Make your business legal has numerous benefits, and right now many business owners are looking for how they can register their business can with the appropriate body to make their dealings more professional. Knowing how to register a Business Name in Nigeria is good for every entrepreneurs.
Many undergo difficulty during the process of registration and left some into frustration I was once in this shoe, I wanted to register my business, and then I proceeded to the CAC office to make enquire on how I can get it done.
I was told I could only get it done via the CAC official website, I knew I could get it done through cooperate affair commission but the website look difficult to navigate, before I could figure it out it takes some time.
You can have your business name registered in two ways, first give it to the CAC officer to help or do it yourself through their website, you can spend a lot higher when the CAC official helps you but you get the name registered ASAP without undergoing any difficulty.
You can do it yourself, it might be difficult a little bit but in the end, you will have your desired result, here I will be showing you how you can get it done yourself.
Visit the official website of CAC, first, you need to register an account on the portal with your email address, after successful registration, you can proceed to the steps involved in getting your business registered and make sure all provided information is correct.
First, you need to choose a business name for your new brand to have full ownership and to secure your brand identity you need a unique name you want to register.
There are other factors to be considered like the business structure, the geographical location in which the business will operate but first let dive into what business name registration could do for you.
What is a Business Name?
A business name is a legal identity for your business, the can be your bearing name or anything that represent and speak your brand objective, this must be unique and able to communicate what your brand is all about to the general public.
It is very important to go for a business name that is catchy because it is going to be opened to every member of the public, anytime you want to pick s name for your business picks the right one.
The business name registered will represent all the official documents (correspondence), things like letters and invoices.
Entrepreneurs can easily register their business name in Nigeria because it is straightforward and lesser in cost.
Corporate Affairs Commission (CAC) is the only body that can register your business name in Nigeria; the responsibility to register a business name in Nigeria is placed on them by the law. The entity was established by the Companies and Allied Matters Act in the year 1990 to regulate the formation and management of companies in Nigeria.
Many years ago, registering a business name has not been easy but now the process of getting it done has been made easy through the CAC website, meaning from the comfort of your home you can have your business registered.
Why You Need to Register Your Business in Nigeria
There is nothing to compare with having your business registered as it comes with a lot of benefits and you can only enjoy these benefits when you have a business name registered with CAC.
Some of the benefits of registering your business name are:
- It helps you protect your legal liability
- You can have a corporate account for your business with the name registered with any bank.
- Customers will trust your brand more.
- It enables you to apply for loans and grants with your business name
- It can attract investors to your business.
- It helps you build your business structure
- The business takes responsibility on its own, this prevents you from being held responsible for any civil wrong that comes from the business
- It gives you the chance to easily apply for a visa for business meetings, workshop and conferences.
What Are the Requirements to Register a Business in Nigeria?
There’s has been some new development on the principal laws guiding business and company formation in Nigeria after the 2020 amendment of the Company Allied and Matters Act (CAMA) by the CAC.
The new requirements to register a business in Nigeria are:
When there are not adults involved with shares, the prospective applicant must be above 18 years.
There must be two proposed names for the registration, if one is not available, the second name could be used.
A name registered by another company cannot be reused, including names related to any government agency.
You must provide a means of identification.
When applying for your business name the objective of your business must be clearly stated.
The type of the business must be indicated, let them know if it is a private limited company, a private unlimited company or a company limited by guarantee.
You must have a physical and verifiable address.
The share owned by each partner must be clearly stated.
Cost of Registering a Business In Nigeria
Name reservation for prospective business owners is now
Registration of a company without a share capital costs
The registration fee of a private company with a share capital less than N1m is just
The registration fee 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.
Private company of above
N 500m share capital costs N7, 500 for every 1m shares of the company and a Public company registration for the first N1m share capital or fewer costs N20, 000
How To Register A Business Name In Nigeria
The three steps involved to have your business registered in Nigeria with the Corporate Affairs Commission is right here, which are:
1. Account Creation
2. Name Reservations
3. Name Registration
Let dive into the explanation.
1. Account Creation
Creating an account on the CAC registration Portal, have mentioned this earlier, to start your business name registration you need to register an account with the corporate affairs commission CAC to have access to the registration page.
The creation of the account is completely free and here is who to go about.
Log on to pre.cac.gov.ng.
At the top right corner of your screen, click on the registration button.
Fill in your details; remember you must have either a National Identity card or any other form of identification to have a successful account created.
Then click register.
A verification link will be sent to your email
Verify your new account registration using the link sent to your email.
After the verification, you now have an account with CAC, you can then proceed to you can proceed to register your business.
2. Name Reservation
Business name reservation in Nigeria means to check if a name chosen by you is available to be registered.
This is where the second phase comes to play, you need to do a ‘name availability search on the CAC portal to register your business name in Nigeria.
The aim is to check if the name you intend to register has been used or still available to be used.
Here is how to have a name availability check:
Go to your dashboard with your username and password
Click on new name reservation
Choose the classification of your business under name and type
Click Save and Continue.
Go to the objective
Fill in new incorporation as a reason for availability search, under the objective section
Ensure all field marked red are filled.
Click Save to preview.
Check if there are errors; correct those mistakes to make it error-free.
To reserve a name you need to pay a sum, which is
N 500 the money is for CAC-business name reservation
Click pay by Remita to receipt payment. Many payment options are on the Remita page, choose the one most appropriate to you and pay.
Your name reservation will be pending on your dashboard, after the successful payment, and you have a maximum of 60 days after application to reserve the proposed business name, after 60 days the application will be cancelled.
3. Name Registration
Company registration with CAC in Nigeria
In step 2 you were able to reserve your business name successfully, now it is time to proceed to register the business name.
Your business name reserved approval status can be viewed when you log in to your dashboard.
Proceed with the successful approved reserved name
Click on it to show your approval history.
To start your business registration
Click on start registration beside your approved name
Enter your correct business details under the business details
Then click on Save and Continue with the registration.
Check the particulars of proprietors and enter the particulars of each proprietor
Click Save and Continue your registration.
Under the nature of business
Fill in the right details and description
Click Save and Continue.
Upload all required documents
Click Save and preview your entries.
Review all the information carefully to avoid registering the wrong information.
Make payment for your registration by clicking on receipt payment
After payment, you will be automatically redirected to your dashboard to download the receipt of your payment.
Download receipt of payment.
If your registration is successful, your certificate will be automatically redirected to your registration panel.
Download your certificate and now you have successfully incorporated your business.
Congratulations your business is now legal!
You can now see it is very simple, it is just three steps to have your business incorporated in Nigeria.