stmHave you been searching online for how to do your business name registration by yourself? You’re at the right place. This article features a step-by-step guide on how you can register your business name yourself. Stay tuned!
Business name registration is very important in Nigeria, this gives you an edge over most unregistered businesses as it is illegal to run a business without registering with Cooperate Affairs Commission (CAC).
But the process can be very hectic when you’re not properly guided. So do not worry, sit back and relax, and let us show you how it’s done.
Why Should You Register Your Business in Nigeria?
There are a whole lot of reasons why people register their business name in Nigeria. The most obvious one is to secure the name and make it unique.
It is not news that after you register your business name with CAC, nobody else can claim that name. If some other person uses that name to run any kind of business, then you can sue that person and you will be compensated.
Another obvious reason is that operating a business without proper registration is illegal and you could face sanction from the federal government and be asked to pay a fine when found wanting.
Business registration also gives you legal protection and it makes it easier for people to trust your brand and patronize you, it also makes it easier for you to raise money from Investors.
Benefits of Business Name Registration in Nigeria
The following are some of the advantages that registered firms have over unregistered businesses:
- Certificate of Incorporation (CAC Certificate)
- Separate Legal Entity
- Raising Significant Capital
- Reputation with Customers
- Legal Protection
- Access to Loans
Requirements for Business Registration in Nigeria
To register a business in Nigeria, you will need the following documentation:
- Proof that the business name has been approved.
- The General Characteristics of the Business
- The company’s address.
- Name, address, occupation, and other information about the business owners.
- The Proprietors’ Signature
Steps to Register a Business Name in Nigeria
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Check the Availability of Your Business Name
The names you like should be quickly searched online via the CAC official site, and you should have up to three backup choices. To the best of your knowledge, you must confirm that the names you have chosen are available for usage.
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Fill out and pay for your Pre-registration Form
Business name reservations at the CAC used to take days to respond with a result. But today, it takes less than 24 hours to get a response. You just need to pay the sum of NGN 500.
Upon the completion of the name reservation, you can now move to the official registration of your business which involves you filling out the CAC-BNo1 form online.
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Pay your filing fee
This stage involves you paying for your filing fee, after which a receipt will be sent to you. It is important to note that, this payment can be paid via bank or online at the CAC website.
The price of business name registration varies according to the characteristics of the business conducted under the name.
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Get your files ready for upload
The pre-registration documents must be prepared, signed, and uploaded to the website as a scanned copy for processing. The prerequisites for registering a business name are as follows.
- Application form
- Filing fee receipt
- Identify tools for business owners.
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Submit your documents in their original form.
The CAC office will need to receive the original, signed copies of the documents you uploaded in the previous step. In return for your certificate and the certified true copies of the documents, you will provide this information.
The Different Types of Business Structures in Nigeria
There are four main types of business structures in Nigeria: sole proprietorship, partnership, limited liability company (LLC), and incorporation. Let’s take a look at each one so you can decide which is right for your business.
- Sole Proprietorship: This is the most common type of business structure in Nigeria. A sole proprietor is someone who owns an unincorporated business by themselves.
This type of business is easy to set up and usually requires less paperwork than other structures. The downside is that you are personally liable for all debts and losses incurred by the business.
- Partnership: A partnership is an agreement between two or more people to carry on a business together. Partnerships can be either general or limited.
In a general partnership, all partners are equally liable for debts and losses incurred by the business. In a limited partnership, there is at least one partner who has unlimited liability and one or more partners who have limited liability.
- Limited Liability Company (LLC): An LLC is a type of company where the members’ liability is limited to their investment in the company.
This means that they are not personally liable for debts and losses incurred by the business. To set up an LLC, you will need to file articles of incorporation with the Corporate Affairs Commission (CAC).
- Incorporation: Incorporation is the process of creating a legal entity for your business.
This gives your business its own legal status and makes it separate from its owners. To incorporate your business, you will need to file articles of incorporation with the CAC
FAQs on Business Name Registration in Nigeria
Q: What is the first step to business name registration in Nigeria?
A: The first step is to choose a unique name for your business. Once you have settled on a name, you need to check if it is available by searching the CAC website. If the name is available, you can proceed to reserve it by filling out the online form.
Q: How much does it cost to register a business name in Nigeria?
A: The cost of registration depends on the type of business you want to register. For a sole proprietorship, the cost is N10,000, while for a partnership, it is N20,000. For a company, the cost is N30,000.
Q: How long does it take to register a business name in Nigeria?
A: The entire process of business name registration in Nigeria takes about two weeks.
Conclusion
You can’t be too careful when it comes to starting a business. Nigeria is a great place to do business, but you need to make sure you’re doing everything by the book.
That’s where this guide comes in. Follow these simple steps and you’ll be on your way to starting your own business in no time.
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