A lot of business minded people in this country go around doing businesses without really knowing the essence of getting reconised by law. i mean either registering their business names or icorporating a company. To this effect, I decided to iroduce this post to throw more light on this issue and probably get solutions to related issues.The advantages are ernomous. What have you to say about this

Well there are various advantages and disadvantages of registering a company or business name.

Generally a business name suits people who are interested in small scale and medium businesses e.g hairdressers, tailors or general blue collar jobs. The advantage of this is that you own all the profits and can keep a eye on things. Its generally a major factor for sole proprietors and those who want to start a business idea with little capital to make ends meet. Over the years you can upgrade your lifestyle with your business name and move into bigger things but still low scale.eg most of those generator dealers or carpet dealers in Apapa. General supply and distribution and movement of goods from a-b.

The start up registration fee is small and you can do it for less than 10,000 probably yourself at the CAC to get your business on the right track.

The Disadvantages On the other hand to me are huge especially if your a professional aiming for big business. With business names, you are stuck from moving up in the corporate world. It reduces the chances of you borrowing money from a bank or stock market to move your business. These days mega money is being splashed around for emerging businesses and nobody is going to give a person who has just a business name registration that money because it is totally unsecure.

Another bad thing about business name registration is that you suffer all the risks in a business and if you default, all your personal assets will be seized till you pay back what you ave defaulted in. While in a registered company, your personal assets are safe and its only the assets of the company that would be seized and valued according to the company alone. Although its a bad thing but that's how bank managers of failed banks got away with all the crimes because it was only the company's assets that were seized and not their own personal fortunes. So company formation is more secured.

Also in terms of operating in a big way, most companies would listen to a potential enterpreneur who is registered as a company as opposed to one with a business name. In fact investors will feel more comfortable dealing with a company than a business name owner. 

Also big businesses such as oil, insurance, finance, telecomms and a host of other big business always advetise for people to supply goodsand inventories for their big companies. One of the major requirements is that only companies registered can bid and auction to win contracts. Business name owners are definately out of the race with such stipulations.

My own advise is that if you really want to step up your business game in future, you should discard the business name formation now and just close your eyes and register the company. It would be there for life and when that big bingo time arises you wont be running helter skelter looking for how and when to register a company.

Funny enough its not as expensive as people think. The only problem is that for every day delayed, those bureaucrats at the CAC end up increasing it and adding one fee or the other. In short they make money from the procastination of potential registerars. I don't know about tomorrow but as for today and before christmas the price structure still remains the same. Pray the current world recession doesnt affect the CAC before next years budget unless we might be paying double for what is so cheap now!

Cheers!

Those interested in knowing the price can click on this link for further info:

https://www.nairaland.com/nigeria/topic-185768.0.html