When starting a business, a lot of entrepreneurs are usually confused as to whether to register their business with the Corporate Affairs Commission as a Business Name or a Company. This article focuses on registration of Business Name in Nigeria. What you need to know and how to go about this.
A Business Name is the name and style with which you trade. The owners of the business are responsible for the acts and liabilities of the business. However, when a business is registered as a company, the company and the owners have different legal rights and responsibilities.
What are the differences between a business name and a company? Find out!
Below are some of the reasons for a registration of Business Name:
Registration of Business Name or a Registered business name be used to carry on business in the form of a Sole Proprietorship or Partnership. Let’s take a look at the different forms;
It is the most common form of business in Nigeria. It simply means a one-man business organization. It is a ME, MYSELF and I model. It is the type of entity that is fully owned and managed by one natural person known as the sole proprietor.
This is a type of business organization in which two or more individual’s pool money, skills, and other resources, and share profit and loss in accordance with the terms of the partnership agreement. In absence of such agreement, the partners share profit and risks equally. This model can be be carried out through registration of Business Name.
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HOW TO REGISTER AN ENTERPRISE IN NIGERIA
After deciding what form of business name you would like to register, the following are details to be used on your CAC Portal.
Two businesses cannot carry on business with the same name. The process of confirming that your proposed name is not being used is called a public search and can easily be done on the CAC official website. This is the first step in the registration of Business Name.
After the public search, you must apply for a confirmation and approval by CAC that the name is not being used. This is called availability check and reservation of name, you are expected to submit two proposed names to the CAC, and make the required payment. If approved, go ahead with registration.
The Statutory form for registration of Business Name requires certain particulars to be provided, accompanied by a number of documents. They are as follows: -
Once everything looks good, go ahead and make payment, printout the documentation, attach relevant passport photographs and sign.
The Application form for the registration of Business Name and other relevant documents must be uploaded. The CAC will review the documentation and if all is in order, you will get a notification that the application has been approved, after which your Business Certificate will be ready for pick up.
The following documents would be given back to the proprietors by the CAC:
If you are thinking of registering a business name, we are at your service. We are affordable and our services are efficient. Reach out to us on Email: firstname.lastname@example.org or Phone: 09018081296.
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