Before starting any business in Nigeria, it’s crucial to confirm the availability of your desired business name. This step helps avoid potential legal issues and ensures your business’s strength.
This guide provides a step-by-step process for registering a business name in Nigeria.
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Step 1: Choose a Unique Business Name
- Ensure the name relates to your business. For instance, use keywords like couture, wears, or thread if you’re in the fashion industry.
- Make the name easy to pronounce and unique. This helps customers find you easily.
Step 2: Conduct a Name Availability Search
- Check if another business is using your chosen name. If not, you can proceed with registration. You can also conduct a name availability search on the CAC portal.
Step 3: Sign Up on the CAC Portal
- You can create an account on the CAC portal by entering your name, email, ID, and other required details.
- Reserve your business name for ₦500. Complete the registration within 60 days to avoid losing the name.
Step 4: Prepare the Required Documents
- ID card (driver’s license, voter card, or NIN)
- Phone number
- Passport photograph
- Residential address and proof of residence
- Business address
- Nature of business
- For partnerships, provide documents for all partners.
Step 5: Complete the Application Form
- Fill out the CAC application form for business name registration accurately.
- Ensure clear images are uploaded.
Step 6: Pay the Required Fees
- Calculate and pay the registration fees, which are around ₦10,000. Additional fees may apply if using an agent.
Step 7: Submit the Application
- Submit the completed form, required documents, and proof of payment to the CAC office or online.
Step 8: Collect the Certificate of Registration
- After approval, collect the Certificate of Registration as proof of your business name registration.
Step 9: Obtain a Tax Identification Number (TIN)
- Register for a Tax Identification Number (TIN) with the Federal Inland Revenue Service (FIRS) to strengthen your business’s legal standing.
Benefits of Registering a Business Name
- Legal Recognition: Having a business license provides evidence that your business is legally recognized, enhancing credibility with customers and partners.
- Access to Opportunities: Registration with the CAC opens doors to formal markets, contracts, and collaborations with larger organizations, government entities, and international partners.
- Dispute Resolution: CAC registration offers a framework for resolving legal issues and contract disputes.
- Access to Finance: A CAC registration certificate is often required to access grants and loans and attract investments.
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Conclusion
Registering a business name with the CAC in Nigeria protects your business from legal issues and opens opportunities for growth. To expedite the process, you can use authorized CAC agents, though this may cost between ₦30,000 and ₦50,000. Once registered, your business is ready to commence operations fully.
For further reading on obtaining a Tax Identification Number (TIN) in Nigeria, visit here.
