As an entrepreneur, business name registration is one of the essential requirements for starting a business.
An investor will only be interested in a company that is duly registered. On the other hand, for an entrepreneur to make the business eligible for specific benefits either from an investor or government, it has to be registered as a company.
In Nigeria, the institution responsible for business registration is the Corporate and Affairs Commission (CAC). This is an autonomous body established in 1990 under the Companies and Allied Matters Act. They are charged with the responsibility of regulation and management of companies in Nigeria.
WHY YOU SHOULD REGISTER YOUR BUSINESS WITH CAC
1. Registering your business with CAC gives your business legal backing.
2. It makes your business recognized and
identified by its registered name.
3. When you register your business, it gives you the exclusive right to your business name and nobody can use the name again… Where a person is discovered to be using such a name, you can sue them for misrepresentation and claim damages.
4. It gives you the edge when applying for contracts with corporate organizations or even government grants/loans.
5. It makes people at ease to do business with you.
- COST OF REGISTERING A BUSINESS IN NIGERIA
1. Registration of a private company with an authorized share capital of N1m or less, costs N10,000.
2. Registration of a private company with a share capital of more than N1m and up to N500m costs N5,000 for every 1m shares of the company.
3. Private company registration above N500m authorized share capital costs N7,500 for every 1m shares of the company.
4. Public company registration for the first 1m share capital or fewer costs N20,000
5. Registration of a company not having a share capital costs N20,000.
PROCESSES INVOLVED IN REGISTERING A BUSINESS
- Choose a business name and check for the availability.
- Complete your pre-registration form to register a business name.
- Pay for a filing fee.
- Prepare your documents for upload
- Submit the original copies of your documents.
- CHOOSE A BUSINESS NAME AND CHECK FOR AVAILABILITY
Choosing a business name can be quite tasking sometimes. Your business name needs to be identified with a brand name. You should pick a name that is relevant to your business.
You should do a quick search on the internet on the names you choose and have up to three backup plans. This is to ensure you have at least chosen the names that are not in use to the best of your knowledge.
- COMPLETE YOUR PRE-REGISTRATION FORM TO REGISTER A BUSINESS NAME
In the past, business name reservations at the CAC took days before they came back with a result. Today, it only takes the same day if you submit your request before 5 pm and it costs just NGN500.
Once you wrap up with the name reservation, you can then proceed to the registration of your business name properly. Using the online registration portal, you will have to complete a pre-registration form (CAC-BNo1).
- PAY FOR A FILING FEE
Upon payment of the filing fee, you will receive a receipt of payment. Note, you can make payments directly from the website portal or straight to the bank. The cost of business name registration depends on the type of company you are trying to register with.
- PREPARE YOUR DOCUMENTS FOR UPLOAD
You will need to prepare a signed copy of the pre-registration documents and upload a scanned copy to the website for processing. The following are the requirements for registering a business name.
- Application form
- Filing fee receipt
- Means of Identification for the proprietors of the business.
- SUBMIT THE ORIGINAL COPIES OF YOUR DOCUMENTS
You will have to submit the original signed copies of documents uploaded in step 4 to the CAC office. You will do this in exchange for your certificate and the Certified True Copies of the documents.