How Logical Is The Registration Cost Implication For Limited Liability Biz Name

Going by my experience, companies seldom do biz transactions with persons or firms without a Limited Liability Biz registration. Reason being that as a matter of cash control, payments are made via cheques and the government VAT deducted either directly from the Contractors balance payment by the company or through their banker whose cheque they issued him. Thats not all these banks still charge COT on every One Thousand Naira (N1,000) Withdrawn. Its a small amount but when spread over the number of biz account holders it yields a bulk sum and this the banks get for doing nothing.

Yet if one is to open a biz account with them for the first time after having paid the sum of Forty Five Thousand Naira (N45,000) to Corporate Affairs Commission (CAC) for a company accepted biz name, this same banks who profiteer from this type of accounts boldly ask for unreasonable initial deposit for a start.

my view of this practice is that the banks should ask for a minimum of Five Thousand Naira (N5,000) as this is enough to cover all the associated cost of opening the account and still leave a sum far above the least amount stipulated by the bank as its minimun balance which for current account in most banks is less than Two thousand Naira (N,2000). Secondly, since  these are biz accounts and not personal current account, the prospect for growth is higher and likewise the banks COT profits derived from any transaction done via these accounts.

On the side of CAC, the large registration fee it charges means it is against the government policy of private sector job creation through self-employment which in turn will employ and pay other people under the umbrella of of employees or artisans whenever it employs their services in the course of doing biz with companies. To be specific I witnessed a carpenter whose services after being sort after by a company did loose same job to a contractor who in turn hired another carpenter to execute the said job despite having bid far lower than the contractor since he is to do the job himself. The reason being that he has no current account registered biz name.

So Nairalanders What do you think is the way forward in this issue?