In this guide, i will be showing you the proceedures on how to register your business name legally in Nigeria with the CAC in easy steps.
Before anyone opens a business in any country, the first thing the person does is to make sure that the business is in line with the laws of the land.
In Nigeria, one is required by law to register his business with an agency called the Corporate Affairs Commission CAC, as this will give your business the legal bases for operation and hence, be recognized by law as a legal entity.
Section 571 (1) of the company and Allied Matters Act CAMA made it compulsory for every business (small, medium or large scale) to be registered with the corporate affairs commission CAC within 28 days of the said business’s operation. If your business has already existed more than this 28 days, don’t worry, you still have some time left to right the wrong.
If you are reading this article, chances are that you want to register your business name, but really don’t know how to go about the whole process right? If yes, just know that you are at the right place and reading the right article for that.
In this article, you will learn about how to register your business name online, the required documents to get ready, how to check if a company is registered in Nigeria, the cost of business name registration and also how to change your registered business name if you no longer wish to continue operating with the old registered business name.
These and many more are what you will be learning from this timely piece. And like always, there is a bonus information i will be showing you at the end of this article. So do well to stick around till the end.
Many Nigerians that are not in-the-know do make the mistake of paying an attorney to register their businesses for them. You see, that is quite sad.
What they don’t know is that when it comes to the registration of business names in Nigeria, just about anyone can do it, because the CAC has really simplified the whole process of business name registration in Nigeria 2020.
Without expending more time, let’s get started right away. But before then, what is the full meaning of CAC?
What Does CAC Stand For In Nigeria ?
The term CAC stands for Corporate Affairs Commission in Nigeria. It is a body that is established by law to regulate the opening and operation of companies and businesses in Nigeria.
Consequently, it is the CAC that oversees all business name registrations in Nigeria. Before the establishment of CAC by the companies and allied matters act CAMA in 1990, all business name registration and management used to be managed by the companies Act of 1968 (CA 1968)
Before this time, the registration of business names in Nigeria under the companies Act used to be difficult and tidious. But thanks to CAC that has made it much easier to now register business names with ease in Nigeria.
Requirements For Business Name Registration In Nigeria
Before proceeding to register your business name with the CAC in Nigeria, its pertinent to first know the list of required documents to get ready for the exercise.
There are certain documents required to be uploaded for CAC registration online.
Below is the list of documents required for business name registration in Nigeria with CAC:
- 2 recent passport photograph, clearly showing your (and if applicable, your business partners) face.
- At least 2 business name you wish to use (Any one of them could be used if available)
- A recognized means of identification by law; an international ID card, drivers licence, PVC etc.
- A description of the proposed business.
- Information about the owner of the business (Name, address, nationality, etc) which is duly signed.
Once these documents have been assembled, now you can proceed to the next phase of business registration.
How To Register A Business Name With The CAC Online In Nigeria
By now, you should have gathered the documents listed above for business name registration with CAC in Nigeria.
Below is the process to register a business name with CAC in Nigeria in easy steps:
- Business name availability check
- Formal application of business name registration
- Payment of business name registration
- Upload of required document for business name registration
- Collection Of Business Name original certificate
Business Name Availability Check:
If you decide to register a business name with the CAC, the first and most important thing to do is to chose a business name for your company, and then check for the availability of the chosen business name with the Corporate Affairs Commission CAC.
This search for business name with the CAC is quite a straight forward process.
The CAC has a website where you can go to check the availability of your chosen business name.
Simply head over to publicsearch.cac.gov.ng/comsearch and type in the name of the business you want to register. If its available, a CAC agent will have to carry out his own search to be sure if the said business name has not been registered by another person before.
If after this the business name is still available, you will be expected to pay the sum of N500 only for the business name to be researved for you in the next 90 days.
If its not availiable, then you should create another name and check for availability again.
Formal Application Of Business Name Registration:
Once the business name researvation has been completed after the availability check and the payment of N500, the next step will be to upload all the required documents for business name registration to the CAC portal.
See list of required documents for business name registration with the CAC above.
Payment Of Business Name Registration With CAC
Once your business name has been reserved for you, and the required forms submitted to the Corporate Affairs Commission, the next step will be to pay the required amount for the business name registration with CAC.
Some persons have ask, how much is the cost of business name registration with the CAC in Nigeria?
The cost of business name registration with cac in Nigeria is as follows:
|S/N||Business Name Registration With CAC||Amount|
|1||Business Name Reservation||N500|
|2||Business Name Registration Form||N250|
|3||Cost Of Business Name Registration||N10,000|
cost of business registration in Nigeria
In simple terms, the overall cost of business name registration with the CAC in Nigeria is N10,750, excluding your transport fare and the cost of photocopying your documents.
People have asked us, how long does it take for a business name to be registered with the CAC in Nigeria?
Ideally, business name registration with the CAC is not supposed to take more than 48 hours from the date of formal application. However, for logistic reasons, it can take up to 2 weeks to be fully ready.
Collection Of Business Name original certificate
Once the business name has been fully registered with the Corporate affairs commission CAC, you would be given the original certificate of your business name registration, which serves as a prove that you own that particular business.
Once you are done with this, congratulation as you have successfully registered your business name with the CAC.
How To Change A Registered Business Name With The CAC In Nigeria
Is it possible to change a registered business name with the CAC in Nigeria? yes, you can change a registered business name with a different name.
you may have registered a business name with the CAC and you want to change it for some personal reasons.
If yes, below are the easy steps on how to change a registered business name with the CAC in Nigeria:
- Search for the availability of the new business name you want to use on the CAC name search website via publicsearch.cac.gov.ng/comsearch
- If the new name is available, write a detailed application later, clearly stating the reason you want to change the business name to this new name, and sign.
- If the application is approved, then you are to return the original certificate of business name ownership of your formal business name to the CAC.
- Pay all the required fees for your new business name change which cost N10,750, excluding other miscellenous expensis.
- Wait for 48 hours or a bit longer to collect the new original business name certificate from the corporate affairs commission CAC.
If you have done this, congratulation on your new business name change with the CAC.
Benefits Of Business Name Registration With The CAC In Nigeria
Should i register my business with the CAC in Nigeria? This is a question that many business owners have been asking us for a long time now.
If you own a business in Nigeria or you are planning on opening one soonest, then you should endeavour to register the business with the CAC because there are many benefits of registering a business name with the CAC.
Below are the benefits you get for registering your business name with the CAC in Nigeria:
- Reservation of business name
- Ownership of corporate business name
- Business account
- Builds customers trust
- Access to loans and grants
These benefits will further be discussed below presently:
Reservation Of Business Name: One of the instant benefit you get by registering your business name with the CAC is the fact that you get to make that name your own for life.
Hence, you will be the only one entitled to own and operate a business with that name in Nigeria for life. If anyone dare tries to use that name without your express permission, you can sue the person for damages.
Ownership of Corporate Business Name: Once you have completed your business name registration with the CAC in Nigeria, you become entitled to receive a certificate from corporate affairs commission, which means that your business has become a corporate body in Nigeria with all its attendant benefits.
Business Account: Registering your business in Nigeriawith the CAC gives one the access to open a business bank account in Nigeria that bears the name of the business, and not the name of its founder.
Its only a registered business name with the CAC that can open a corporate account in Nigeria.
Builds Customers Trust: Customers generally feels saver doing business with a registered business brand than the unregistered ones.
And with this, your customers will have better confidence in doing business with you, knowing that the money goes into a registered companies account and not into a private account that bears your personal name.
Access To Loans And Grants: Registering your business name gives you access to loans and grants from financial institutions. Remember, the only prove you have that you own a business is by showing your business name registration optained from the CAC.
very financial institution requires this certificate each time you want to have access to laons to fund your business.
How To Check If A Business Or Company Is Registered With The CAC In Nigeria
How do I know if a business is registered with the CAC in Nigeria?
There are many fake businesses in operation within the shores of Nigeria. And at times if feels so difficult to know the legit ones from the fake ones.
Fortunately, there is a way to check if a company or a business is registered with the CAC for free.
To check if a business or company is registered with the CAC in Nigeria, simply do the following:
- Visit the CAC website through this link
- On the search box, type in the name of the business you are looking for its true identity
- Check the recatpcher box that says “i’m not a robot”
- Hit the search botton.
- If the company has been duly registered with the CAC, you will see the result on the window, clearly showing the RC number of the business name. If not, it will show no result was found.
Remember, while searching for the companies name, never put such terms as PLC, Ltd etc, only search the real name of the company. Example, Dangote and not Dongote PLC
There is no harm in making your business legitimate in Nigeria, and the first step in achieving that is by registering the business name with the CAC.
The cost of registering your new business name with the cac is only N10,750 provided you follow our guide above and doing it yourself. Once registered, you will be assured that no person in Nigeria can register the said name ever again. So its worth it completely.
With all the benefits of having a registered business name in Nigeria, you really cant afford to miss one of it, would you?
Thanks for reading this article. If you still have any further question, kindly use the comment section below, and we can tag along from there.
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