When you make up your mind to start a business, one of the preliminary issues to be addressed is the registration of your business name.
Under Nigerian law, you are expected to register your business name, unless you want to run your business with your name.
Of course, there is nothing wrong in doing business with your name; but one problem you will have when you don’t have a registered business name is that you may not likely enjoy patronage from big clients like governments, government agencies, companies, and even individuals. In fact, many people prefer dealing with those who have a registered business name.
The rationale behind this is that it is safer to deal with people who have registered business name than those who do not register their business name. Registration of business name confers trust and credibility. Of course, you should know that business is done based on trust. If I have any course to believe that when I transact business with you, you will disappear tomorrow, I would be reluctant to do business with you.
In addition, you stand a chance of being granted loan by a bank, when you have a registered business name. In fact, most if not all banks in Nigeria, would not offer you loan to run or expand your business, unless you have a registered business name. Banks prefer dealing with a legally recognised business entity.
Again, having a registered business name affords you the opportunity of opening a current account in the name of your business. Now, no bank will allow you to open an account in the name of your business without first confirming the registration of your business name. The bank will, at your own expense, ask its lawyer to conduct a search at the Corporate Affairs Commission (CAC), to confirm whether your business is registered, before it can open an account in your business name.
Having a current account entitles you to the use of cheque. Most customers find it more convenient effecting payment by means of cheque than raw cash. You can also make payment in the name of your business by means of cheque.
Another benefit of having a separate bank account for your business is that it helps you to maintain proper account and be accountable in all transaction done in the name of your business. It is not advisable to use your personal account as your business account or vice versa.
Types of Businesses that Can be Registered
a. Sole proprietorship (one-man business).
b. Partnership
c. Company
i. Company limited by shares
ii. Company limited by guarantee
iii. Unlimited company
NOTE: Any of the three companies above can be registered either as a private or public company.
Incorporated Trustees
This has to do with registration of non profit making organisations like non-governmental organisations, clubs, societies, associations, churches, religious organisations, etc.
How to Register Your Business Name
In respect of a one-man business, partnership, or incorporated trustees, an individual can, if he so desires, do the registration by himself. But in the case of company incorporation, it is lawyers that do the job mostly. Although Accountants and Chattered Secretaries are also qualified to incorporate companies, there is a stage in the incorporation process where they still have to seek the service of a lawyer. There are also some business people who help people to incorporate companies. Such business people have their lawyers who handle the incorporation process.
Now, supposing your own business is a one-man business, and you wish to register it by yourself, you can follow the procedure below to get it registered:
1. Brainstorm as many business names as possible and select two that you wish to adopt. Why you are selecting two business names, and not one, is that if one is not available, the other may be available. So, figure out two possible business names that you intend to use as your business name.
2. Go to any branch of Company Affairs Commission (CAC) to conduct a search of the two names you have chosen. Remember you will pay some fee to do a search of the names you intend to adopt. You will also pay a fee to complete the registration.
3. If any of the names is available (that is, if there is no existing registered business bearing similar name), then you will be allowed a period of 60 days within which to complete the process of registration.
4. You pay the registration fee and you are given appropriate forms to fill and submit.
5. In few days time, your certificate of Business name registration will be issued to you. On the other hand, if you want to register your business name same day, you may opt for express business name registration. However, CAC charges higher fee for this service.
Note also that you can, on the other hand, register your business name online. But you must be computer literate and you must read carefully the instructions on the CAC website before you proceed.
CAC websites are:
a. www.cac.gov.ng
b. www.cacnigeria.org
For enquiry, contact us. We can help you register your business name, incorporate your company, or your association, club, church, society, or charity organisation.
You can reach us via our email: conqueror.adaji30@gmail.com
