A lot of business owners have been looking for how to register a business name in Nigeria and haven’t found a comprehensive guide on how to go about registering their business names.
From statistics, how to register a business name in Nigeria is one of the most discussed topics on many Facebook, WhatsApp, and Nairaland forums and yet no satisfactory guide has been given in any of these platforms.
Search no more as we have compiled an exclusive step-by-step guide on how to register your business name in Nigeria even from the comfort of your home.
It might also interest you to know that registering a business name in Nigeria is no longer as stressful as before. It can now be done online by just filling the registration form and uploading the necessary documents on the Corporate Affairs Commission (CAC) portal.
As a business owner or even before starting a business, it is necessary to get your business registered with the Corporate Affairs Commission as the impact of the Registration on a business cannot be overemphasized on both small, medium, and large businesses.
This article covers in detail:
- Brief History and Functions Of The Corporate Affairs Commission
- Why You Should Register Your Business Name In Nigeria
- Benefits Of Registering Your Business Name With The Corporate Affairs Commission In Nigeria 2021.
- A Comprehensive List Of Documents| Requirements To Upload For Corporate Affairs Commission (CAC) Business Name Registration In Their Online Registration Portal.
- A Step By Guide on How To Register a Business Name in Nigeria 2021.
- How Much It Cost’s To Register A Business Name In Nigeria
BRIEF HISTORY AND FUNCTIONS OF THE NIGERIAN CORPORATE AFFAIRS COMMISSION
The Nigerian Corporate Affairs Commission (CAC) was founded in 1990.
The CAC establishment, structure and funding is now being governed by the Companies and Allied Matters Act 2020.
The Corporate Affairs Commission is an autonomous body charged with the responsibility to regulate the formation and management of companies in Nigeria.
The Functions Of The Nigerian Corporate Affairs Commission
- Below are the functions of the Nigerian Cooperate Affairs Commission:
- Registration of Business Name
- Issuance of Certified True Copies of filed documents
- Registration of share capital increases, mortgages, etc.
- Processing the statutory filings of Annual Returns, increase, changes in the memo and articles, addresses,
- Registration of Incorporated Trustees
- Same Day Incorporation Services under which companies are registered within one day
- Conducting searches, etc.
WHY YOU SHOULD REGISTER YOUR BUSINESS NAME IN NIGERIA
Not registering your business name is like attending a school without your record /file. By so doing, any benefit or discount given to bonified students of the institution would elude you because you are not a student of the school and therefore you do not exist in their register.
This also applies to not having your business name with the Nigerian Corporate Affairs Commission.
Credibility- Before a big firm strikes a business deal with you, they would have to, first of all, do thorough research about your brand and one of the first researches they would conduct is to check if your business name is registered with the Corporate Affairs Commission. In a situation where it’s not registered, the company would suspect foul play from your end and they would be left with no option than to cut off the deal and you know how devastating that could be…… don’t you?.
BENEFITS OF REGISTERING A BUSINESS NAME IN NIGERIA
Registration of business name with the Corporate Affairs Commission comes with a lot of benefits which includes :
Access to Loans and Grants: From time to time, the government and other Non Governmental agencies provide loans and grants for small, medium, and large businesses in Nigeria, and most times, you’re required to upload your business Registration document as proof that you’re running a legally registered Business in the Country.
Opening a Corporate Bank Account: Having a Corporate Bank Account helps to increase customers’ confidence in your company.
Also, most customers do not feel comfortable paying money into a personal bank account, they rather feel more secure paying into a Corporate Bank account.
Improves Customers Confidence: A potential customer feels confident enough that he or she is in safe hands the moment he or she discovers that your business is registered.
The customer, therefore, feels relax and transact with you without any fear of scamming him.
Attracts Investors– Before investors decide to invest in your company, they first conduct general scrutiny on the company to ensure that they are about to invest their money in a legally registered, reputable, and profitable business.
Easy Access to Visa: With a registered Business document, it is easier to obtain any country’s visa and travel to any part of the world for business purposes.
Increases Your Business Reputation: There’s a special feeling that comes with transacting with a registered company or firm.
Registering Your Business Protects Your Brand Name: The surest way to protect your business name from others answering the same name is to register your business with the Cooperate Affairs Commission.
You have every right to take legal actions against anybody that takes up your business name without permission so far as your business name is registered with the CAC.
Business Continuity: So far as your business is registered, the Business will continue to run even if the owner of the business is dead or if the owner is no longer capable of handling the Business and possibly wills it to his or her heir.
Access To Government Contracts: Having a registered Business with the Cooperate Affairs Commission is the first criteria for standing a chance in winning a government contract.
You know how juicy government contracts could be and I know you wouldn’t like to miss out in any opportunity when it arises. The best way to be on the better side of winning the contract Is to first Register your company name which costs a token and less rigorous process since the invention of the online registration portal which the only thing you have to do is to log on to the CAC website and fill in the business registration form and upload the necessary documents.
REQUIREMENTS | DOCUMENTS TO UPLOAD DURING THE CORPORATE AFFAIRS COMMISSION [CAC] BUSINESS NAME REGISTRATION IN THEIR ONLINE REGISTRATION PORTAL.
Business name registration in Nigeria is no longer as stressful like before since the start of the online registration portal in the CAC online portal.
Below are the requirements for registering a business name with the CAC in Nigeria:
- You must possess a valid means of identification like a National ID, driver’s license, Voters card, or international passport.
- The business must have a verifiable physical address
- You must be at least 18 years of age. Individuals who are not up to 18 years of age are permitted to own shares in a company irrespective of that there are not up to the required minimum age.
- Registration of names related to government establishments or names already in use by other companies is not permitted for registration.
- Your business objectives must be well and clearly stated in the document.
- The type of business you intend to register must be clearly stated and indicated eg bit a private limited company, a private unlimited company, or a company limited by guarantee.
If you have partners, the share capital of each shareholder must be stated.
HOW TO REGISTER A BUSINESS NAME IN NIGERIA 2021 | A STEP BY STEP GUIDE
As stated earlier, you can now comfortably register your business name with the CAC via their online website by just filling the registration form, uploading the required documents, and paying the registration fee all online which saves you the stress of traveling miles to a physical Office of the CAC for the registration.
Let’s have a look at the necessary steps and procedures on how to register your business name in Nigeria:
GET A NAME FOR YOUR BUSINESS
You can’t register a business that has no name you know…
First things first, get a good name for your business.
Firstly, the name of your business must represent your business description. If you are into fashion, you should go for a name that would reflect the fashion brand.
More so, your business name must be unique, be as short as possible, and be easier to remember. The role of a unique, short, and easy to remember the name in a business can never be overemphasized.
CHECK IF THE NAME IS STILL AVAILABLE
It’s very much possible for someone somewhere to have thought of that exact name you wish to give your business and possibly have registered it.
So, the second step to take after you have gotten a business name is to check if the name is already in existence or is free.
It’s always advised to have two names in mind should in case one of the names is taken, then you go for the next one.
PROCEED TO CREATE AN ACCOUNT
After you must have completed the survey steps, the next step to take is to proceed to the CAC official website at www.cac.gov.ng
After you have accessed the CAC website, a portal will open where you will input your personal details.
Make sure you have an active and working email address for you would be sent a confirmation mail through which you would proceed to complete the registration.
PROCEED TO MAKE PAYMENT FOR A FILING FEE
Once you make a payment for a filing fee, a payment receipt would be sent to you.
The payment can be made directly from the website portal or through your bank account.
NOTE: The fee varies depending on the type of business you wish to register.
The fee for a partnership business wouldn’t be the same as that of a limited liability company and the rest.
PREPARE AND GET YOUR DOCUMENTS READY FOR UPLOAD
Your documents must be readily available and well prepared for uploading.
A signed and scanned copy of your documents is required for the business name registration with the CAC.
REGISTER YOUR BUSINESS NAME
After you must have completed the survey steps, you would now proceed to the registration portal on the Company registration icon
Religiously follow the following procedures to register your business name in the CAC online portal:
- Proceed to services.cac.gov.ng login to log in to your CAC account.
2.You would automatically land on your account, then click Company Registration.
- You would see a section that says “You have no company registration. Register a company with your availability code ” and click the green link”.
- Input your availability code in the form under New Company Registration and press Enter on your keyboard or wait for a few seconds for the result to load.
- The result will contain your approved business name and other personal information. Go through it and update your contact information.
RECEIVE YOUR CERTIFICATE
After you have registered your company| business name, you’ll have to wait for a couple of days for the commission to process your business name registration.
In that case, log in to your CAC account dashboard once in a while to check your registration status.
The status is categorized from Not Submitted, Submitted, Pending Approval to Approved.
Once your application is successful, your status will read approved.
You will now have to wait patiently for a mail from the Corporate Affairs Commission containing your certificate.
You then proceed to the nearby CAC office for the collection of your certificate.
The physical Office where you would collect your document would be selected by you during the course of the registration.
HOW MUCH DOES IT COST TO REGISTER A BUSINESS NAME IN NIGERIA?
It is important you know that the Registration of a business name with the Corporate Affairs Commission in Nigeria is not free.
A fee is attached for the purchase of the form and the registration proper.
Registration of a business name varies depending on the type of business you wish to register.
The types of business names and their corresponding price tags are as follows:
- Private company registration with an authorized share capital of N1m or less, costs N10,000
- Private company registration with a share capital of more than N1m and up to N500m costs N5,000 for every 1m shares of the company.
- Private company registration above N500m authorized share capital costs N7,500 for every 1million shares of the company.
- Registration of Public company registration for the first 1m share capital or fewer costs N20,000
- Registration of a company not having a share capital costs N20,000.
How to register a business name in Nigeria with the Corporate Affairs Commission (CAC) is relatively easy and stress-free as you can sit at the comfort of your home and get your business name registered through the CAC official website at www.cac.gov.ng by simply filling the Registration form and uploading the necessary documents for the registration.
As clearly stated in this article, having your business registered with the CAC comes with loads of benefits that span customers’ trust in your business, Access to government loans, Business credibility, and so on.
If you religiously follow the outlined steps above, you would never go wrong or experience any hassle during your registration.