Up to now, business name registration in Nigeria was fairly cumbersome. It might take a number of days and a lot of paperwork to get it sorted. It’s now not that arduous to register a business name in Nigeria.
As an investor or entrepreneur, business name registration is among the important necessities for beginning a business. Would you want to begin a business and in want of business concepts, examine this text to discover out some business concepts in Nigeria.
An investor will solely have an interest in a firm that’s duly registered. However, for an entrepreneur to make the business eligible for particular advantages both from an investor or authorities, it has to be registered as a firm. You’ll be able to refer to this submit for insights on how to discover the perfect investments in Nigeria.
In Nigeria, the establishment accountable for business registration is the Corporate and Affairs Commission (CAC). That is an autonomous physique established in 1990 beneath the Firms and Allied Issues Act. They’re charged with the duty of regulation and administration of firms in Nigeria.
As of October 2020, the Federal Authorities of Nigeria is giving out Free business name registration to 250,000 companies. Verify the video under to be taught extra about this.
On this submit, we shall be providing you with a step-by-step information on how to register a business name in Nigeria via the Corporate Affairs Commission (CAC).
CAC Merely means “Corporate Affairs Commission” and is a physique of the Nigerian Authorities accountable for the regulation and administration of firms in Nigeria.
How to Register a Business Name in Nigeria
Let’s take a deep dive into the method to registering for a business name with the CAC of Nigeria.
1. Select a Business Name and Verify For Availability
Selecting a business name will be fairly tasking typically. Your business name wants to be recognized with a model name. It will be important that you simply decide a name that’s related to your business.
It is best to do a fast search on the web on the names you select and have up to three backup plans. That is to guarantee you have got no less than chosen the names that aren’t in use to the perfect of your information.
You may as well use a platform like Namelix, a digital instrument to assist with discovering a name that matches your business.
2. Full Your Pre-registration Type to Register Your Business Name
Up to now, business name reservation on the CAC took days earlier than it got here again with a consequence. At present, it solely takes the identical day should you submit your request earlier than 5 pm and it prices simply NGN500.
When you wrap up with the name reservation, you may then proceed to the registration of your business name correct. Utilizing the net registration portal, you should have to full a pre-registration kind (CAC-BNo1).
3. Pay For a Submitting Price
Upon fee of the submitting payment, you’ll obtain a receipt of fee. Be aware, you can also make Cost straight from the web site portal or straight to the financial institution. The price of business name registration depends upon the kind of firm you are attempting to register.
4. Put together Your Paperwork For Add
You will want to put together a signed copy of the pre-registration paperwork and add a scanned copy to the web site for processing. The next are the necessities for registering a business name.
- Utility kind
- Submitting payment receipt
- Technique of Identification for the proprietors of the business.
5. Submit the Unique Copies of Your Paperwork
You’ll have to submit the unique signed copies of paperwork uploaded in step 4 to the CAC workplace. You’ll do that in trade in your certificates and the Licensed True Copies of the paperwork.
How A lot Does it Price to Register a Business Name in Nigeria?
- Registration of a non-public firm with a licensed share capital of N1m or much less, prices N10,000
- Registration of a non-public firm with a share capital of greater than N1m and up to N500m prices N5,000 for each 1m shares of the corporate.
- Non-public firm registration above N500m licensed share capital prices N7,500 for each 1m shares of the corporate.
- Public firm registration for the primary 1m share capital or fewer prices N20,000
- Registration of firm not having a share capital prices N20,000
4 Issues to Know About Corporate Affairs Commission (CAC)
A certificates of incorporation is a doc given by the businesses’ regulation company of a nation (in Nigeria’s case that is the Corporate Affairs Commission – CAC) as proof of the existence of a firm, and it’s proper to do business.
The certificates of incorporation is analogous to what a Start certificates is to a person. It signifies that the corporate not solely exists, but in addition is acknowledged by regulation.
Who offers it/who’s it given to?
The Corporate Affairs Commission in Nigeria offers the certificates of incorporation. For it to be legitimate, it have to be signed by the Registrar of Firms. The certificates of incorporation is given to these lessons of firms in Nigeria:
- Non-public Restricted Firm (LTD)
- Public Restricted Firm (PLC)
- Firms restricted by assure and
- Limitless Firms.
The minimal membership for every of those firms is 2 and the utmost for personal firms is fifty members whereas there isn’t any higher restrict for public firms. A minimal share capital of ten thousand Naira is prescribed for personal firms and 5 hundred thousand Naira for public firms with a minimal subscription of 25% of the shares.
When is it given?
There are numerous phases of a firm’s life when a certificates of incorporation is issued to it;
The apparent one being upon incorporation, that is pretty easy, you register your organization, after which as proof that your organization has been registered, you’re issued with a certificates of incorporation.
If your organization goes via the method to change its official name with the CAC, you can be issued with a new certificates of incorporation which exhibits the change of name.
When your organization undergoes some form of restructure, as an example in case your re-register your organization, you’ll most definitely be issued with a new certificates of incorporation. Re-registration principally means you alter the kind of firm, as an example your organization was a non-public firm but it surely has now grow to be a public firm or vice-versa, or was a firm which had limitless legal responsibility, however has now re-registered as one with restricted legal responsibility (or vice-versa).
Can it expire?
The validity of your organization’s certificates of incorporation is tied to the corporate. As long as the corporate continues to be legally buying and selling, the certificates of incorporation is legitimate. If nonetheless the corporate stops buying and selling, as an example it goes via the method for winding up of a firm as laid out in the Firms and Allied Issues Act.
Corporate Affairs Commission (CAC) Companies
Corporate Affairs Commission (CAC) Companies are labeled into segments:
- PART A – Registry
- PART B – Registration of Business Names
- PART C – Registration of Integrated Trustees (NGO’s)
Hopefully at this level, you’re totally outfitted with the information on how to register a business name in Nigeria.
Please word that you don’t want the companies of a authorized practitioner, chartered secretaries, or another third get together to register your business name.
The method of the CAC business name registration has been simplified to encourage participation from potential traders and entrepreneurs. One of many perks of registering a business name in Nigeria is that it makes you eligible to get monetary help from the Financial institution of Trade.
As well as to getting a business name, endeavor to get your distinctive tax identification quantity (TIN), as each business in Nigeria should pay tax. This can show you how to keep away from any hassles whereas attempting to elevate capital in your business.
Now that you’ve your business name registration beneath the belt, you have to to get business insurance coverage to assist hold your business afloat even in treacherous occasions.