Gone are the days of tedious paperwork and lengthy waiting periods. Now, it's simpler than ever to register your business name in Nigeria. Just follow these steps:
- Choose a unique and available business name.
- Complete the pre-registration form.
- Pay the required filing fee.
- Prepare and upload your documents.
- Submit the original copies.
Whether you're an ambitious investor or a passionate entrepreneur, registering your business name is an essential step towards building your empire. It's the gateway to attracting investors, accessing government benefits, and realizing your business's full potential. If you're seeking business ideas in Nigeria, be sure to explore our enlightening article.
Investors are naturally drawn to professionally registered companies, while entrepreneurs can leverage registration to unlock exclusive advantages from investors and government programs.
Overview of Business Registration in Nigeria
In Nigeria, the Corporate and Affairs Commission (CAC) plays a vital role in business registration. Established in 1990 under the Companies and Allied Matters Act, the CAC is an independent body responsible for regulating and managing companies throughout the country. With their expertise and authority, they ensure a smooth and efficient process for entrepreneurs looking to register their businesses in Nigeria.
In 2020, the Federal Government of Nigeria announced the allocation of free business name registrations to 250,000 lucky businesses.
In this post, we are thrilled to present you with a comprehensive, step-by-step guide on how to register a business name in Nigeria. Our guide will walk you through the process seamlessly, leveraging the expertise of the Corporate Affairs Commission (CAC).
How to Register a Business Name in Nigeria
Let's delve into the process of registering a business name with Nigeria's CAC.
1. Choose a unique and available business name
Selecting a business name can often prove to be a challenging task. Your chosen name should encapsulate your brand's identity and resonate with your target audience. It's crucial to opt for a name that aligns seamlessly with your business's core values and offerings.
To ensure a successful choice, conduct a quick online search to validate the availability of your selected names. It's advisable to have up to three alternative options in case your initial choices are already in use. This precautionary step ensures that you're making an informed decision and avoiding potential conflicts.
Streamline the naming process with helpful digital tools like Namelix. This innovative platform offers valuable assistance in finding a name that perfectly complements your business.
2. Complete the pre-registration form
Gone are the days when business name reservations at the CAC took several days to yield results. Now, thanks to improved processes, you can receive your reservation outcome on the same day, provided your request is submitted before 5 pm. What's more, the cost has significantly reduced to just NGN500, making it accessible for aspiring entrepreneurs.
Once you've successfully secured your desired business name through the reservation process, it's time to proceed with the official registration. Utilizing the convenient online registration portal, you'll be required to complete a pre-registration form known as CAC-BNo1.
3. Pay the required filing fee
After paying the filing fee, you will receive a payment receipt. Please note that you have the option to make the payment directly through the website portal or by depositing it directly into the bank. The cost of registering a business name varies depending on the type of company you intend to register.
4. Prepare and upload your documents
To complete the registration process, please ensure you have a signed copy of the pre-registration documents prepared. You will then need to scan the documents and upload the scanned copy onto the website for further processing. Below are the necessary requirements for registering a business name:
- Application form
- Filing fee receipt
- Means of Identification for the proprietors of the business.
5. Submit the original copies
Documents Required for Registering a Business Name in Nigeria
- The Email address and phone number of the proposed company.
- The registered address of the company.
- Identification documents of the directors and shareholders such as International Passports, National Identity Cards, Driver’s licenses, etc.
- Name reservation approval note from the CAC.
- Objects of the company.
- Directors and shareholder’s full names, occupations, residential addresses, and dates of birth.
- Stamp duty and statutory fees.
- Incorporation certificate and company resolution in a case where another registered company (local or foreign) will be a subscriber or shareholder to the proposed company.
Cost of Registering a Business Name in Nigeria
The cost of registering a business name in Nigeria varies depending on several factors. Here are the different registration fees associated with different types of companies:
- For the registration of a private company with an authorized share capital of N1 million or less, the cost is N10,000.
- If you are registering a private company with a share capital exceeding N1 million and up to N500 million, the cost is N5,000 for every 1 million shares of the company.
- Registration of a private company with an authorized share capital above N500 million incurs a cost of N7,500 for every 1 million shares of the company.
- For the registration of a public company with a share capital of 1 million shares or less, the cost is N20,000.
- Companies that do not have a share capital are also required to register, and the registration fee for such companies is N20,000.
In Conclusion
Having knowledge about registering a business name in Nigeria equips you with the necessary information. It's important to note that engaging the services of a legal practitioner, chartered secretary, or any third party is not required for the registration process. The CAC has simplified the business name registration procedure to encourage and facilitate participation from prospective investors and entrepreneurs. An added benefit of registering a business name in Nigeria is the eligibility to obtain financial assistance from the Bank of Industry.
While registering your business name, it is advisable to obtain a unique tax identification number (TIN) as well, as every business in Nigeria is obligated to pay taxes. This will help you avoid any difficulties when seeking capital for your business.
Having completed your business name registration, it is prudent to consider acquiring business insurance. This step will provide support and resilience to your business, even during challenging times.
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