it turn out to be quite a task to choose a name.
Step 2: Take a trip to the Nearest Corporate Affairs Commission(CAC) Office
This federal body is responsible for the registration of new businesses in Nigeria. When you visit the CAC, the first thing you need to do is to check for the availability of the name you want. There is a form known as the “FORM 008”. You would be required to accurately fill the form. This would help avoid any hooks in the long run of your business name registration.
The CAC would take up to two weeks to get back to you. In some cases, it wouldn’t take that long. If on getting back, the name you inquired for is not available, you have to repeat the former process. If your business name is available, you can then go on with the next step on our subsequent paragraphs.
Step3: Take another trip to the Corporate Affairs Commission Office
There is yet another form to fill in this step. This form is called “Form 001”. It has to be filled with all scrutiny and accuracy. Also, doesn’t forget to ask questions if you need any sort of clarifications. After filling up Form 001, you would have to pay a fee of #10,000 only.
After making the payment, you would be given an affidavit/attestation form. Afterwards, you would need to endorse the Affidavit in any nearest court magistrate. Involving the court here might require at least a minimum fee of N1000 naira only.
Additionally, you would need to provide some important documents for form 001. Some of this include 2 passport photographs, details of the business partner, Partners passport photograph would be also required.
Step 4: Collecting your Bussiness name certificate of registration
When all the steps have been completed, you would need to wait for a couple of weeks before going back to the CAC. If everything went well in the application procedure, you would have to wait for two weeks to receive your certificate.
Now that your business has been registered, you only have to wait a little for the collection of your business name certificate. This should take up to 7 -10 working days for your Certificate to be ready for pick. If your company is a Limited Company, your certificate will be sent to you once it is ready.
Some Benefits of Registering your Business name in Nigeria
Imagine a scenario where someone else snaps up your business name. You won’t be able to register it any more ith CAC. And besides, the CAC is very strict on its policies relating to name similarities. When you register your you ave it reserved to yourself.
You will get a certificate of Incorporation
This certificate has a lot of values attached to it. It is the identity or seal that shows your clients that you are serious in your business dealings. As a general practice, some companies paste a copy of their CAC certificate around their business premises. This helps communicate to their customers that they have a lot of credibilities.
Gain a lot of reputation
When you register your business, you gain a lot of interest and reputation in your business niche. It becomes easier to reach out to a lot of prospective customers with a formal font. That font is a registered business name.
A business that is not registered might not have a strong foundation. With a registered name, you can push to have a continuity plan peradventure you die! It is important to note that without a continuity plan, your business might have a short life span.