This article is about how to register your business name in Nigeria currently in this year 2022. If you are a business owner and you are looking for a guide on how to go about this with the Corporate Affairs Commission (CAC) in Nigeria, this article is for you as it will enlighten you on the step by step processes involved in the registration of a business name in the country today.
Nigeria, being Africa’s most populous country is blessed with enough human resources and this has contributed greatly to the establishment of several businesses all over the federation. The country is also a top investment destination in Africa, all these, contributing significantly to the growth of the economy, which is the largest in the continent.
Apart from the human resources that the country is blessed with, there is an abundance of mineral resources in Nigeria which contribute greatly to the flow of money all round the nation and it has enabled people establish businesses around the mining sector as well. Whichever the business that you have set out to do, whether small scale or large scale, a good business name will serve you well and registering it with the appropriate registration body in the country will ensure that people doing business with you are doing so with a trusted entity.
If you have it in mind to register your business with the Corporate Affairs Commission (CAC) of Nigeria in the shortest time possible and without stress, we will give you an outline of the various steps involved but before then, let us find out what a business name really means.
BUSINESS NAME REGISTRATION IN NIGERIA: AN OVERVIEW
Your company’s legal identity is its name. It could be your given name, a nickname, or something completely distinct and original to you. Because your business name will be visible to the public, it is critical that you choose one that is appropriate for you. For official correspondence, such as letters and invoices, a business name is crucial.
Business name registration in Nigeria is quite simple, and entrepreneurs or investors can quickly register their company name in Nigeria. As aforementioned, the Corporate Affairs Commission (CAC) is in charge of this registration, which was established in 1990 by the Companies and Allied Matters Act to govern the establishment and management of companies in Nigeria. Private persons can now register their businesses from the comfort of their own homes, unlike in the past.
WHAT ARE THE BENEFITS OF REGISTERING A BUSINESS NAME IN NIGERIA TODAY?
There are numerous advantages to registering your business name with CAC as a Nigerian company, and they are as follows:
- Registering your business name helps to protect your legal liability
- You will be able to open a corporate account for your company once your have registered your business name
- Your business has a better chance of attracting investors if you have registered its name with the CAC
- Registering your business name in Nigeria increases your present and new consumers’ confidence and trustworthiness in your business
- You can to apply for loans and grants with your business name once it has been registered
- You also qualify to receive NYSC interns from the federal government
- Registration of your business name in Nigeria is the first step towards building a credible structure for your business
- With your business name registered, you can apply easily for a visa to travel for business meetings, workshops and conferences.
HOW TO REGISTER A BUSINESS NAME IN NIGERIA 2022
Below are the step by step processes on how to register your business name in Nigeria with the Corporate Affairs Commission this 2022:
To access the Corporate Affairs Commission’s business name registration portal, you must first create an account with the CAC. The creation of an account is entirely free, and to do so, kindly follow these steps:
- Go to pre.cac.gov.ng to get started
- In the top right corner of your screen, click the registration button
- Fill up your correct information
- Then click the register button
- After you have clicked the registration button, an email with a verification link will be sent to you
- To verify your email, click on it
- You can now proceed to register your business after completing your account registration on the platform.
BUSINESS NAME RESERVATION
The ‘name availability search’ is the second step in registering your business name in Nigeria. The goal is to see if the business name you wish to register is available and not already in use. To do so, please follow these steps:
- Go to pre.cac.gov.ng to learn more
- Use your username and password to access your dashboard
- Then select New Name Reservation
- Choose your company’s classification under name and type
- After that, click Save and Continue
- The next step is very important
- Fill in new incorporation as the reason for the availability search in the objective section
- Make sure you fill out all of the red fields (very important)
- Then, to preview, click Save and Continue
- Examine the details and double-check that they are all correct
- You must pay the sum of ₦500; to do so, click pay via Remita to receive payment receipt
- You will find a list of different payment methods on the Remita page; choose the one that is most acceptable for you and pay
- You will be promptly routed to your dashboard after making a successful payment, where your reservation will be marked as pending
- You have 60 days from the date of application to reserve the proposed business name
- Furthermore, the application will be cancelled after 60 days.
BUSINESS NAME REGISTRATION
Let us get started on registering your business name now that you have successfully reserved it:
- You will receive an email after your application has been approved
- When you log in to your dashboard, you will notice a reserved section
- It will bring up your approval history if you click on it
- The next step is to click the start registration button next to your approved name
- Fill up your correct business information in the business details section
- Then press the Save and Continue button
- Under information for proprietors, fill in the particulars of each proprietor, then continue by clicking Save and Continue
- Under the nature of business, fill in the appropriate information, and be sure to include a business description in the “other sort of business description” section. Continue by clicking Save and Continue
- Next, all needed documents must be uploaded. To preview your entries, click Save and Continue. Also, make sure you look over all of the information thoroughly to avoid registering incorrect data
- Next, to pay for your registration, click on receipt payment. Remember to stay on the payment page after making your purchase since you will be automatically taken to your dashboard to receive your payment receipt
- Download the payment receipt. Your certificate will be instantly redirected to your registration panel where you may download it after your registration is complete.
- Congratulations, you have successfully registered your business name with the Corporate Affairs Commission (CAC) of Nigeria.
REQUIREMENTS FOR REGISTERING A BUSINESS NAME IN NIGERIA 2022
There has been some fresh development on the principal legislation driving business and company formation in Nigeria since the CAC amended the Company Allied and Matters Act (CAMA) in 2020.
The following are the new requirements for registering a business in Nigeria currently in this year 2022:
- The applicant must be at least 18 years old. Unless there are two or more adults who own shares in the company
- If one of your proposed names is unavailable, you must have a backup plan in place
- A name that is already in use by another company, as well as a name associated with any government entity, cannot be registered by another company
- When filing for a business name, you must explicitly define your company’s goal
- You must specify the nature of your business whether it is a private limited company, a private unlimited business, or a corporation limited by guarantee
- The actual and verifiable address of your business is required; the CAC will validate any address you provide
- Each partner’s share owned in the company must be stated clearly
- You must give proof of your identity. For example, a voter’s card, a national identification card, or an international passport.
HOW MUCH DOES IT TAKE TO REGISTER A BUSINESS NAME IN NIGERIA?
The following are the various prices of different business name registrations in Nigeria this 2022:
- The cost of reserving a name for a potential business owner is currently ₦1000
- A private business with a share capital of less than ₦1 million must pay a registration fee of ₦10,000
- The registration fee for a private business with a share capital of more than ₦1 million and up to ₦500 million is ₦5,000 per 1 million shares
- A private firm with a share capital of more than ₦500 million pays ₦7,500 per 1 million shares.
It is very important that you pick a good business name and check first if someone else is using it before proceeding to the CAC. If you do not do this and you proceed to the CAC, your registration will be delayed and you will have to keep re-registering until you get it right. Bear in mind that choosing someone else’s business name can have legal repercussions in the future as it may cause problems registering other business related to your brand.
Finally, bear in mind that you do not need to pay a lawyer or any other third party to register your business name in Nigeria. It is something that you can do on your own. In addition to a business name, make an effort to obtain your Tax Identification Number (TIN). It is a legal necessity for all businesses in the country to pay taxes. This will save you time and aggravation when applying for a business loan.