How to register a business name in Nigeria | easy steps

There are numerous businesses in Nigeria. Not all are legal entity since a business name may not be registered.

The main reason for this is that most business owners have for one reason or another neglected taking their businesses to the next level.

Many people don’t even know that registering their businesses with the authorities makes it recognized legally as a business venture according to the laws of the land.

The Corporate Affairs Commission (CAC) is the federal government body saddled with the responsibility of registering businesses.

That includes regulating business operations in Nigeria.

What this mean is that for an enterprise to be recognized as a business entity in Nigeria, such a business must be registered with the Corporate Affairs Commission.

Prior to this time, registration of companies is a daunting task. Plus, its a time-consuming process which includes submission of files and waiting for approvals at CAC state offices.

For this reason, most business owners don’t make effort to register their businesses.

After all, no one stops you from operating a business even though you haven’t registered with CAC.

The best part is, the CAC has now made the process of registering your business.

And in this arrangement, interested individuals can register their business names themselves.

No longer do it for me here and there or having to wait, sometimes hours at a stretch at computer centers. Just to have someone help you register your business.

That is why I wrote this blog to show you how to register a business name in Nigeria all by yourself.

This article will guide you through the step-by-step procedures to take in making your company or business a legal entity.

Moreover, there are benefits attached to registering your business.

Particularly as it involves legal disputes or your ability to access government grants or bank loans, registering your business is not an option, it is a must.

How do I register my business in Nigeria?

First, its great you know there are four types of companies identified by the CAC.

1. Public limited company (PLC).
2. Private companies limited by shares.
3. Private companies limited by guarantee.
4. Unlimited company.

Here is something you should take note of.

While about 2 to 50 persons are required to form a private company, there are no limits to the number of people required to form a public company.

In addition to that, the minimum capital for a private company is Ten Thousand Naira (₦10,000), just as the minimum share for a public company is Five Hundred Thousand Naira (₦500,000).

This is the standard as far as business venture in Nigeria is concerned.

What are the requirements to register a business name?

The requirements to register a business in Nigeria are not beyond many people. Basically, here is what should be in place;

(i) Have a unique name in mind.

(ii) Five hundred naira (₦500) name reservation fee on CAC website.

(iii) Ten thousand naira (₦10,000) filing fee charged by CAC.

Recalled mentioned earlier it’s a do-it-yourself guide. To achieve this, the CAC has made it possible to register your business online.

So business owners like yourself won’t need to worry about going to Abuja or elsewhere.

Therefore, you register your business name online on the website of the Corporate Affairs Commission. Learn more about positive and negative effects of the internet.

How do I register my business name online?

By the end of this procedure, you would have been able to register your business with CAC.

1. Choose a business name

It is natural phenomenon that when you want to start a new business, the first thought that comes to mind is the name you want to give your business. This is what is known as your brand.

This is a very important thing because often time, the business name you have in mind might turn out to be taken already by someone else.

Those that have tried registering a domain (website) before can relate to this experience. You get to rearrange, amend, convert, style a name and so on.

Remember there are 7 billion people in the world and 200 million of them are in Nigeria.

So chances are you may find yourself changing and changing and changing before you arrive at a unique name to represent your business.

In selecting a name for your new business, the following should be considered;

i. The name you like for your business should not be the same or even similar to the name of another company that has been registered before;

ii. Your business name should not be misleading, provocative or offensive by moral and legal standards;

iii. The name of your enterprise should not be similar to that of a registered trademark e.g Microsoft, Amazon, Facebook, BUA.

2. Register your business

If your desired business name meet the criteria above, then proceed by following the steps below to register your business:

1. Log on to CAC business name registration page

2. Click reserve a name (you are required to submit your business name at this point for a non-refundable fee of five hundred naira (₦500) only).

According to the CAC, name reservation requests receive response within 4 working hours. That is if you made your request before 2 pm.

Therefore, you are advised to check your email address for feedback within 4 hours of reserving a business name on their website.

3. Click complete business name registration form to enable you fill it online.

4. Submit the application form with two (2) passport photographs of yourself (business owner).

5. Make payment of ten thousand naira (₦10,000) often referred to as filling fee, either through Remita on their website or through the bank details provided by CAC on their website.

6. Go to any of their offices in your state of residence to collect a hard copy of the business certificate. Though you can also get the soft copy online.

Congratulations, you have successfully registered your business name.

Its that simple? Yes! I you follow through this step-by-step guide.

Gone are the days when it took 3, 4, 5, and sometimes 6 months to register a business name in Nigeria. It was a long hectic process.

Check out these 31 facts about Nigeria you never knew.

But as with other sectors, technology has made registration of business name easier. Thanks to CAC embracing innovation.

It’s now so easy that you can even register your business name at your convenience from the comfort of your home or office space.

What will I benefit registering a business name?

Aside the original reason you wanted to register your business, there are also other benefits of registering a business name.

Among other things, it entitles your company to business grants, N-power or other channels.

Your business would also qualify to receive state government funds through their various small and medium scale enterprise (SME) platforms.

And wealthy individuals who assist new companies with start-up grant needed to finance the developmental stage of a new business would key into your business if you have a business registration certificate.

Registering your business name also open your business to other investors.

You can also register your business early even if you don’t have enough capital at a given moment. Because sometimes, the capital is not available, though the idea is great.

This saves you the emotional stress of seeing someone else register that darling business name you had in mind before you.

Remember, the its at times difficult to arrive at a unique business name that represents what your business is about. Waste no further time by taking action now.

I hope this guide helped you register your business name in Nigeria?

Please share it with your friends on social media.

You’d like to ask a question concerning registration of a business name or doing a business in Nigeria?

Feel free to leave a comment below this post.