In the past, business name registration in Nigeria was quite cumbersome. It would take several days and a lot of paperwork to sort the business registration sorted.
As an investor or entrepreneur registering, your business is one of the essential requirements for starting a business. An investor will only be interested in a company which 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 in Nigeria.
In Nigeria, the institution responsible for business registration is the Corporate and Affairs Commission (CAC). The Corporate Affairs Commission (CAC) 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.
Steps To Register A Business in Nigeria
Below are the required steps to registering a business in Nigeria.
Step 1: Choose A Business Name
Choosing a business name can be quite tasking sometimes. But your business name needs to be identified with a brand name. It is also vital 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 Namelix, a digital tool to help with finding a name that fits your business.
Step 2: Submit Your Name To The CAC For Name Reservation
In the past, name reservation at the CAC takes days before it comes back with a result. Today, it only takes the same day if you submit your request before 5 pm. It costs just N500. You can make the name reservation on the CAC website.
Step 3: Register Your Business Name
Once you wrap up with the name reservation, you can then proceed to the registration of business name proper. Using the online registration portal, you will have to complete a pre-registration form (CAC-BNo1).
Step 4: Pay For 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 registration depends on the type of company you are trying to register.
- Registration of a private company with an authorized share capital of N1m or less, costs N10,000
- Registration of private company with 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
Step 5: 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 pre-registration substantiating documents include
- Application form
- Filing fee receipt
- Means of Identification for the proprietors of the business.
Step 6: Submit the original copies of your documents.
You will have to submit the original copies of documents uploaded in step 5 to the CAC office. You will do this in exchange for your certificate and the Certified True Copies of the documents.
Please note that you do not need the services of a legal practitioner, chartered secretaries, or any other third party to register your business.
The CAC has simplified the business registration process to encourage participation from prospective investors and entrepreneurs, and registering makes you eligible to get financial assistance from the Bank of Industry.
Also, endeavour to get your unique tax identification number (TIN), as every business in Nigeria must pay tax, and to avoid any hassles while trying to raise capital for business.
Now that you have your business name registration under the belt, apply for business insurance to help keep your business afloat even in treacherous times.
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