04 May How to Register a Business Name in Nigeria in 2021 (Explained)
How to register a business name is one of the most asked questions on Google by businesses owners in Nigeria.
After choosing a business name for your new brand, you will want to register it to have full ownership and secure your brand identity.
Seeking how to register a business name in Nigeria will take into consideration several factors. Such as the business structure as well as the geographical location in which the business will operate.
- 1 What is a Business Name?
- 2 Why Should I Register My Business Name in Nigeria
- 3 3 Quick Steps To Register a Business Name in Nigeria
- 4 Requirements to Register a Business in Nigeria
- 5 How Much Does it Take to Register a Business Name in Nigeria?
- 6 Conclusion
What is a Business Name?
A business name is your business legal identity. It can be your own personal name, nickname or something entirely different and unique to you.
Your business name will be public, so it’s important that you pick the right one for you.
A business name is very important for official correspondence, such as letters and invoices.
Business name registration in Nigeria is fairly straightforward, and entrepreneurs or investors can register their business name in Nigeria pretty easily.
This registration is done by the Corporate Affairs Commission (CAC) which was established by the Companies and Allied Matters Act in the year 1990 to regulate the formation and management of companies in Nigeria.
Also, the CAC has the responsibility to register a business name in Nigeria.
Unlike before private individuals can now register their business at the comfort of their homes.
Why Should I Register My Business Name in Nigeria
As a business in Nigeria, there are many benefits for registering your business name with CAC.
- To protect your legal liability
- Ability to open a corporate account for your business.
- You have a greater chance of attracting investors to your business.
- It builds trust and credibility with your existing and potential customers.
- Being able to apply for loans and grants with your business name.
- You qualify to receive NYSC interns from the federal government.
- Business registration is the first step to building a structure for your business.
- It prevents being held responsible for any civil wrong committed by the business
- You can easily apply for a visa to travel for business meetings, workshop and conferences
3 Quick Steps To Register a Business Name in Nigeria
Here is a step by step guide on how to register your business in Nigeria with the Corporate Affairs Commission.
It includes three key phases:
1. Account Creation
2. Name Reservations
3. Name Registration
Now let take a look at each of them in-depth
1. Account Creation
You need to register an account with the corporate affairs commission CAC to access its portal.
Account creation is completely free.
To to do that:
- Log on to pre.cac.gov.ng.
- Click on the registration button on the top right corner of your screen.
- Fill in your right details
- Then click register.
After clicking on the registration button
- You will get a verification link in your email
- Click on it to verify your email.
Now that your account registration on the portal is successful, you can proceed to register your business.
2. Name Reservation
The second step to register your business name in Nigeria is ‘name availability search.
The aim is to check if the name you want to register your business with is available and not already in use.
To do that:
- Go to cac.gov.ng
- Log on to your dashboard with your username and password
- Then click on new name reservation.
- Under name and type, choose the classification of your business.
- Then click Save and Continue.
The next step is objective
- Under the objective section, fill in new incorporation as a reason for availability search.
- Ensure you fill in all field marked red.
- Then click Save and Continue to preview.
Preview the details and make sure all your details are void of errors.
You will be required to pay the sum of N500, to do that click pay by Remita to receipt payment.
On the Remita page, you will see a list of different payment method choose the one most appropriate to you and pay.
After successful payment, you will be automatically redirected to your dashboard where your reservation will enter pending.
Note that you have a maximum of 60 days after application to reserve the proposed business name.
In addition, after 60 days the application will be cancelled.
3. Name Registration
Now that we have your business name reservation successful, let’s proceed to register the business name.
After successful approval, you will receive an email.
When you log in to your dashboard, you will see reserved,
- Click on it and it will bring up your approval history.
- The next step is to click on start registration beside your approved name and start registration.
- On the business details, enter your correct business details
- Then click on Save and Continue.
Under particulars of proprietors
- Enter the particulars of each proprietor
- Click Save and Continue.
Under the nature of business
- Fill in the right details and make sure you fill in the business description in “other nature of business description”,
- Click Save and Continue.
- Upload all required documents
- Click Save and Continue to preview your entries.
Also, make sure you go review all the information carefully to avoid registering the wrong information.
- Click on receipt payment to pay for your registration.
- After payment, remember to stay on the payment page as you will be automatically redirected to your dashboard to download the receipt of your payment.
- Download receipt of payment.
Once your registration is successful, your certificate will be automatically redirected to your registration panel where you can download your certificate.
Kaboom…Congratulations your business name have been successfully registered!
Requirements to Register a Business in Nigeria
After the 2020 amendment of the Company Allied and Matters Act (CAMA) by the CAC, there’s has been some new development on the principal laws guiding business and company formation in Nigeria.
The new requirements to register a business in Nigeria are:
- The prospective applicant must be above 18 years. Except where there are two or more adults having shares in the business.
- You must have two proposed names ready for the registration in case one is unavailable the other can be an option.
- A name that is already in use cannot be registered by another company, this also includes a name related to any government agency.
- The objective of your business must be clearly stated when applying for your business name
- You must indicate the type of business. Either is a private limited company, a private unlimited company or a company limited by guarantee.
- The physical and verifiable address is a must, even if you write just any address they will verify it.
- The share owned by each partner must be clearly stated.
- You must provide a means of identification. Such as a voter’s card, national ID, driver’s license or international passport.
How Much Does it Take to Register a Business Name in Nigeria?
Name reservation for prospective business owners is now N1000
The registration fee of a private company with a share capital less than N1m is N10,000
The registration amount for a private company with a share capital of more than N1m and up to N500m is N5,000 for every 1m shares of the company.
While that of a private company of above N500m share capital costs N7,500 for every 1m shares of the company.
Public company registration for the first N1m share capital or fewer costs N20,000
Lastly, registration of a company not having a share capital costs N20,000.
Lastly, you have all the information on how to register a business name in Nigeria. Also importantly, how to implement it.
Please note that you do not need to hire the services of a legal practitioner or any other third party to register your business name.
You can do it yourself.
In addition to getting a business name, endeavour to get your unique Tax Identification Number (TIN). It is a requirement that every business pays tax.
This will help you avoid any hassles while trying to access a loan for your business.
Harrison is a Seasoned Digital Marketing Consultant, Tech Enthusiast and Entrepreneur. He has great passion for helping businesses of all sizes to leverage on contemporary digital marketing strategies. He is the digital marketing and growth hack consultant at Primegate Digital, a solution and growth driven digital marketing agency in Lagos, Nigeria that is accelerating digital transformation in Africa.