Registering your business is always a step that shows that you are now serious with your business or business idea; but I discovered that many people don’t always know how to register business in Nigeria.
It is actually never easy to get a business registered in Nigeria due to the rigorous processes and protocols that are always involved, but recent advancement has reduced the stress of registratering a business in Nigeria, as you can now stay at your comfort and register your business with your phone or computer, without having to visit any office or agent.
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What Is Business Registration?
Business registration is a legal process that certifies the owner or operation of a business to the public. It helps to tell the public about the owner of a business and how the business operates.
Agency Responsible For Business Registration In Nigeria
Business registration is run in many countries, and each has their own agency in charge of the registration, likewise here in Nigeria.
So here in Nigeria, the agency responsible for registrateration of business is known as Corporate Affairs Commission (CAC).
CAC was established in 1990 and is an autonomous body that is entrusted with the responsibility of regulating the formation and management of businesses or companies in Nigeria.
CAC Affiliated Bodies
For CAC to carry out its responsibilities, there are affiliated bodies and members that helps them to achieve their tasks legally. So CAC caries out its function through accredited members of:👇
- Association of National Accountants of Nigeria.
- Institute of Chartered Accountants of Nigeria
- Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN).
- The Nigerian Bar Association (NBA).
CAC Offices in Nigeria
CAC has branches in all the 36 States in Nigeria, so if you want to visit their office for any reason; just seek for their office in that particular State you are.
What Are The Benefits of Registering a Business
You are not just registering your business because your friends or other people did, there are actually reasons, importance or advantages that surrounds a registered business:
- It gives you the legal right as the rightful owner of your business, both the brand name and operational methods.
- Customers always have special and great trust for any registered business.
- You can easily source for loans or grants if need be, and can as well stand a chance to get help or support from the government if need be.
- You can easily get investors to invest in your business.
Registering Your Business In Nigeria
have you been bothering on how to register business in Nigeria, bother no more as the new upgrade has made everything easy.
Whether you are registering your business online or offline; whether it’s a company, incorporate trustees or just a business name, you really need a brand name to get started.
So, the first and major step in getting a new business registered is by choosing a business or brand name.
How Much Does It Cost To Register A Business In Nigeria?
If you want to register your business online without involving any agent, the average cost of registering a business ranges from N12,000 for business name registration, and may be higher for company or incorporated trustees.
Note that this cost may be higher if you are registering through an agent or agents.
What You Should Know Before Choosing Your Business Name
One of the best strength of a business is having a good brand name. Even naturally, name is very important in our lives, in the sense that the kind of name we bear has the power to affect our lives.
Many business starters always make mistake here, thinking that choosing a business name is the easiest step in starting up a business. But this is actually a step that demands your time and your mind, in thinking out the best name that would give out the best in your business.
So while choosing a name for your business, you can look out for the following guides:
- Choose a name that would live beyond you, not the one that would die when you are no more.
- Make your business name to be very simple and easy for other people to remember.
- Choose a name that will last long.
- Choose a name that can be used as a domain name.
- Your business name should reflect to what your business does.
Different Classes Of Business Registration
In registering your business, there are about 3 classes under which they can be registered; all depending on the nature and type of your business you want to establish.
- Business Name
- Incorporated trustees
Business name registrateration is majorly for Sole proprietorship and partnership businesses.
A Business Name means the name and style under which a business is carried on.
A Sole Proprietorship is a business that is owned and run by only one person, while a Partnership business is one that is run by a minimum of 2 and maximum of 20 persons. Partnership is a business that is owned and run by two or more Individuals or Corporate Bodies or a combination of Individuals and Corporate Bodies.
A Business Name does not enjoy legal personality and never separate from the owners.
A Company is a business arrangement which enjoys legal personality; it is a corporate body and separate from its members (owners).
A Company may be public or private. The name of a Company must end with the word “Limited” or “Limited by Guarantee” or “Unlimited” or their abbreviations (“Ltd or PLC” or “Unltd” or “Ltd/Gte”)
An Incorporated Trustees is the registered trustees of a Not-for-Profit Association.
The objects of the Association must be religious, educational, literary, scientific, social, developmental, cultural, sporting or charitable.
The Trustees are the legal representatives of the Association and can acquire property, sue and be sued in the name of the Association.
Documents Needed For Business Registration
Whether you want to register your business online or offline, there are always some documents that you are required to submit or upload.
These documents are:
- Valid means of Identify (this could be National ID Card, Driver’s license, National Passport, Voter’s Card, and son on).
- Your passport.
- Memorandum and Article of Association
How To Register Your Business Offline In Nigeria
- Choose your business or company name.
- Meet or connect with a reliable practitioner. It could be a legal practitioner, a chattered accountant or both.
- Visit any authorized or accredited registrateration agency close to you.
- Collect the business registrateration form from the agency, fill it and submit with the required fee.
- Prepare a memorandum and article of association.
- Provide evidence of payment to the commission, and upload scanned documents for processing.
- Submit original uploaded documents in exchange for your certificate.
How To Register Your Business Online In Nigeria
In this section, we shall be discussing how to register business in Nigeria without visiting any office.
Having chosen a nice name for your your business or company, you can definitely get your business registered at your comfort, using your phone or computer, without visiting any office or agent.
It is actually very easy more than you may even think, just follow the procedures below:
Note: if you are using your mobile phone, you will have to turn your Web browser to “Desktop Mode, because some features of CAC website may not be displayed without the desktop mode.
Visit Their Official Website
Due to the recent upgrade on CAC, there may be some challenges trying to access their old website:👇 https://www.cac.gov.ng
Register/Create Your Account On Their Website
Before you would be able to proceed with your business registrateration, you must first have to create an account on the website.
Search For Name Availability.
Since there are a large number of people registratering businesses almost on daily basis, there are always chances that the business name you chose may have been registered by another person.
Meanwhile the money you paid for the name reservation is not always refundable if the name you chose was not available, which means you will have to pay for another name reservation.
So to avoid this waste of time and money, there is always need to search your chosen business name on CAC official website to know if it has been registered already by another person. If it has been registered, then you will have to choose another name or better modify the name.
Log in And Pay For Name Reservation
Once you have searched and made sure that your chosen business name is free and has not been registered by any person, then the next thing you have to do is to proceed to pay for your business name reservation.
For you to be able to apply and pay for your business name reservation, you must have to log in to your account on CAC website.
Normally, as long as you are applying directly through their official website, name reservation usually cost N500 to N600 only, which you may pay using your ATM or any other payment means.
After paying for name reservation, it usually take up to 2 days for it to be approved or rejected.
But if unfortunately your application was not denied for any reason, then you will have to fix the reason and apply and pay again for the name reservation.
Once your application is approved, your proposed business name will be reserved for you, and a reservation code will be issued to you which you will use during the main registrateration.
NB: Once your business name has been reserved, the name reservation would be cancelled after 60 days if you fail to proceed to the main registrateration.
Proceed To The Main Registration
Once your name has been reserved, you are now free to proceed and apply for the main registration of your business.
In this, you will be expected to upload your Identity Card (any valid one), your passport, and any other relevant document.
The cost of the main registrateration is usually N10,000, which you may pay through your ATM Card or any other payment means. After which you will have to wait for approval, before your certificate would be available for printing.
Though the advantages of registering your business are always enormous, the processes and protocols involved are always discouraging. Even when you have the money to pay for the registration, yet the stress is never easy.
But this stress can actually be reduced by deciding to register the business yourself, using your phone or computer; in this you may not have to visit any office or agent.
Many people always ask if registering a business online and registering a business offline are the same. But the truth is that both of them are the same. Even if you choose to register through an agent or CAC office, each of them would still have to go through the same procedure of online registration in order to register the business for you.