Ultimate Guide: How to Register a Business Name in Nigeria – 2024
Introduction
Starting a business in Nigeria comes with various legal requirements, one of which is registering a business name. The Corporate Affairs Commission (CAC) is the government agency responsible for business registrations in Nigeria. Many entrepreneurs and small business owners often wonder about the process, cost, and legal implications of business name registration.
This article provides a detailed, step-by-step guide on how to register a business name in Nigeria in 2024, the benefits of registration, required documents, and common mistakes to avoid.
What is a Business Name?
A business name is the name under which an individual or partnership operates a business. It differs from a company (limited liability company) because it is not a separate legal entity. Instead, it is an extension of the individual or group running the business.
For example, if John Doe wants to start a bakery, he could register “John’s Bakery” as a business name instead of incorporating a company like John’s Bakery Ltd.
Why You Should Register a Business Name in Nigeria
Registering a business name in Nigeria is not just a legal requirement but also provides several benefits:
Legal Recognition: A registered business name makes your business legitimate in the eyes of the law.
Business Banking: Most banks require business name registration before opening a business account.
Brand Protection: Once registered, no other business can use your name in Nigeria.
Business Growth: Registered businesses have access to government loans, grants, and partnerships.
Increased Trust: Customers and investors take registered businesses more seriously.
4. Legal Framework for Business Name Registration in Nigeria
The registration of business names in Nigeria is governed by the Companies and Allied Matters Act (CAMA) 2020, which empowers the Corporate Affairs Commission (CAC) to regulate business registrations. The CAC provides a straightforward online registration system that allows entrepreneurs to register their business names from anywhere in Nigeria.
Under CAMA 2020, businesses that are not incorporated as companies but are operated by individuals or partnerships are required to register their names with the CAC.
PROCEDURE FOR REGISTRATION OF BUSINESS NAME IN NIGERIA
Step1: Search and reserve a name (Form CAC 1)
The CAC now has an online portal, which individuals can use to search for and reserve a business name or you can walk into any of the CAC offices and obtain the Reservation of name form. This will let you know if your desired business name is available.
Step 2: Business Name Application (form – CAC/BN/1)
In this document, you will list the nature of the business and the address of the business. You will also write down the owners of the business name, Proprietors of a Business Name. Where the owner is a minor, the CAC asks for an attestation from a magistrate, legal practitioner, or a police officer of a certain rank. You may either register the business as a sole practitioner or as a partnership with another individual. You will have to complete the form as appropriate with two passport-sized photographs of each applicant attached to the form (if you are starting business as a partnership).
A company can also own a Business Name. In this case, the CAC asks for an attestation from the company director or company secretary. Owners of a business name can be a mix of individuals and companies.
Note that Documents to be uploaded for Business Name Registration are as follows:
Business Name Registration Form (Form BN1)
Proficiency Certificate (Where Applicable)
Residence Permit (Where Applicable)
Means of Identification
Payment Receipt (RRR)
Step 3: Filing
Once you’ve completed the Business Name Application, it costs 10,000 naira to file at the Corporate Affairs Commission. No stamp duty is required.
After paying the business registration fee, you will be presented with affidavit/attestation form. Thereafter, you are expected to proceed to any magistrate court in your vicinity or location for endorsement by the court magistrate. During this process, you will be required to pay N250 only as fees to the court’s involvements.
Registering a business name requires having a valid, nationally recognized form of identification such as a: passport, driver’s license, permanent voter’s card, or a national ID card. These can sometimes take months to obtain. So if you’re in a hurry, they may accept a declaration of age. After getting the certification, you can go ahead and start your business.
ONLINE PROCEDURE FOR REGISTRATION OF BUSINESS NAME
Step 1: Account Creation
The first thing you need to do to create your account; go to the Corporate Affairs Commission’s website.
CAC URL, while on the website, clicks on “Start”. Fill the form as provided.
When you are done filling out the form click “Register” to submit your form.
Login to your email for a verification email that would be sent.
Click the link in your link to complete your registration that would be all. You’re done with your account creation.
The next to do is login and continue with name reservation.
Step 2: Name Reservation
Log on to your account. CAC login.
Once logged in, click “here” to proceed with your name reservation.
Step 3: Business Name Registration
Having reserved your business name, you need to get the availability code to proceed with your registration. Here’s where you enter the availability code. After entering the available code, a form is going to open up for you to enter your details. Most of the details would already be there from your reservation. Enter “former nationality” and “former name” if any and then “Start Registration.” You’re then taken to stage 2 of the registration process. Enter the necessary fields, then save and proceed. In stage 3, please do not enter anything if you’re the sole proprietor. If you own the business with your spouse, another corporate entity or your child as the case may be, you can add “Individual, Corporate or Minor Proprietor” respectively. Otherwise, just leave it like that and click “Continue.” thereafter.
Stage 4 however, is to “Add Nature of Business.” Choose the category of your business and add the services you render or the products you provide. You can add more “Nature of Business” or just click “Continue.”
The next stage is to select where you want to go and pick up your certificate when ready. Here, do not select any additional certified true copies. This will increase your bill at checkout.
Stage 5 takes you to preview what you’ve entered. Select how you want to pay. Once you’re done with your payment, print out your receipt. Log on to your account or click “Dashboard” if you’re logged in already. Then click on “Pending Approval.”
On the next page, click on your business name. You’ll be taken to a page you’re going to see “Documents” and “Payment
History.” Click on “Payment History.”
The next page is going to allow you print the receipt.
Step 4: Documents Upload
Click “Documents” you’ll be taken to where to download and print Application Form for Business Name (CAC/BN/1).
The next thing to do is to print, sign the form and affix your passport photograph.
Common Mistakes to Avoid When Registering a Business Name
Choosing a name that is already taken
Providing incorrect personal details
Not understanding the nature of the business category
Not keeping copies of registration documents
Legal Implications of Not Registering a Business Name
Operating an unregistered business is illegal
You may be sued for using another business’s registered name
You cannot open a corporate bank account
You miss out on government grants and business opportunities.
Conclusion
Registering a business name in Nigeria is an essential step for any entrepreneur looking to establish a legal and credible business. The process is straightforward, cost-effective, and provides numerous benefits, including access to business loans, brand protection, and legal recognition.
If you are looking to register your business name hassle-free, you may consult a legal expert for guidance.
For legal assistance, visit CHAMAN Law Firm
WRITTEN BY:
CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com / info@chamanlawfirm.com