Business name registration is the term used to describe the procedure in Nigeria for registering a business name. This article will help you know how to register a business name in Nigeria. You can register one of three business structures in Nigeria.
A business name, an incorporated company, and incorporated trustees are the three types of structures. These arrangements each have unique legal ramifications.
This guide’s primary goal is to teach you how to register a business name in Nigeria, but it will also explain the distinctions between incorporating a company and registering a business name, as well as the repercussions of both.
How Much Does it Cost in Nigeria to Register a Business Name?
In Nigeria, registering a business name ranged in price from ₦5,000 to ₦1,000,000. The cost to register a business name in Nigeria is broken down as follows:
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- In Nigeria, a normal company name registration costs ₦5,000.
- A private corporation with a share capital of ₦1 million or less must pay ₦10,000 to register.
- For every ₦1 million in share capital, or portion thereof, the cost of registering a private corporation or increasing the share capital is ₦5,000.
- A firm without share capital had to pay ₦20,000 to register.
- For every ₦1 million in additional share capital, or portion thereof, the registration of a public company costs ₦15,000.
- For every ₦1 million in share capital, or portion thereof, the cost of registering a public company or increasing share capital is ₦10,000.
- For the first ₦1 million in share capital, or a portion thereof, registration of a public company and an increase in share capital cost ₦20,000.
- Every ₦1 million in share capital, or a portion thereof, costs N7,500 to register as a private business or to increase share capital above ₦500 million.
What requirements must be fulfilled in order to register a business name in Nigeria?
The following details or paperwork are required for CAC (Corporate Affairs Commissions) company name registration in Nigeria:
- Approved Business Name
- General Business Information
- Business Address, Name, Address, Occupation, and other information about the Business
- Signature of the Owners
How to Register a Business Name in Nigeria Online (Step-by-Step)
Both online and in-person registration of a business name at a CAC office are options in Nigeria. In Nigeria, it may take up to two days to register a whole business name. This article will walk you through the steps of registering a business name in Nigeria.
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Step 1: Run a search to see whether your business name is already taken.
- Visit https://services.cac.gov.ng/ and click register on register to create an account.
The following step is to carry out a general search to see if your chosen business name is already taken. This way, you can be sure that the business name you intend to register in Nigeria is unique. You’d save time and money by doing this.
Step 2 – Reserve Your Business Name
Once you have chosen a name for your company and verified that it is not already in use. To submit the business name or names, use the Name Reservation function. Fill out the forms that are shown.
It cost ₦500 to reserve this business name.
See:
Once your business name has been successfully reserved, you’ll get a message with your Availability Code. Registering your company name with your availability code is now possible.
Note: The CAC will reserve the business name for you for a 60-day period. During this period it is expected that you will complete the registration process for your business name.
Step 3 – Register Your Business Name
to set up a company name in Nigeria. You must use the online registration site to finish the statutory pre-incorporation registration form (CAC/BN/1).
You must take the following four important actions:
- Complete the required fields.
- Pay the Stamp Duty and Incorporation Filing Fees.
- the necessary scanned papers, upload
- Your certificate of incorporation has been received.
You can complete the first three procedures in 24 hours, and you can even have your certificate of incorporation on the same day. Using your card information, you can make a payment through any Nigerian bank or online. The incorporation certificate will be delivered to your designated Drop Off Point.
upon completion of the forms presented to you for business name registration. The following step is to use the website to pay the CAC filing fees.
Whenever your payment has been accepted or has been a success. Click “Continue” to submit the forms at this time.
If everything looks good, CAC will check your supporting documents and let you know that your application has been approved and your Business Name Certificate is ready for pickup.
What’s the Difference between Registering a Company and a Business Name in Nigeria?
You want to launch a business, but you also want to spend as little cash as possible. Like you, the majority of business founders would just register a business name to get things going. You cannot hold them responsible for failing to take into account the legal ramifications of their actions.
It’s the more practical and budget-friendly choice. On the other hand, you are not required to follow their path. It’s critical to comprehend the hazards and distinctions between incorporating a firm in Nigeria and registering a business name there.
It’s crucial to select the business structure that will serve you best in the long term when you wish to formally establish a business structure in Nigeria, as short run.
The business structure that best suits your operation must be chosen.
The following is a summary of the key distinctions between registering a business name and forming a limited liability company:
- You are personally responsible for the obligations of a company that just has a registered business name. That is, creditors may pursue you personally or your personal property.
- While you and the firm’s stockholders are not personally liable for the obligations of a business that has been registered as a limited liability corporation (LLC).
- It will be extremely difficult for a business to get finance if it has only registered its business name.
- It is significantly simpler to raise funds for a Limited Liability Company (LLC). either through equity investments from investors or by using company shares as collateral for a loan. Due to the lack of extensive paperwork and legal representation, registering a business name is less expensive.
- You will need a lawyer or a credited agent for an LLC, as well as your business’s legal and constitutional documentation.
- making the formation cost of an LLC higher.
- It is incredibly difficult to transfer ownership of a business to a different person since, in terms of a business name registration, there is no distinction between the owner of a business and the business itself.
- Ownership can be transferred with ease under an LLC.
How to Register a Business Name in Nigeria Online?
Both online and in-person registration of a business name at a CAC office are options in Nigeria.
In Nigeria, it may take up to two days to register a whole business name.
A step-by-step guide on how to register a business name in Nigeria is provided below:
- To make an account, go to https://services.cac.gov.ng/ and click register on register.
- The following step is to carry out a public search to see if your proposed business name is already taken.
- This way, you can be sure that the business name you intend to register in Nigeria is unique. You’d save time and money by doing this.
- Once you’ve selected a company name and verified that it’s not in use. Utilize the business submission feature for name reservations.
- Fill out the forms that are presented to you. For a period of 60 days, the CAC will hold the business name in reserve for you.
- It is anticipated that you will finish the registration process for your business name during this time. upon completion of the forms presented to you for business name registration. The following step is to use the website to pay the CAC filing fees.
- Following the approval or success of your payment. Click “Continue” to submit the forms at this time.
- CAC will examine your supporting documentation, and if everything is in order, it will let you know that your application has been accepted and your Business Name Certificate is ready for pickup.
What are the requirements for registering a business name in Nigeria?
The following information or documents must be submitted in order to register a CAC company name in Nigeria:
- Approved Name of the Business
- General Information about the Business like Address, address, occupation, and other information about the Business Owners
- The proprietors’ signature
Can I Register My Business Name online in Nigeria?
Yes, you can use the CAC registration page to register your business name online in Nigeria. The Corporate Affairs Commission recently updated the registration platform.
What is the cost of registering a business name in Nigeria?
The price breakdown for registering a corporation or a business name in Nigeria is as follows:
In Nigeria, a business name registration costs N5,000.
A private corporation with a share capital of N1 million or less must pay N10,000 to register.
For every N1 million in share capital, or portion thereof, the cost of registering a private corporation or increasing the share capital is N5,000.
A firm without share capital had to pay N20,000 to register.
For every N1 million in share capital, or portion thereof, the registration of a public company with a rise in capital exceeding N500 million costs N15,000.
A firm without share capital had to pay N20,000 to register. For every N1 million in share capital, or portion thereof, the registration of a public company with a rise in capital exceeding N500 million costs N15,000.
For every N1 million in share capital, or portion thereof, the cost of registering a public company or increasing share capital is N10,000. For the first N1 million in share capital, or a portion thereof, registration of a public company and an increase in share capital cost N20,000. Every additional N1 million in share capital, or portion thereof, cost N7,500 for the registration of a private company.