In the past, business name registration in Nigeria was quite cumbersome. It would take several days and a lot of paperwork to get it sorted. It’s no longer that hard to register a business name in Nigeria.
Here are the steps to register a business name with CAC
- Choose a business name and check for the availability
- Complete your pre-registration form to register a business name
- Pay for a filing fee
- Prepare your documents for upload
- Submit the original copies of your documents
As an investor or entrepreneur, business name registration is one of the essential requirements for starting a business. Would you like to start a business and in need of business ideas, check this article to find out some business ideas in Nigeria.
An investor will only be interested in a company that is duly registered. On the other hand, for an entrepreneur to make the business eligible for specific benefits either from an investor or government, it has to be registered as a company. You can refer to this post for insights on how to find the best investments in Nigeria.
In Nigeria, the institution responsible for business registration is the Corporate and Affairs Commission (CAC). This is an autonomous body established in 1990 under the Companies and Allied Matters Act. They are charged with the responsibility of regulation and management of companies in Nigeria.
As of October 2020, the Federal Government of Nigeria is giving out Free business name registration to 250,000 businesses. Check the video below to learn more about this.
In this post, we will be giving you a step by step guide on how to register a business name in Nigeria through the Corporate Affairs Commission (CAC).
How to Register a Business Name in Nigeria
Let’s take a deep dive into the process to registering for a business name with the CAC of Nigeria.
1. Choose a Business Name and Check For Availability
Choosing a business name can be quite tasking sometimes. Your business name needs to be identified with a brand name. It is important that you pick a name that is relevant to your business.
You should do a quick search on the internet on the names you choose and have up to three backup plans. This is to ensure you have at least chosen the names that are not in use to the best of your knowledge.
You can also use a platform like Namelix, a digital tool to help with finding a name that fits your business.
2. Complete Your Pre-registration Form to Register Your Business Name
In the past, business name reservation at the CAC took days before it came back with a result. Today, it only takes the same day if you submit your request before 5 pm and it costs just NGN500.
Once you wrap up with the name reservation, you can then proceed to the registration of your business name proper. Using the online registration portal, you will have to complete a pre-registration form (CAC-BNo1).
3. Pay For a Filing Fee
Upon payment of the filing fee, you will receive a receipt of payment. Note, you can make Payment directly from the website portal or straight to the bank. The cost of business name registration depends on the type of company you are trying to register.
4. Prepare Your Documents For Upload
You will need to prepare a signed copy of the pre-registration documents and upload a scanned copy to the website for processing. The following are the requirements for registering a business name.
- Application form
- Filing fee receipt
- Means of Identification for the proprietors of the business.
5. Submit the Original Copies of Your Documents
You will have to submit the original signed copies of documents uploaded in step 4 to the CAC office. You will do this in exchange for your certificate and the Certified True Copies of the documents.
How Much Does it Cost to Register a Business Name in Nigeria?
- Registration of a private company with an authorized share capital of N1m or less, costs N10,000
- 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.
- Private company registration above N500m authorized share capital costs N7,500 for every 1m shares of the company.
- Public company registration for the first 1m share capital or fewer costs N20,000
- Registration of company not having a share capital costs N20,000
Hopefully at this point, you are fully equipped with the knowledge on how to register a business name in Nigeria.
Please note that you do not need the services of a legal practitioner, chartered secretaries, or any other third party to register your business name.
The process of the CAC business name registration has been simplified to encourage participation from prospective investors and entrepreneurs. One of the perks of registering a business name in Nigeria is that it makes you eligible to get financial assistance from the Bank of Industry.
In addition to getting a business name, endeavor to get your unique tax identification number (TIN), as every business in Nigeria must pay tax. This will help you avoid any hassles while trying to raise capital for your business.
Now that you have your business name registration under the belt, you will need to get business insurance to help keep your business afloat even in treacherous times.