One of the conditions for conducting business in Nigeria under a name other than your own name is the registration of your firm with the Corporate Affairs Commission (CAC). The Corporate Affairs Commission (CAC) is the organization in charge of regulating company registration and management in Nigeria. In this article, I’ll go through the processes required in registering a business name in Nigeria.
Under the Companies and Allied Matters Act of 1990, registering a business name gives the owner or partners the right to run their business under a Business Name. It is important to note that registering a business name does not automatically make the business a legal entity, it only protects the name of the business from being used by another person. To make the business a legal entity, the business must be registered as a limited liability company or an incorporated trustee, depending on the type of business.
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Here are Steps on How to Register a Business Name in Nigeria
You can hire a professional to help you register your Business Name, or you can do it yourself if you have some time to spare. If you have a Company Limited by Guarantee (LTD/GTE), Public Liability Company (PLC), Incorporated Trustees, etc., you need professional advice.
If you decide to do it yourself, here are the steps you need to take:
Step 1: Choose a business name The official fee to register a business name in Nigeria with the CAC is N10,000. But if the person who wants to be registered hires an accredited agent, the agent will also charge a professional fee for the services to be done.
The first step in registering a business name is to choose a unique name that is not already in use by another business. It is important to note that the business name you choose should not be similar or identical to an existing business name, as this can lead to confusion and legal issues. You can use the CAC’s online business name search tool to check if the name you have chosen is available.
Read Also: How to Verify Online if a Company is Registered in Nigeria
Step 2: Fill out the Business Name Registration Form
Once you have chosen a name, you will need to fill out the business name registration form, which can be obtained from the CAC website or at any CAC office. The form will require you to provide information about the business, including the name, nature of the business, and contact information for the proprietor. You will also be required to provide a detailed description of the business activities, as well as the names and addresses of the proprietors.
Step 3: Submit the form and pay the registration fee
After filling out the form, you will need to submit it along with the required documents and pay the registration fee at any CAC office close to you. The registration fee varies depending on the type of business you are registering. It is important to ensure that all the necessary documents are submitted along with the registration form, as incomplete applications may be rejected.
CAC Registration Fees
The official fee to register a business name in Nigeria with the CAC is N10,000. But if the person who wants to be registered hires an accredited agent, the agent will also charge a professional fee for the services to be done.
Step 4: Wait for approval
After submitting the form and paying the registration fee, the CAC will review your application. If the application is approved, the CAC will issue a certificate of registration and a unique registration number. The process of registration can take up to 14 working days, depending on the workload of the CAC at the time of application.
Step 5: Publish the business name
After obtaining the certificate of registration, you are required to publish the business name in at least one national newspaper, this is to give notice to the public that the business name has been registered. This is an important step as it allows the public to know that the business name, they are dealing with is a registered one.
In conclusion, registering a business name in Nigeria is a straightforward process that can be completed by following these steps. It is important to choose a unique name, ensure that all the required information and documents are submitted, and pay the registration fee. Keep in mind that the business name registration is valid for only two years, and it will need to be renewed before it expires. Additionally, it is important to note that registering a business name does not make the business a legal entity, but it does protect the name of the business from being used by another person.