Do you own a business in Nigeria or are you considering opening one. Well one of the legal requirements of beginning a business line in Nigeria is to register your business with the Corporate Affairs Commission. Contrary to general perspective, registering a business name in Nigeria is very easy; all it requires is a little dedication and hard work.
Legally, there are about 5 Categories of Business registration under the Corporate Affairs Commission such as:
• Private Limited Company
• Public Limited Company (Plc)
• Company limited by Gaulle (LTD/GtE)
• Unlimited Company
• Incorporated Trustee
For small and medium business owners that abound in Nigeria, the first one is off great importance and will be discussed in details within this article. The First one is further divided into two main sub categories- Partnership and Sole proprietorships.
These types of business enterprise do not require the services of a Lawyer, therefore adding to the simplicity of registering these sorts of business enterprise.
Benefits of registering your business name
There are many reasons as to why registering one’s business is very essential;
• It Serves and protects the business from anyone who may wait to take it out of your hands by taking legal action against you.
• It depicts seriousness and gives the air of authenticity to your business
• A corporate bank account can mainly be obtained for a registered business and off course; this is a great advantage to your business givng unrestricted transactions incurred by corporate accounts.
Practical Steps to registering your business
Step 1: Search for a Business name and book it
The CAC office now offers a great advantage past ways of getting a business name, you can now log on to the CAC online platform and search to see if your potential business name is available, if it’s not then proceed and reserve the name. To reserve a business name you will have to pay the sum of N5001
• Note: Your choice of business name must not contain generic words such as “Chamber of Commerce”, “Federal”, “National”, “Regional”, “State”, “Government”, “Municipal” or “Chartered”, “Co‐operative” or the words “Building Society”; or “Group” or “Holding” as well as names that may contradict with existing trademarks.
Step 2: Proceed to the CAC office to process your applications
If your name is not approved at the office, you will have to pick another reservation form. Once completed and accepted, pick the application forms, it will cost you N2501. Once you have completed the application forms, submit it alongside two passport photographs if it is a partnership business you wish to open or s single passport photograph, if it’s a sole proprietorship arrangement.
To complete your registration, you will be required to pay the sum of N10,0001
Step 3: Waiting Period
You will have to wait for a period of 2 to 3 weeks to become a full owner of your business venture. Once done you can now proceed to setting up your business venture.
Registering a business name is very important, why not proceed to CAC and get your business registered; to enjoy all the loads of benefits that comes with taking that step. Also it is an added advantage as it gives the real authenticity of a law abiding citizen in Nigeria.