How To Register A Business Name In Nigeria Review
Table of Contents
- Introduction
- What is a Business Name?
- Why Should I Register My Business Name in Nigeria
- 3 Quick Steps To Register a Business Name in Nigeria
- Account Registration
- Name Reservation
- Business Name Registration
- Requirements to Register a Business in Nigeria
- How Much Does it Take to Register a Business Name in Nigeria?
- Conclusion
Introduction
This article is intended for any business owner who is interested in registering his or her business name in Nigeria under part B of the Companies and Allied Matters Act. This process is therefore deemed as business name registration.
A registered business name is one of the three general company structures which an individual can register in Nigeria, the other two are incorporated companies and incorporated trustees respectively.
Note that there exist differences in registering a business name as against the incorporated company. You can research or read more in details on CAC website.
After choosing a business name for your new brand, you will want to register it to have full ownership and secure your brand identity.
If you need our help in registering a business name for you at an affordable fee of N25,000 or $50, chat us on Whatsapp with the following numbers: 08105563657.
If you want to continue with the business name registration yourself, then the following are easy steps you can follow to guide you.
What is a Business Name?
A business name is your business legal identity. It can be your own personal name, nickname or something entirely different and unique to you. Your business name will be public, so it’s important that you pick the right one for you.
A business name is very important for official correspondence, such as letters and invoices. Business name registration in Nigeria is fairly straightforward, and entrepreneurs or investors can register their business name in Nigeria pretty easily.
This registration is done by the Corporate Affairs Commission (CAC) which was established by the Companies and Allied Matters Act in the year 1990 to regulate the formation and management of companies in Nigeria.
Also, the CAC has the responsibility to register a business name in Nigeria. Unlike before private individuals can now register their business at the comfort of their homes
Why Should I Register My Business Name in Nigeria
As a business in Nigeria, there are many benefits for registering your business name with CAC. They are:
- To protect your legal liability
- Ability to open a corporate account for your business.
- You have a greater chance of attracting investors to your business.
- It builds trust and credibility with your existing and potential customers.
- Being able to apply for loans and grants with your business name.
- You qualify to receive NYSC interns from the federal government.
- Business registration is the first step to building a structure for your business.
- It prevents being held responsible for any civil wrong committed by the business.
- You can easily apply for a visa to travel for business meetings, workshops and conferences.
3 Quick Steps To Register a Business Name in Nigeria
Here is a step by step guide on how to register your business in Nigeria with the Corporate Affairs Commission. It includes three key phases:
1. Account Creation
2. Name Reservations
3. Name Registration
Now let take a look at each of them in-depth
Account Registration
Step One: First Register on CAC website with the following link: pre.cac.gov.ng
Step Two: After successful registration, login to the CAC website with your login details you used during the registration
Name Reservation
Step One: The next thing is to reserve a name for the business. But you have to first do "Availability search" from the dashboard to ensure the business name is not already used or taken. If the name is not existing before, then you go to reserve the name before it is used by someone else.
- From the dashboard, click on "New Name Reservation" .
- Under "name and Type", click the classification of the Business.
- Then click "save and continue"
Step Two: The next step is the objective:
- under the objective section, fill in new incorporation as a reason for availability search.
- Ensure you fill all fields marked as red.
- Then save and continue to preview.
Preview the details and make sure all your details are void of errors.
Step Three: You will be required to pay the sum of N500. To do that, click pay by Remita to receipt payment.
On the Remita page, you will see a list of different payment methods. Choose the one most appropriate to you and pay.
After successful payment, you will be automatically redirected to your dashboard where your reservation will enter pending.
Note that you have a maximum of 60 days after application to reserve the proposed business name.
In addition, after 60 days the application will be cancelled.
Business Name Registration
Now that we have your business name reservation successful, let’s proceed to register the business name.
After successful approval, you will receive an email. When you log in to your dashboard, you will see reserved. See screenshot below.
Then follow the steps below to successfully register the approved business name
Step One:
When you log in to your dashboard, you will see "Reserved",
- Click on it and it will bring up your approval history.
- The next step is to click on "start registration" beside your approved name and start registration.
- On the business details, enter your correct business details
Then click on save to continue
Step Two:
- Under particulars of proprietors, Enter the particulars of each proprietor.
-Click Save and Continue.
Step Three:
- Under the nature of business.
Fill in the right details and make sure you fill in the business description in “other nature of business description”.
- Click Save and Continue.
Step Four:
- Upload all required documents.
- Click Save and Continue to preview your entries.
Step Five:
Also, make sure you go review all the information carefully to avoid registering the wrong information.
Step Six:
- Click on receipt payment to pay for your registration.
- After payment, remember to stay on the payment page as you will be automatically redirected to your dashboard to download the receipt of your payment.
- Download receipt of payment.
- Once your registration is successful, your certificate will be automatically redirected to your registration panel where you can download your certificate.
Boom!!!…Congratulations your business name have been successfully registered
Requirements to Register a Business in Nigeria
After the 2020 amendment of the Company Allied and Matters Act (CAMA) by the CAC, there’s has been some new development on the principal laws guiding business and company formation in Nigeria.
The new requirements to register a business in Nigeria are:
- The prospective applicant must be above 18 years. Except where there are two or more adults having shares in the business.
- You must have two proposed names ready for the registration in case one is unavailable the other can be an option.
- A name that is already in use cannot be registered by another company, this also includes a name related to any government agency.
- The objective of your business must be clearly stated when applying for your business name
- You must indicate the type of business. Either is a private limited company, a private unlimited company or a company limited by guarantee.
- The physical and verifiable address is a must, even if you write just any address they will verify it.
- The share owned by each partner must be clearly stated.
- You must provide a means of identification. Such as a voter’s card, national ID, driver’s license or international passport.
How Much Does it Take to Register a Business Name in Nigeria?
- Name reservation for prospective business owners is now N1000
- The registration fee of a private company with a share capital less than N1,000,000 is N10,000
- The registration amount for a private company with a share capital of more than N1m and up to N500m is N5,000 for every 1m shares of the company.
- While that of a private company of above N500m share capital costs N7,500 for every 1m shares of the company.
- Public company registration for the first N1m share capital or fewer costs N20,000
Lastly, registration of a company not having a share capital costs N20,000.
Conclusion
Lastly, you have all the information on how to register a business name in Nigeria. Also importantly, how to implement it.
You can do it yourself.
Note that you can also hire the services of a legal practitioner or any other third party to register your business name.
If you need such such service, you can chat this number on Whatsapp: +2348105563657
In addition to getting a business name, endeavour to get your unique Tax Identification Number (TIN). It is a requirement that every business pays tax.
This will help you avoid any hassles while trying to access a loan for your business.
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