How to Register a Business Name in Nigeria
In the past, registering a business name in Nigeria was extremely difficult. To figure everything out would require many days and a ton of paperwork. In Nigeria, registering a business name is no longer all that difficult.
Our update will provide exclusive content on how to register a business name in Nigeria, even as a novice. We shall also cover core important questions regarding CAC company registration in Nigeria.
Steps to CAC Company Name Registration
- Select a company name, then check to see whether it is available.
- Fill out your application for pre-registration to register a business name.
- Invest in a filing fee.
- Get your files ready for upload.
- Submit original copies of your documents.
Business name registration is one of the fundamental conditions for beginning a business as an investor or entrepreneur.
Only properly registered companies will have an investor’s interest. However, a firm must be registered as a corporation for the owner to make it eligible for particular benefits from the government or an investor.
Overview of Nigerian Business Registration
In Nigeria, the Corporate and Affairs Commission (CAC) is the organization in charge of business registration. They created this independent organization in 1990 in accordance with the Companies and Allied Matters Act. The management and regulation of businesses in Nigeria fall under their purview.
How to Create a Nigerian Business Name
Let’s go into great detail on registering a business name with the CAC of Nigeria.
- Select a company name and confirm its availability
Choosing a company name can occasionally be very difficult. You must associate your company name with a brand name. You should choose a name that is appropriate for your company.
You should conduct a fast online search for your selected names and have up to three alternative ideas.
This is to make sure that, to the best of your knowledge, you have at least selected names that are available. Another option is to use a website like Namelix, a computerized tool that may assist you in picking a name for your company.
- Finish filling out your pre-registration form to register your business name
Business name reservations at the CAC used to take days to respond with a result. Today, submitting your request by 5 p.m. only takes the same day and costs NGN 500. Once the name reservation process is complete, you can officially register your business name. You must finish a pre-registration form (CAC-BNo1) through the online registration portal.
- Cover the filing fee
A receipt for your payment will be given to you once the filing fee has been paid. Be aware that you can pay directly through the website portal or at the bank. The price to register a business name varies depending on the kind of business you want to register.
- Get Ready to Upload Your Documents
The pre-registration documents must be prepared, signed, and uploaded to the website as a scanned copy for processing. The prerequisites for registering a business name are as follows.
- Application form
- Filing fee receipt
- Means of Identification for the proprietors of the business.
- Submit your documents in their original form
The CAC office will need to receive the original, signed copies of the documents you uploaded in Step 4. You will provide this information in return for your certificate and certified true copies of the documents.
What are the Documents Required for Registering a Business Name in Nigeria?
Here are the documents you need to provide to register a business in Nigeria successfully:
- 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.
How Much Does it Cost to Register a Business Name in Nigeria?
A private company’s registration costs N10,000 if its authorized share capital is N1 million or less.
For every 1 million company shares, N5,000 is required to register a private company with a share capital of more than N1 million and up to N500 million.
Each million shares of a private business with an authorized share capital over N500m costs N7,500 to register.
For the initial 1 million shares of capital or less, public company registration is N20,000.
A corporation without equity capital must pay N20,000 to register.
How do I Register my CAC for Free?
Currently, the Nigeria Corporate Affairs Commission does not process free registration. However, registration discounts can be allowed on selected SMES. Use The “Sign Up” button if you are a new user.
Enter your name, phone number, email address, and other personal information. Your CAC account needs a username and password that you create. The “Sign Up” button must be clicked to finish the registration procedure.
How Much is Filing fee for CAC registration?
After registering your business name, you must purchase business insurance to keep your company afloat even during difficult times. Cac, The formal filing fee for registering a business name is N10,700, including the remittance fee. The fees for registering a corporation or an incorporated trustee differ from those for registering business names.
How Long Does it take to Complete CAC Registration?
According to CAC, name reservations and availability will now take 48 hours, 48 hours for availability corrections, and five working days to process consent for restricted names, limited by guarantee, and incorporated trustees.
Does CAC certificate Expire?
Cac certificates expire when annual returns are not filed consistently over a period of years. Another reason the CAC certificate expires is when the directors or proprietors use it to continue their illicit behavior.
Here are some benefits associated with registering your business with the CAC:
- Legal Protection: Registering your business makes it a legal entity that affords you some protection. For instance, it prevents other businesses from registering the same name.
- Brand Identity: By registering your business, you establish your business as a brand. It gives your business a unique identity, which makes it stand out and recognizable.
- Access to Loans and Investment: Banks and investors are likelier to lend money to or invest in registered businesses. This is because a registered business is considered more credible and legitimate.
- Business Expansion: A registered business is more likely to grow and expand. It increases the business owner’s confidence to open more branches anywhere, thereby increasing the business scope.
- Continuity: A registered business is considered a separate entity from its owners. Therefore, the business will continue to exist even if the owner becomes incapacitated or dies.
- Increased Customer Trust: Customers are more likely to trust and engage with a registered business than an unregistered one. This is because a registered business is seen as more credible and trustworthy.
- Access to Government Incentives: The Nigerian government offers various incentives and support to registered businesses. These incentives are meant to promote entrepreneurial activities and boost the economy.
- Corporate Social Responsibility: Registering your business allows you to contribute to the development of your community and society by paying taxes and carrying out corporate social responsibility initiatives.
Please note that these benefits can only be maximized when the business is run effectively and responsibly. Registration is not an automatic guarantee of success, but it certainly offers a framework within which a successful business can be built.
Conclusion
You should now be fully knowledgeable about registering a business name in Nigeria. Please be aware that registering your business name does not require the assistance of a lawyer, chartered secretaries, or any other third party.
The CAC business name registration procedure has been streamlined to promote involvement from potential investors and business owners. One benefit of registering a business name in Nigeria is financial aid from the Bank of Industry.
Get your tax identification number (TIN) and a business name because it is essential for tax auditing.
