Have you ever felt it was high time you launched
your business idea but do not have adequate information on registering a
business in Nigeria? Or are you confused and do not know the most suitable
structure to choose for your business? Have you search everywhere, yet cannot
find a central resource to find answers to your pending incorporation-related
issues?
It is against this backdrop I am compelled to start a post on on this page where all related questions with regards starting and registering businesses in Nigeria can be discussed.
This post seeks to provide answers to some questions my clients who we helped to incorporate their companies frequently asked. It is worthy to note, however, that new policies regularly evolve at our nation's company registry - the Corporate Affairs Commission - so this write up is subject to regular update.
Enjoy reading!
Q1: What is a business name and why is it so important?
A business name is the name which a business trades under for commercial purposes. There is more to business names than just identity. A good business name is an advertising tool. Many large companies even hire expensive consultants to help them name their businesses, products and services.
Q2: I have this business name that I love so much, and I want to start a business under that name. Can I proceed immediately?
No. I think the next thing after you must have done a feasibility study on the business itself is to get the business name registered at the Corporate Affairs Commission (CAC).
Q3: What do you mean by Corporate Affairs Commission?
Registration of businesses in Nigeria is the exclusive responsibility of the Corporate Affairs Commission, also known as CAC; which has its head office in Abuja, and branches in most states of the federation. The CAC is the federal government agency responsible for registration of all companies.
Q4: But I was told that the cost of registering/incorporating a company is expensive. Can’t I go on with the business then register the name later?
My candid advice is No! Having your business registered definitely confers some credibility on it, given that it then acquires an identity. In many important business activities or relationships you may want to get involved in, details of your business registration will be required. You do not have to wait for such occasions before getting your business into the register of companies — you may miss an important opportunity just for that omission.
Q5: Is that all?
No. Using a business name similar or identical to that of a registered business name can land you into problems, including legal issues. Besides, if you have succeeded in doing business for several years under a name which has not been registered, that does not confer ownership of such business name on you. The CAC has to approve the availability of such a business name before you can proceed to file an application to get the name registered.
Q6: Does that mean I may forfeit a business name that I have been trading under and has become so popular in the marketplace just because I didn’t register it at first?
Yes. Due to your negligence, someone somewhere might have registered that name or a similar one. This means you will lose all the goodwill that name garnered over the years.
It is against this backdrop I am compelled to start a post on on this page where all related questions with regards starting and registering businesses in Nigeria can be discussed.
This post seeks to provide answers to some questions my clients who we helped to incorporate their companies frequently asked. It is worthy to note, however, that new policies regularly evolve at our nation's company registry - the Corporate Affairs Commission - so this write up is subject to regular update.
Enjoy reading!
Q1: What is a business name and why is it so important?
A business name is the name which a business trades under for commercial purposes. There is more to business names than just identity. A good business name is an advertising tool. Many large companies even hire expensive consultants to help them name their businesses, products and services.
Q2: I have this business name that I love so much, and I want to start a business under that name. Can I proceed immediately?
No. I think the next thing after you must have done a feasibility study on the business itself is to get the business name registered at the Corporate Affairs Commission (CAC).
Q3: What do you mean by Corporate Affairs Commission?
Registration of businesses in Nigeria is the exclusive responsibility of the Corporate Affairs Commission, also known as CAC; which has its head office in Abuja, and branches in most states of the federation. The CAC is the federal government agency responsible for registration of all companies.
Q4: But I was told that the cost of registering/incorporating a company is expensive. Can’t I go on with the business then register the name later?
My candid advice is No! Having your business registered definitely confers some credibility on it, given that it then acquires an identity. In many important business activities or relationships you may want to get involved in, details of your business registration will be required. You do not have to wait for such occasions before getting your business into the register of companies — you may miss an important opportunity just for that omission.
Q5: Is that all?
No. Using a business name similar or identical to that of a registered business name can land you into problems, including legal issues. Besides, if you have succeeded in doing business for several years under a name which has not been registered, that does not confer ownership of such business name on you. The CAC has to approve the availability of such a business name before you can proceed to file an application to get the name registered.
Q6: Does that mean I may forfeit a business name that I have been trading under and has become so popular in the marketplace just because I didn’t register it at first?
Yes. Due to your negligence, someone somewhere might have registered that name or a similar one. This means you will lose all the goodwill that name garnered over the years.
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