BUSINESS NAME REGISTRATION IN NIGERIA – CAC
Registering a business name in Nigeria with CAC comes in simple steps if you know what to do. With a registered business name, you can open a current account with any bank in Nigeria. The earlier you register your business, the better as people will take you more seriously when your business in registered.
For any legal business entity to exist in Nigeria, it must first be registered with the CAC (Corporate Affairs Commission). This is the agency of government saddled with the responsibility by law to regulate how business is being done in Nigeria.
This includes the registration of all businesses, and ensuring that these businesses follow laid down procedures, and operate within the provided legal framework, failure of which attracts sanctions.
This article focuses on how to register your business name with the CAC in Nigeria within the shortest possible time, will minimal stress.
Why Registering a Business is So Important?
Businesses are all forms of economic or commercial activities that involve individuals and groups. The need to have a coordinating body is crucial to the success and growth of these businesses, hence the existence of organs such as the CAC.
Registration of any business gives that business the rights to ownership of its business name. It has the sole claim to the business name. Other advantages include enabling a business to gain the confidence and trust of others to do business with it.
Key Things You Should Consider When Registering Your Business Name with CAC in Nigeria
There are certain key areas that should not be overlooked by anyone wishing to register his/her business name. These key areas include the following;
Avoid the Use of Complicated Business Names
This is an area where utmost care should be taken to avoid using “specialized” names so to speak in their business names. These types of names include, but not limited to “engineering, consultancy, expert among several others.
For the sake of clarity, the CAC will require that you show certificates that backup these areas of expertise, which takes a longer period of time to process. Avoiding these in your business names will greatly help in reducing the processing time of your business name application.
Under What Type of Model Does Your Business Name Application Fall In?
This is important in helping you properly fill in the” availability form” which carries the types of business models, some of which include; the Public Liability Company (PLC), Business Name, Incorporate Trustees, among several other options.
The most important option to choose from is the business name option, as that is the purpose for your application. You should not mistakenly tick an option different from the business name option, as it may lead to further delay in achieving your business name registration.
Your Business Name Should be Unique
This is an area where several applicants fail, as they choose everyday names (common and widely used names) for their businesses. During the course of registration for business name, their application gets turned down because the names submitted have already been picked by other people.
This creates a problem here, as you have to start the process all over again by submitting fresh names. Creativity is key here. Select a business name that is unique and stands the chance of getting selected.
The Procedure of Registering Your Business Name with CAC
Registering a business name to many seem so tough and daunting to many. They feel so because they think that the procedures are so much with a lot of bureaucratic bottlenecks involved in the registration process.
However, this is not so, as it is far easier than you think. Yes, far easier, especially if you are properly informed which is the main purpose for writing this article. These steps include;
Pay a Visit to Any CAC Office Nearest to You
Simply visit any nearest CAC office to you, and get the form 1 at the rate of N200. After this, carefully follow the instruction given in this form and fill out the form correctly. In this form, details such as your personal details including your address and name are required.
Another section in the form asks for your business names. Spaces for a first choice and second choice are given, to allow for easy switch to an alternative if any of the names are already taken.
A period of 3 days is given to the entrepreneur to come back to find out if their business names are available or have been taken. If taken, then the procedure should be repeated. If accepted, the next stage of registration commences.
Next Step of Registration
After ensuring that the chosen business name is available, the next process begins, which is getting the business name registration form. This form should be carefully filled and the appropriate option chosen, which in this case, is under the business name category.
However, during the application process, confusions might likely spring up, as a result, help should be asked from competent persons, (advisably those in the CAC office)
Visit the Courts for Finalisation of Registration
It is a requirement that all business name applicants visit the courts for an attestation to information supplied which should be either the federal high court or the state high court.
After this, all the documents should be submitted at the CAC office for further verification and final certification which does not take much time.
This article has focused on the how of registering a business name with the CAC in Nigeria and the procedures involved. Using the information supplied, the entrepreneur gains the right information on the processes and steps involved in registering a business name with the CAC.
Company Name Registration In Nigeria: Steps, Requirements And Fees.
Why You Must Register your Business
It is recommended that you register your company name for the following reasons:
==> You have the authority under the law to use the name for business
==> You can only do business with government agencies or partner with big companies when your business is registered
==> People are more comfortable doing business with you or paying into your bank account with a registered business name.
How Do I Get My Business Name Registered?
==> Prepare two other unique alternatives to the name you want to register.
NB: Names must not contain words like ‘national’, ‘government’, ‘state’ and other official terms. If you include keywords like ‘consulting’, you may be asked to submit license for professional qualification. Also note that your business name must not be similar to any previously registered name.
==> Inform the CAC official you want to register your business name. You will be asked to pay for the ‘Availability Check And Reservation’ These cost five hundred Naira. You can download the form here.
==> Fill and submit the form. You will be asked to come back in 1-2 weeks’ time to know the status of the names you submitted.
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==> if any of your name is approved, you will pay four thousand Naira, if not, you will be instructed to pay another #500 for available check. Click here to check the summary of fees.
==> After paying this fee, you will be given a registration form. these are the requirements of the form: approved business name, business address, name(s) of business owner(s), address of business owner(s), two passport photographs of business owner(s), nature of business (you can get a list of all categories of business at the CAC office)
==> After filling the form, submit it with the #4,000 receipt. You will be told to come for your certificate in two to four weeks’ time.
==> Immediately you collect your CERTIFICATE OF BUSINESS NAME REGISTRATION, you can conveniently say you are running a legitimate business.
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