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BUSINESS NAME REGISTRATION EXPLAINED
A business name is registered, owned, and operated by an individual(s) only. There is no separate legal entity like the private company and such an individual is legally liable for all losses accrued to the business. A business name also known as a trading name/enterprise is registered under Part B of the Companies and Allied Matters Act (CAMA). It can remain unregistered if the owner(s) use their first name(s), surname(s) and the initials of first name(s) or under full name(s). A business name can be registered as a Sole Proprietorship or as Partnership.
ADVANTAGES OF BUSINESS NAME OVER LIMITED LIABILITY COMPANY IN NIGERIA
1. A business name can be converted to a limited liability company, in the event the business expands rapidly.
2. Business name requires fewer formalities
3. Less capital is required to run the business
4. It is easier to register
5. The business can be formed by one person or more
6. Profits or losses are borne by the sole proprietor in the case of a sole proprietorship or by partners in the case of a partnership
7. There business owner only pays personal income tax in his/her state of residence.
8. Decision making is easier with Business name.
9. Level of ownership, investment, shareholding and interest are not publicly recorded
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