Several Nigerians are pulling into entrepreneurship recently. People working with an organisation are planning to start a business or more.
The country’s inflation rate has increased the price of goods and services. Therefore, an 8-5 job might not be able to cater to all needs.
To this, many Nigerians have one business or more to increase the flow of income. However, a lot of these businesses are not officially recognized as an entity. Why is that? That’s because they are not registered with the Corporate Affairs Commission (CAC).
The body registers the name of businesses running in the country. Thus, businesses whose name is not registered can be regarded as unrecognised. Also, the company cannot be protected by the Corporate Affairs Commission.
To secure the future of your small or big business, continue reading this article as you follow the guide to get your business name registered.
There are different ways to register under the CAC. You could choose to register a business name, a Limited Liability Company, or an Incorporated Trustee.
While all these are good, they all have benefits attached to them. In this article, we would focus on how to register a business name and the benefits attached.
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Benefits of Registering a Business Name
A business name can also be regarded as an “Enterprise”. It can be registered as either a sole proprietorship business or a partnership. It’s all appended under the Part B of the Companies and Allied Matters Act (CAMA)
- A business name can easily be changed in the course of operation. Maybe after a few years of operation, the owner(s) may decide to register the company as a limited liability company.
- It is a small-scale setting that doesn’t require a process before decisions are made. It’s majorly for small businesses that don’t need a board of directors. You can’t own a small online business and expect to have a board of directors to make decisions.
- It doesn’t require much to register. Unlike others, registering a business name is not costly.
- A sole proprietorship business is encouraged. A single individual can walk to the CAC and register the name of a company.
- The tax ratio is bearable. A small business on its way to the top would have a great progression if a large part of the company’s income doesn’t go into tax.
- To conclude, it is easy to register and requires fewer formalities. You won’t be asked for tons of documents before approval.
There are other several benefits attached. A business name is the best way to register your business if you are just starting. You could change to a limited liability company depending on your wish and the growth of the company.
Steps To Register a Business Name
A decision to register a business name is a smart one. Follow this guide to register your business with the Corporate Affairs Commission.
- Step 1:
You have to choose two desired names and submit them to the body for verification. The agency will run the name against several others to be sure that the name is not in use. After that, a confirmation would be sent if the name is available. A maximum of 60 days would be given to complete the process of the registration before the name is withdrawn. This first step can be completed online.
- Step 2:
The second step is a continuation of the first step. It can also be done online. All that is needed is to complete some information that would be needed for the company. The details are:
- Approved name of the business
- Address of the business
- The nature of the business
- Signature of proprietors
- The name, address, occupation, and information about the proprietors.
- Step 3:
Making payment for the registration. The price varies depending on the time of registration.
- Step 4
Submission of the form is the next step to be taken. The CAC would run through the documents and approve the business.
You can’t continue to run a business without having legality to back it up. It doesn’t cost much to register a company’s name. Take a step today to step up your business.