In this post, I will guide you through the whole process of registering a Business Name with Corporate Affairs Commission (CAC) in Nigeria. All the guides I have seen online did not cover all the steps in the registration process. I will cover everything in this post.
Before we start, I want to quickly clarify the difference between registering a Business Name and Company in Nigeria. On the most basic level, a Business Name is your trading name, that is, your business is not different from you. A Business Name does not assume a separate legal entity therefore it cannot sue nor be sued. You also cannot buy a property in the name of the business and when the owner dies, the business dies too. When you register a Business Name, you are solely responsible for everything about the business. If you intend to run a one-man business, registering a Business Name is usually the best option.
On the other hand, one person cannot register a company. At least two people is required. A company assumes a separate legal entity and it can sue and be sued. You can buy properties in the name of the company and the death of the founder does not necessarily affect the company because it has a life of its own. If you intend to establish a business with two or more people, then registering a company may be the best approach. The most common form of company is “Company Limited by Shares”. To learn more about the difference between a Company and a Business Name in Nigeria, read this article on LinkedIn by Eyitayo Ogunyemi.
Let’s dive into the steps involved in the registration process.
Search for the name availability
The first thing you need to do is to check whether the name of your business is available. To do that, go to the Public Search. Type the name of your business in the search box and click on search. If the name has not been registered, it will return an empty result. If the name has been registered, the search result will return the name, an address and the date it was registered. In that case, you have to think of another name as you cannot register a name that has already been registered.
Reserve the Name
The next step is to fill the name reservation form. You need to create an account on the Corporate Affairs Commission (CAC) website first before you can fill the form. To create an account, click here. Note that the address field on the signup form is not your business address. It is only your contact address. Thus, you can use any address there.
Click here to start filling the Name Reservation form (you must login to view the page). The CAC needs to approve the name before you can proceed. In my experience, the name approval usually takes between 2 to 3 working days. It costs 500 naira to submit the form. Note that the CAC has the right to disapprove your business name if it is offensive, misleading, or too identical to a name that is already registered. You will see the full list of things that can make them reject your name on top of the registration form.
The name reservation form
Register the business with your Name Availability Code
When the name you submitted is approved, you will receive an availability code which you will use to register your business. Click here to begin the registration. The first step is to enter the Name Availability Code given to you. After the code has been validated, you will be presented the registration form where you need to enter the information about your business. You need to print the registration form to sign it and attach a recent passport photo of yourself. Upload the form after signing it.
Your collection point is where you will go to collect the original Business Name certificate. Choose the closest place to you. Registering your business will cost you 10,000 naira as of 18.02.2019. You will have the option to request additional copies of the certificate before submitting the form. This is not necessary, but you can pay for the extra copies if you want.
Upload all documents
This is the final step. You need to upload the Business Name Availability Printout, Business Name Registration Form (FORM BN1), Means of Identification (e.g. international passport), and the Payment Receipt (RRR). The two other requested documents are applicable to foreigners only. Non-Nigerian citizens need to upload their Residence Permit and Proficiency Certificate. To begin uploading the documents, click here. Enter your availability code and choose your originating office to continue. The originating office is the place you will collect your original certificate. Select the same place you selected for the certificate collection point.
Next, you will see the field to upload the documents. Select the appropriate field under “Business Names (PART A)” and upload the corresponding document. Click attach and repeat the same step for all other documents you need to upload. You can only upload PDF file format. Remember to click the submit button only if all necessary documents have been attached.
Here you have it. The complete guide on how to register a Business Name in Nigeria. I understand that it may be difficult to take time out of your busy schedule to do the registration yourself. Don’t stress, this is where VisCorner.com comes in. We have professionals that can help you with all the registration process. All you need to do is Post a job and qualified professionals will reach out to you.
If you have any questions about registering your business, you can ask me in the comment section. I will reply as soon as possible. Please share this guide with your friends by clicking the social icons below if you find it helpful.
I am the founder of VisCorner.com, a platform that connects customers with reliable service professionals in Nigeria.