Today, I will take you through how to register a business name in Nigeria. Business name provides recognition for your business.. Therefore, it is a crucial milestone on your entrepreneurial journey.
To register your business name, You can either hire someone to register your business name online in Nigeria, or you can do it yourself, as CAC has streamlined the process.
This post will explain a business name, how to pick one, why it’s important to register it, and how to do so online in Nigeria. Keep reading to learn all you need to know
What is CAC?
The Corporate Affairs Commission (CAC) is the statutory body responsible for the administration of Companies and Allied Matters Act (the Act) which includes the regulation and supervision of the formation, incorporation, registration, management, and winding up of companies in Nigeria.
What is a Business name?
A business name is the label you give your business for recognition purposes. Choosing a strong business name can greatly impact your brand.
Who needs to register a business name in Nigeria?
Anyone looking to start and grow a business should register their business name in Nigeria. With numerous benefits to registration, it’s a step you shouldn’t overlook. With that said, let’s look at the benefits of having a business name registered.
Benefits of registering your business name
Right to the name
The business name you register will be exclusively yours, meaning any other business using the same name would be considered counterfeit or fake.
Consider this scenario: Fred launched a pure water business named “The Sparkles” in 2011 without registering it. Thirteen years later, in 2024, Miss Hannah started her own pure water business with the same name, but she registered it with CAC.
Who would have the rightful claim to the business name? Miss Hannah right? Of course, Miss Hannah would have the rightful claim. Since she registered the business name promptly, she has the authority to take legal action against Mr. Fred, requiring him to change his business name or close down his business.
Now you understand why it’s crucial to register your business name in Nigeria.
Your business will have a good reputation
Likewise, when you register your business name, others will see it as real and trustworthy. In a world with many scams, this is important. Registering also means you won’t worry about being bothered by other businesses or the authorities.
You will be given a certificate
The certificate you receive acts as evidence that your business name is officially registered. You can use it to prove your registration status to anyone who questions your business legitimacy.
Your business becomes a separate legal entity
By registering your business, you establish a separate identity for it. This means that in case of any legal issues, your assets are protected, and only your business assets are at risk.
You can get access to grant
When grant opportunities arise, you’ll be ready to apply and showcase your business confidently, knowing it’s officially recognized.
Your business can gain loans
A registered name also helps you gain a reputation with Loan companies. They will be more willing to lend to your business smoothly because they can trust it.
Choosing a business name
Selecting a business name is more complex than it appears. That’s why we’ve offered the following tips to assist you in making your decision.
Make it simple
Some think an ambiguous name means business success, but that’s not true. Remember, simplicity is key. If people struggle to write, say, or recall your business name, it could harm your business. This is evident when you look at major global brands like Twitter, Facebook, Google, Alibaba, Uber, and Amazon—they all have easy-to-remember names.
You can learn from them and choose a name that’s easy for your target audience to remember.
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Check for the domain name availability
It’s crucial to pick a name with an available domain name. The domain name is the web address of your website.
Today, having a website for your business is essential to build a strong online presence. Your business website showcases information about your company and offers payment options for customers to make purchases.
So, it’s important to verify if the business name you’re choosing is also available as a website domain.
Use AI tools to search for a business name
In this day and age where AI is taking over the world. AI tools are available to assist you in selecting a business name in Nigeria by suggesting suitable options for your business.
What you need to choose a business name in Nigeria online
To register your business name, you must fulfil the following requirements:
- The applicant must be at least 18 years of age.
- There can be an exception to this rule if 2 or more persons are shareholders in the business.
- The applicant must have 2 proposed names for the business.
- The second name will serve as an alternative should in case the first one is not available.
- The applicant must briefly state the business objectives.
- The applicant must clarify the nature of the business. It can be a company limited by guarantee, a private limited company or a private unlimited.
- You cannot use a name that’s already used by another business in Nigeria
- The business must have a location.
- The applicant must have a valid means of identification. This can be a NIN, driver’s license, international passport or voter’s card.
- Each shareholder/partner must be stated and the shares held by each of them.
You will also be required to fill in the following information;
- Surname/First Name/Other Name
- Date of Birth
- Gender
- Nationality
- Username/password
- Occupation/Description
- Country/State/LGA
- Post Code
- City/Town/Village
- House Number/Building Name
- Street Name
- Permanent voter’s card
- National ID card
- International passport
- Driver’s License
- Birth Certificate/Age Declaration
How to register a business name in Nigeria online with CAC
Create an account with CAC
To register your business online with CAC in Nigeria, you need to set up an account with them. You can do that here. Once you provide your business NIN or phone number, your details will be displayed.
Check for the availability of the Business Name
After creating your account, you will need to search the record of the business names in Nigeria, if you discover that the name is available, you will then proceed to the next step, however, if it is not available, you will have to select another name.
Complete the pre-registration form
If the name is free, you must reserve it for your business by completing the pre-registration form and paying a fee of five hundred naira (N500). After this step, you’ll need to wait for 24 hours to receive a response. If your chosen name is available, you’ll receive an approval notice along with a name availability code.
Register your business name
You will need to finally fill in the registration form with the following information to complete your registration
- approved name;
- general nature of the business;
- full address of the principal place of business and every other subsidiary place of business;
- proposed date of commencement of the business;
- passport-size photographs of the owners; and
- Proficiency certificate (If required).
Once CAC has reviewed and verified your documents to their satisfaction, they will approve them.
Download your certificates
The following are the documents you will download after the final approval
- Original Certificate of registration of the business name
- CTC of the Application for the Registration of the business name
The fee you will pay depends on the type of business you want to register for.
How much does it cost to register a business name in Nigeria online?
- Registration of a company not having a share capital costs N20,000
- Public company registration for the first 1m share capital or fewer costs N20,000
- Registration of a private company with an authorized share capital of N1m or less, costs N10,000
- Private company registration above N500m authorized share capital costs N7,500 for every 1m shares of the company.
- Registration of a private company with a share capital of more than N1m and up to N500m costs N5,000 for every 1m shares of the company
Conclusion
Now that you understand the importance of registering your business online in Nigeria, it’s time to take action and get started. However, please keep in mind that this post provides a general overview of the process. If necessary, you may need to consult a professional for specific guidance tailored to your business needs.
Fancy read on ways to make money online?
- Proven strategies to sell digital products online in 2024
- Best Side hustles for Nigerian without quitting main job
- Read on how to start youtube channel and earn money
Cheers to your new awaiting Business
Till next time.
Cheers ❤️
Alan Stewart
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