How to Register a Business Name in Nigeria

Registering a business name in Nigeria with the Corporate Affairs Commission (CAC) is important for building trust so that you don’t forfeit your business name in the future. 

With the Companies and Allied Matters Act (CAMA) of 2020 in place to ease business name and company registration, you can handle the registration process yourself. In this article, you will learn steps on how to register a business name in Nigeria.

Understanding the Importance of Registering Your Business Name

Aside from forfeiting your business name, you could find receiving a loan difficult due to late company registration in Nigeria.

Let’s see the advantages you enjoy when you register your business name in Nigeria:

• Ease of opening a bank account for your business.
  
• Receipt of a certificate from the Corporate Affairs Commission after incorporation to show business authenticity and good reputation.
  
• Separation of business from the owner. Under the Nigerian law, a separate legal entity is treated as a person. It is important to register your business in Nigeria to separate your business’s profit and liabilities from yours.

Registering a business in Nigeria may take some effort, but it comes with several benefits and prevents you from paying unnecessary fines. Also, having a business name registered is a vital part of your brand development strategy.

Types of Business Structures You Can Register in Nigeria

Before registering a business name in Nigeria with CAC, you should consider the nature of the business.

You can choose any of the four structures for your business:

• Private Limited Company (LTD): A private company is a separate legal entity owned by shareholders where it cannot sell its shares to the public.
  
• Public Limited Company (PLC): Unlike the Private Limited by Shares company, a PLC can sell its shares to the public.
  
• Private Companies Limited by Guarantee: Private companies limited by guarantee do not have owners. They include companies, not-for-profits, social enterprises, or social clubs where members do not purchase shares.

The last type is the unlimited company, which is a company structure with no limit to the members’ liability. The company’s shareholders will use their money to pay its debts.

Conducting a Name Search to Ensure Availability

The first step in registering a business is to confirm that your business name is available. Confirm that you can reserve your business name by visiting CAC’s Public Search page.

Preparing for Your Business Name Registration

The Corporate Affairs Commission (CAC) has allowed business owners to register online, so you don’t need to download a business name registration form. After confirming that your business name is available, you should reserve your business name immediately.

The following are the steps to take to prepare for the registration of your business name:

• Visit the CAC Reserve a Name Page.
• Fill in Your Details.
• Click on the New Name Reservation Button.
• Fill in Your Details.
• You must enter two proposed business names in options 1 and 2 at this stage.
• Choose a Reason for Availability Search.

The last step is to pay the business name registration fee. Once you have cross checked each detail on the Preview page, it is time to pay the business name registration fee, which is N500.

Requirements for Registering a Business Name in Nigeria

After confirming your business name availability, you will need some documents for the business name registration.

You can check them below:

• National Identification Number (NIN)
• Registration Fee
• The address of the business
• Business Documents
• International Passport
• Birth Certificate
• CAC Application Form
• Passport Photograph
• Driver’s License
• Permanent Voters’ Card

After gathering these documents, visit the CAC Pre-incorporation Page. Sign in, fill in the business registration form, submit the above documents, and pay the required  ₦10,000 registration fee.

Timeline and Cost for Registering a Business Name in Nigeria

Registering a business in Nigeria is a two-step process. Firstly, reserve the business name before registering it with CAC. Since you can register and submit online, registering business names in Nigeria takes about 48 to 72 hours to receive your certificate.

The following tables explain the fees depending on the nature of the business you are setting up.

Name Reservation Fee

Type of Company	Amount
Limited Partnership (LP)	₦500
Business Name	N500
Limited Liability Partnership (LLP)	₦500
Incorporated Trustees	₦5,000

Business Name Registration Fee

Type of Company	Amount
Private Business Name Registration	₦10,000
Incorporation of Company Limited	₦20,000
Private/Public Company Limited Incorporation (Issued share capital of up to ₦ 1 million)	₦10,000
Private/Public Company Limited Incorporation (Issued share capital between ₦ 1 million and ₦500 million)	₦5,000 per ₦ 1 million share capital
Incorporation of Private/Public Company Limited (Issued share at least ₦500 million)	₦7,500 per ₦ 1 million share capital

Obtaining Your Business Name Certificate

According to the CAC, you must have paid the filing fee to receive your business name certificate. The CAC has introduced an e-certificate to make the lives of business owners easier. You no longer have to walk to a Commission to pick up your certificate of registration.

After completing your business registration with CAC, they need to approve it. Following their approval, the certificate will automatically be generated on your dashboard. You can download it at your convenience.

What to Do After Registering Your Business Name

After your business registration, some post-incorporation filings must be held at the CAC.

The following are updates to make after registering a business name:

• Filing an annual report
• Changes to the address of the company or other information
• Changes in the share capital of the company
• Resignation or replacement of a director

It is important to note that neglecting the above requirements may attract severe penalties. Not filing an annual report can cost your business.

Renewal and Amendment of Business Name Registration

If you want to change your business name or any facts, visit the CAC Post-Incorporation page. There, you should be able to perform the necessary changes regarding your business name registration.