How to Register a Business Name in Nigeria: The Complete Guide [2024]

Do you know why it is important to register your business name? A few months ago, one of my colleagues came across a funding opportunity for early startup business owners. This opportunity will be an excellent avenue for him to raise the capital funds needed for his business and expand or diversify. He was qualified except in one area – his company needed to be registered! Well, he forfeited the opportunity.

Key Insights

  1. Having a registered business aids easy branding and helps your business stand out in the competitive market.
  2. A registered business gives you access to funding opportunities for business expansion.
  3. Registering your business ensures protection of personal assets against business indebtedness.
  4. Adhering to post-registration requirements is important for sustaining the legality of your business.

As a business owner, whether you have been in the business for so long or have just started. Registering your business should be the first thing on your priority list, or you may miss out on opportunities just like my colleague.

Benefits of Getting Your Business Registered

If you don’t see the need why you should register your business yet, you should consider the following benefits that it brings:

  1. A registered business gives you access to funding and accessible loan facilities.
  2. With a registered business, you can easily comply with the law.
  3. A good business name brings about easy branding.
  4. A registered business will separate your personal assets from your business assets; in case there is any business dispute, your personal assets will be protected against losses, debts, bankruptcy and other legal actions that may arise from your business.
  5. A registered business gives you credibility and lets you earn customers’ loyalty.

How to Register a Business Name in Nigeria

To register a business name in Nigeria, you will have to:

  1. Create an account with the Corporate Affairs Commission (CAC)
  2. Search for your name availability
  3. Reserve your business name
  4. Commence registration
  5. Fulfill post-registration Requirements and adhere to regulations

Step 1: Create an Account with the Corporate Affairs Commission (CAC)

The Corporate Affairs Commission (CAC) is the government body overseeing business registration and regulation in Nigeria. By creating an account on the CAC website, you can register your business and ensure compliance with the law. This account will give you access to the required forms and allow you to submit your registration application. You can follow the steps below.

  1. Visit the official CAC website, cac.gov.ng.
  2. Scroll down to ‘Online Registration’ and click on it
  3. Then click on ‘Register’ on the top part of your screen: there, you are expected to type in your National Identification Number (NIN) or phone number
  4. After clicking ‘Next’, you will be prompted to enter your additional personal information. Once you have done that, click on ‘Register’.
  5. Verify your account by clicking on the verification link sent to your email. Once you have done that, you can log into your dashboard. The process of creating your account is now complete.

The dashboard is divided into 2 parts: the top part for name reservation and the lower part for business registration.

  1. Not Submitted’ shows that you have started your application process but have not finished it. 
  2. Pending’ signifies when you submit your application for name reservation or registration, which is still being reviewed
  3. Queried’ shows a fault with your submitted application, which was queried by the CAC. You could click on it to find out where the fault lies
  4. Denied’ signifies when your application was denied after submission and review.
  5. Reserved’ shows when your application has been approved.

Step 2: Search for Your Business Name Availability

Before registering your business, make sure the name is unique and not already taken. Research thoroughly to confirm availability. Hence, you should check the CAC database for registered businesses in Nigeria to ensure no one else has the same name.

Business Registration Consultant, Dr Chidi Okoro, suggests conducting a more comprehensive search for existing trademarks, domain names, and social media handles linked to your chosen name. This will help prevent conflicts and legal problems in the future. 

How to do it?

  1. Go to the CAC home page and click ‘Public Search.’
  2. It creates a search bar to type in your proposed name to search the record. For example: “Toris Kitchen”
  3. If the result says ‘Search not found’, you’re good to go, and the name can be used. You can proceed to the next step
  4. However, if it brings out different results of businesses having your proposed name or similar name variations, you must tweak it or change it thoroughly to avoid rejection.

Step 3: Reserve Your Business Name

Once you have confirmed the availability of your proposed name, log in to your dashboard again. There are 4 levels of the name reservation process: Name and type, Objectives, Preview, and Payment.

  1. Name and type

On the dashboard, click on ‘New Name Reservation.’ It takes you to a page where you’d fill out a form about the nature of your business. Under ‘company type’, select ‘Business Name’ since that is our focus for this article.

For the specific type, select the one that applies to you, choose ‘sole proprietorship’ if it’s a single-person business or ‘partnership’ if it applies to you.

Under proposed names, you’re given two options. Type in the name you’ve confirmed as available and a name variation under the second option. For instance: ‘Toris Kitchen’, then ‘Toris Food’ for the second option. Then Click save and continue

  1. Objectives

Here, you would select the reason for the availability search and reservation. The options could be changing your business name or for new registration or incorporation of your business, among other things

Then select the ‘Nature of Business Category’ and go through all the options to see which is closest to what your business offers. Do the same for ‘Nature of Business’ also.

Under ‘Additional remarks’, you can write a brief About-note for your business. For instance: ‘Tamara Beauty and Spa offers luxurious beauty treatments and rejuvenating spa experiences, providing a haven for relaxation and self-care.’ Click save and continue

  1. Preview

In this stage, critically review everything you have inputted to confirm accuracy. Then save and continue

  1. Payment

For the payment, click on ‘Remita’ and proceed to make your payment. The business name reservation would be approved between 24- 48 hours, after which you can proceed to the registration proper.

 

 

Step 4: Commence Business Name Registration

After the proposed name has been approved, go to the dashboard and click ‘Start Registration.’

The process comprises 6 simple stages: Business details, Particulars of proprietors, Nature of Business, Document upload, Preview, and Payment.

  1. Business details

According to Youtuber Circles Digital, when you are at the initial stage it is advisable that the ‘Business commencement date’ should be filled in as the date you are doing the registration because using an older date would incur additional charges.

Go ahead and enter other details as required: your email, phone number, the principal location of your business and the details of the location. If your business has a branch, fill it in; if not, you can leave it blank

  1. Particulars of proprietors

If the business is a sole proprietorship, your name would appear automatically as the individual proprietor. Then, you can save and continue

  1. Nature of business

Fill in the details for the nature of the business just as you did while applying for the name reservation

  1. Document upload

The next step is to upload the requested documents, which are:

  • Means of identification (in pdf)
  • Signature (in jpeg or png)
  • Passport photograph (in jpeg or png)
  • Any other document (in pdf)

You can use your phone to take clear pictures, convert them to the required document format, or scan the images. Note that the uploaded documents should be no more than 3MB. Save and continue

  1. Preview

Carefully preview your details because, after this stage, changes cannot be made. Be sure to double-check all information for accuracy and completeness before submission. Any errors or omissions could delay the processing of your application.

  1. Payment

Proceed to make payment. If you are ready to pay, click on the Remita button You will be directed to a page to input your card details or select another payment option from the left side of your screen, then make the payment.

Move to your dashboard and refresh to confirm your registration status is pending approval. The CAC will review your application and verify the information provided. If everything checks out, you’ll receive confirmation of your registration and a Certificate of Registration after a maximum of 5 days.

The processing time varies, but you can track the status of your application online through the CAC portal. Exercise patience as you await approval from the commission.

Step 5: Fulfill Post-Registration Requirements and Adhere to Regulations

After approval, you’ll get your Certificate of Registration from the CAC. This document proves your business name is officially registered by the Nigerian government. You should keep it safe for future business transactions.

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Conclusion

Your business is now registered with the CAC, but your duties continue. Stay compliant by meeting ongoing requirements like updating business details and fulfilling tax obligations.

If you don’t follow these obligations, you may be penalized or lose your business’s legal status. Therefore, it is necessary to stay updated on your responsibilities as a registered business owner and seek professional advice when necessary.

 

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