In the past, business name registration in Nigeria was quite cumbersome. It would take several days and a lot of paperwork to sort the business registration sorted.
As an investor or entrepreneur, registering your business 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. You can refer to this post to find the best investment in Nigeria.
In Nigeria, the institution responsible for business registration is the Corporate and Affairs Commission (CAC). The Corporate Affairs Commission (CAC) 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.
In this post, we will be giving you a step by step guide on how to register a business name in Nigeria through the Corporate Affairs Commission (CAC).
How to Register a Business Name in Nigeria
Below are the required steps to take in registering a business name in Nigeria:
- Choose a business name
- Submit your chosen business name to the CAC for name reservation
- Register your business name
- Pay for filing fee
- Prepare your documents for upload
- Submit the original copies of your documents
Step 1: Choose a Business Name
Choosing a business name can be quite tasking sometimes. Your business name needs to be identified with a brand name. It is important that you 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.
You can also use a platform like Namelix, a digital tool to help with finding a name that fits your business.
Step 2: Submit Your Chosen Business Name To The CAC For Name Reservation
In the past, business name reservation at the CAC took days before it 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.
Step 3: Register Your Business Name
Once you wrap up with the name reservation, you can then proceed to the registration of your business name proper. Using the online registration portal, you will have to complete a pre-registration form (CAC-BNo1).
Step 4: Pay For Filing Fee
Upon payment of the filing fee, you will receive a receipt of payment. Note, you can make Payment 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.
How Much Does it Cost to Register a Business Name in Nigeria?
- Registration of a private company with an authorized share capital of N1m or less, costs N10,000
- Registration of private company with 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 1m shares of the company.
- Public company registration for the first 1m share capital or fewer costs N20,000
- Registration of company not having a share capital costs N20,000
Step 5: 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 pre-registration substantiating documents include
- Application form
- Filing fee receipt
- Means of Identification for the proprietors of the business.
Step 6: Submit the Original Copies of Your Documents
You will have to submit the original copies of documents uploaded in step 5 to the CAC office. You will do this in exchange for your certificate and the Certified True Copies of the documents.
Hopefully at this point, you are fully equipped with the knowledge on how to register a business name in Nigeria.
Please note that you do not need the services of a legal practitioner, chartered secretaries, or any other third party to register your business name.
The Corporate Affairs Commission (CAC) has simplified the business name registration process to encourage participation from prospective investors and entrepreneurs. Registering your business name makes you eligible to get financial assistance from the Bank of Industry.
In addition to getting a business name, endeavor to get your unique tax identification number (TIN), as every business in Nigeria must pay tax. This will help you avoid any hassles while trying to raise capital for your business.
Now that you have your business name registration under the belt, you will need to get business insurance to help keep your business afloat even in treacherous times.