3 Important Things To Know About Registering A Business In Nigeria
Many women have great business ideas and for this reason, so many are making good money from their various services and products.
With easy access to social media, it is really easy to sell things without bothering to register your business.
Yet, to do things the right way and to protect your interests it is advisable to have your business registered.
The Corporate Affairs Commission is the Agency empowered by the Company and Allied Matters Act 1990, Pursuant to section 659 to register business operation in Nigeria. It is the requirement of the law that you should register your business if you want to do legitimate business in Nigeria.
Depending on the magnitude of your business, you can register it all by yourself without the need of a Lawyer. The categories for business registration in Nigeria are:
(a) Business Name Registration
(b) Private Limited Company (LTD)
(c) Public Limited Company (PLC)
(d) Company Limited by Guarantee (LTD/GTE)
(e) Unlimited Company (ULTD)
(f) Incorporated Trustee
The process to follow in order to register your business name at the Corporate Affairs Commission is pretty straightforward and wouldn’t cost you much.
1. First thing is to do a name search and reserve it – CAC Form 1
- To conduct a search, the CAC now has an online portal, which individuals can use to search for and reserve a business name. You can search and reserve a name online here.
- You can also proceed to the Corporate Affairs Commission Office nearest to you and submit your business name for Name Search. Just walk into the place and obtain the CAC Form 1 for N200
- Fill the form correctly in CAPITAL LETTER – There is nothing much to fill, just your name, your address and The Names you intend to register, tick the type of company category you want to register as.
- You have the option one and two – Option one is your first choice name, while option two is the alternative name in case the first choice isn’t available.
- Make a Photocopy of the filled form before submitting it, the photocopy is what you will bring back to be used to locate your form.
- Submit the original and go back in three days to check if your name is available. If not, you will have to repeat the process all over again until you find one that is available.
Note: It’s important to note that when you are reserving a name (if not doing it online), you choose a name that is considerably unique (you should have at least 2 options). You should not use generic names, as they will most likely be taken already.
2. Step Two
- Once you checked and your name is available, begin the registration process immediately. Obtain the Business Name registration form for N250 and fill it.
- If it is a Limited Company you want to register, you will buy the set of Company Incorporation forms for N500. Download the PDF of the detailed requirement for Incorporated Trustees Under Part C of CAMA No.1 of 1990.
- If you are confused about what to fill in those forms, ask someone there to assist you. For a business name, it is really not difficult.
- For Limited Liability, it can be quite challenging but someone there can just be of help as long as you’ve provided all the requirements in the PDF downloadable above.
- If your name is not approved, you will have to obtain another reservation form and resubmit 2 names. Once you have successfully reserved an acceptable name and it has been approved, the next step is to obtain, complete and submit the duly completed statutory forms.
- You may either register the business as a sole practitioner or as a partnership with another individual.
- You will have to complete the form as appropriate with two passport-sized photographs of each applicant attached to the form (if you are starting the business as a partnership).
3. Payment of the applicable fees
Once you have completed all the applicable forms, you will have to pay the applicable fee for registering a business name. In total the fees you will pay at the CAC to register a business name are as below:
- Reservation of name – N500
- Business Name registration form – N250
- Fee for Registration of business name – N10, 000
Next, take your completed form to the Federal High Court or State High Court for attestation this will cost you N250 as well.
The entire process for registering a business name normally takes 2-3 weeks, depending on the caseload of the CAC and other factors. You do not need a lawyer to register a business name, however, if you want to register a company, you need the services of a lawyer or other accredited agent.
When you are through with that, return back to Corporate Affairs Commission office and submit your completed and attested forms. The first person will view it and sign on it and ask you to pass it to the next person who will type it into the computer and print it out for you to see and make amend if necessary.
Make your final payment for the registration into their UBA Bank account usually attached to all the CAC offices, so you don’t need to go elsewhere to make the payment.
When all these have been successfully fulfilled, your business will be up for registration and certification.
For Business Name – Go back for your Certificate after 8 working days or thereabouts. As for Limited Company, your certificate will be sent to you once it is ready.