Doing business in Nigeria is one of the widely accepted and most embraced forms of raising money. This trend kicked off fully some years ago as Nigerians embraced the idea of engaging their hands rather than waiting for a salary structure which was never predictable.
As beautiful as this breakthrough seems, individuals with new business concepts are still trapped with a lot of questions ranging from how to carry out business best, how to ensure that increase is yielded and profit is made and most importantly how to register the business without spending so much. This work intends to aid a new business owner on how to register a business without a struggle.
Related Article: Top Benefits of Business Name Registration in Nigeria
EASY STEPS ON HOW TO REGISTER A BUSINESS NAME.
The steps to register a business name in Nigeria are simple and straight forward, and they include;
SELECTION OF A BUSINESS NAME.
The first step involved in the Registration of a new business is to select a business name. The name must be related to the kind of business you intend to carry out such that the name speaks for the company even before a prospective customer meets the business owners. Also, while selecting a business name, a business owner must put into consideration the rules guiding the selection of business name in Nigeria.
RESTRICTIONS IN SELECTION OF BUSINESS NAMES IN NIGERIA
When a new business owner is selecting a business name in Nigeria, one must ensure that no rule regulating the selection of titles for Registration and incorporation is violated. These rules are set by the Corporate Affairs Commission(CAC). These rules include;
· The name selected should be unique. This means that it should not be a name already in use by another registered business or an incorporated company.
- The name must not contain terms like Chamber of Commerce, Federal, National, State, Regional, Government, Municipal, Chartered, Co-operative, Building Society, Group, or Holding.
- Names must not contain terms which in the opinion of the Corporate Affairs Commission(CAC) can mislead the public.
- The name must not be contrary to public policy. Public policy is defined by the Corporate Affairs Commission (CAC).
- The name must not in the opinion of the Commission, violate any existing trademark or existing business name in Nigeria (unless consent from the owner is obtained).
AVAILABILITY CHECK/RESERVATION OF NAME.
The name selected is taken to Corporate Affairs Commission (CAC), and it is checked to ensure that is not a name currently in use by a registered business, and it is not contrary to any existing rule guiding the selection of titles.
At this point, a sum is paid to the Commission, and an approval or disapproval mail is sent subsequently. This mail either consents that the name-checked is free from encumbrance or the name is encumbered.
REGISTRATION OF THE BUSINESS NAME.
After approval of the name is gotten, you will proceed to the Commission and obtain another form (001) which must be filled appropriately. It is advised that a lawyer should carry on this procedure for you in order to avoid mistakes that will result in unending litigation tomorrow. After the form has been filled, you’ll proceed to pay a sum to the Commission which is called the registration fee.
The registration form requires details such as two (2) passport photographs, your personal biodata and that of your partner, passport photographs of your partner (if not a sole proprietorship), your address, telephone number, etc.
COLLECTION OF REGISTRATION OF BUSINESS NAME CERTIFICATE.
Upon total compliance with the procedure and correct filling of the prescribed forms, the certificate of registration of your business name is given to you. There is no specified time frame for the document to be sent. It takes a week for some people and a more extended period for others, depending on the peculiarity of the case. The entire process doesn’t usually take a long time.
Consequent on the above, it is clear that it is easy to register a company in Nigeria, however, if these procedures are not complied with, the grant of certificate of Registration may be delayed and in some cases denied.
On the other hand, I would advise that Registration of a new business name should be done with the aid of a legal Practitioners as this would curtail the problem of violation of the rules guiding Registration which usually ends in delaying and sometimes denial for reasons that could have been avoided.
Lastly, engaging the services of a legal Practitioners in registering a new business name would curb any form of future disputable issues steaming from improper documentation, application of the rules and Registration as a result of an inability to understand some of the questions on the site.
The cheapest way to register your new business is to engage a lawyer and consequently, never spend on resolving issues arising from improper Registration or engage a trial and error and keep spending to rectify the lapses that could have been avoided. Would you preferably go with a new dress or keep amending an old one?
Conceiving an idea to start a business is good, registering the business identity is better, but ensuring that the Registration is done correctly cannot be overemphasized.