Business Name Registration in Nigeria: How to Register a Business Name in Nigeria

Business Name Registration in Nigeria has become a paramount concern to entrepreneurs in Nigeria.

In recent times, Entrepreneurs in Nigeria have come to understand that registering a business name for their businesses as they commence business in Nigeria is important for them. This becomes especially true given the stiff competition in the market across different sectors of Nigeria’s economy. Everyone wants to protect their investment, and choosing a business vehicle, be it company, business name, or partnership is the first step in the right direction.

Benefits of formerly registering your business in Nigeria

There are numerous benefits of formally registering your business in Nigeria as you commence business. Depending on the vehicle you choose, your business can have a separate legal entity from you. This will help you shield your personal assets from the business assets in case liabilities arise due to debts or lawsuits. This particular benefit do not accrue to Business Names, but registering your business as a business name has its own benefits as well, which we outline below:

• Legal recognition and protection: When you register your Business Name, you are accorded legal recognition as the owner of that name. You are also legally protected throughout Nigeria for the use of that name and no other entity or individual can use that name—you will then have the legal backing to halt anyone’s use of your Business Name.
• Eligibility for Operating Business Bank accounts with Nigeria’s commercial Banks: Owning a unique name for your business simply means that you have a certificate of registration for that name. With your CAC registration certificate, you can apply for a business bank account with any of Nigeria’s commercial banks of your choice. If you do not have a registered business name then you cannot open and operate a business account with any commercial Bank in Nigeria.
• You build trust with customers: A lot of Nigerians do not like paying for goods and services into the personal bank accounts of business owners. If they are not paying cash, or paying through POS terminals, they would prefer to pay money into the business account of the Business they are patronizing rather than a personal account. For this reason alone, registering a business is very important if not for any other purpose but to build trust with your customers.

The Agency Responsible for Business Name Registration in Nigeria

In Nigeria, the Corporate Affairs Commission is the Regulatory Agency that regulates businesses, corporations and business activities in Nigeria. It is also responsible for enforcing the provisions of the Companies and Allied Matters Act in Nigeria.

Types of Businesses that can Register a Business Name in Nigeria

1. Retail Traders
2. Wholesale Traders
3. Legal practitioners
4. Service providers

The list not exhaustive, though, and there are several categories of persons that can register a business name in Nigeria.

Documents and details required to register a Business in Nigeria

1. .Proprietor Details: Full name, service address (which shall comprise of full address, postal code, Local Government Area, City/Town/Village, State), residential address (which shall comprise of full address, postal code, Local Government Area, City/Town/Village, State); date of birth, valid Government-issued identity card, passport photograph, signature of proprietor.
2. Details of the Business: Type of business and services/goods it offers, proposed registered address of the business (which shall comprise of full address, postal code, Local Government Area, City/Town/Village, State), and proposed branch address (which shall comprise of full address, postal code, Local Government Area, City/Town/Village, State) if any.
3. Evidence of payment of filing fees with the Corporate Affairs Commission.

Steps to Register a Business Name in Nigeria

1. Conduct a Name Availability Search: The very first step when trying to register a business name in Nigeria is to conduct a Name Availability search with the Corporate Affairs Commission. The reason for this is simple: the Corporate Affairs Commission will never register two businesses with the exact same name, or register names that are so similar, it will cause confusion in the minds of the public. Thus, this important first step will reveal whether the business name you intend to register for your business operations is available and can be registered with the Commission. If it is available, hasn’t been reserved, or not in use by another person or entity, you can then proceed to pay for reservation of the name.
2. Gather all necessary information and documents.
3. Reserve the proposed Business names. You have to provide at least one name, you can also provide an additional name in case the Commission rejects the first name you selected for your proposed Business.
4. Upon approval of the reserved name, fill all necessary information, submit all documents in the required formats.
5. Pay filing fees to the Corporate Affairs Commission through Remita.
6. Await approval of the Business Name.
7. Upon approval obtain your Certificate of Registration and the E-Status Report which is the updated Form CAC 1.1. These forms are issued in electronic format—you can choose to have them printed for your records.

Timeline for processing a business name registration

Registration of business name—from name reservation to approval of registration—can take between 3 to 7 working days. The timeline is strictly dependent on the Corporate Affairs Commission approval.

Post-Registration Obligations and Actions

Upon successful registration of your Business Name, you can make post-incorporation applications and filings within forty-eight hours. You can file application to update your business information, for example: to change your business’s address, or to substitute your business name, as you wish.

There are post-registration obligations you should be aware of:

Filing Annual returns: Every registered entity in Nigeria must file annual returns as and when due. This is a matter of regulatory compliance which the Corporate Affairs Commission will not waive for you. Registered business names, companies, and incorporated trustees must file their Annual Returns as and when due; failure to file annual returns when due attracts penalties which must be paid before you can be able to make any post-incorporation filings with the Commission.  You are required to commence filing annual returns from the end of the eighteenth month of registration. Read this article: “How to file Annual Returns in Nigeria with the Corporate Affairs Commission” for more comprehensive information on annual returns compliance and filings.

How Kabbiz Global Nominees Limited Can Help

At Kabbiz Global Nominees Limited, we are Nigeria’s foremost providers of business registration, corporate governance and regulatory compliance services. We specialize in simplifying business registration, ensuring compliance with Regulations, and providing comprehensive support at all levels of your business existence. We carter to both local businesses and foreign corporations seeking market entry into Nigeria and we have served hundreds of clients, registered hundreds of businesses, and advised numerous companies. We also help you file your Annual Returns as and when due and file other post-incorporation applications to the CAC.

Contact Kabbiz Global Nominees Limited for professional assistance with your business name registration. We invite you to email us at [email protected] for assistance.