Are you thinking of doing business in Nigeria or are you a budding entrepreneur, then you must have your business registered with the Corporate Affairs Commission (CAC). The law requires that you must register your business before doing legitimate business in Nigeria.

The categories of business registration in Nigeria are:
(a) Business Name Registration
(b) Private Limited Liability Company (Ltd)
(c) Public Limited Liability Company (PLC)
(d) Company Limited by Guarantee (LTD/GTE)
(e) Unlimited Company (ULTD)
(f) Incorporated Trustees (IT)

The different categories have their benefits depending on the type of business you want to deal in.

Aside from being on the right side of the law, some other benefits of registering your business include:

(a) Registering your business helps you secure your business name before someone else takes it. Once you've successfully registered the name of your business with the CAC, no other entity can lawfully use that same name to carry on business in Nigeria. That name is reserved for you and only you.

(b) Registering your business adds seriousness and authenticity to your business. It makes you feel more responsible and work harder in establishing your brand. You will be taken more seriously by business partners. A good majority of big firms or individuals will be reluctant to deal with you if you've not registered your business.

(c) You will only be able to open a corporate account with your business name only if it's registered and of course you know the importance of having a corporate current account - it makes people feel more relaxed when dealing with you.

Those are just a few of the reasons why you should register your business, now let's go to how to go about registering your business with the CAC. Previously, it used to be possible for an individual who has not been accredited by the CAC to, at least, register a business name. But now, things have changed. You must be accredited before you can even enter into the CAC complex to transact any business. This accreditation is only reserved for lawyers, chartered accountants and a few other persons. Thus, if you need your business name registered, you must retain a competent individual who has been duly accredited by the CAC to help you carry on the process.

As an accredited and experienced CAC practitioner, I'm here to answer all your queries concerning your business registration with the CAC. Contact me on kevinaduga@yahoo.com or post your queries here.

Cheers!

What's the major difference between registering a business name and a Ltd? And what's the cost of Ltd?
Got a business name registered already will like to know if I can change the nature of business on it??

efilefun:
What's the major difference between registering a business name and a Ltd? And what's the cost of Ltd?
Got a business name registered already will like to know if I can change the nature of business on it??

difference:when you are indebted or liable to your creditors and the court comes, every of ur personal belongings including the dress u wear to the courtroom will be sold/auctioned to pay ur debt in case of biz name. but for ltd coy the court is confined to the assets in the coy's name because it is an entity. ltd coy is about N20k for registration if i remember correctly

FreeBoss:
difference:when you are indebted or liable to your creditors and the court comes, every of ur personal belongings including the dress u wear to the courtroom will be sold/auctioned to pay ur debt in case of biz name. but for ltd coy the court is confined to the assets in the coy's name because it is an entity. ltd coy is about N20k for registration if i remember correctly

Thanks for the info, do you have any idea if I can change the nature of business on the certificate?

efilefun:
Thanks for the info, do you have any idea if I can change the nature of business on the certificate?

Yes, you certainly can. All you need to do is file the necessary application (notice of change in registered business name objects). However, you won't be issued a new certificate. But you will have a ctc of the application as evidence that your business' objects has changed.

Cheers!

Do you know that in Africa, up to 70 percent of people who regard themselves as ‘entrepreneurs’ do not own a registered business.


What Is A Registered Business?

The best way to describe a registered business is to tell you a short story.

Fred is an entrepreneur who makes very beautiful shoes for men and women with the best quality leather. This has been his line of work for seven years now and thousands of people love his shoes.

Infact, his shoes have become so popular that people commonly refer to it as ‘Fred shoes’. People actually go to the market and ask for ‘Fred shoes’. Most of his customers are so loyal that they will not wear any other brand of shoes (local or foreign) except for Fred’s shoes.

Just last year, one smart entrepreneur (let’s call him John) caught a bright idea and decided to register a company and named it “Fred Shoes Company”.

It cost him time, effort and money but John went through the hassle to register his new company. Guess what? His new company makes shoes too. These shoes are also of high quality but they’re not as good as the popular Fred shoes.

But the interesting thing is, John’s company’s shoes are labeled ‘Fred Shoes’.

As you may have guessed, Fred finds out that John’s company is selling its shoes with a ‘Fred Shoes’ label. What can he do?

If he does nothing, these new shoes that carry his name will confuse his customers and he could lose sales. So he decides to sue John’s company “Fred Shoes Company”.

Who do you think will triumph when this matter goes to court?

The facts of this case are quite simple:

One person (John) owns and runs a business that is legally registered and recognized by law. The other person (Fred), although running a very successful but unregistered business, has become a victim of his own mistake. He owns and has been operating a business that doesn’t legally exist.

This is a sad example of the kind of unfortunate things that could happen when a business is not properly set up and registered.

It is often tempting to postpone or think that business registration can wait or is not really important.

The truth is, you may be building something that could become very big and popular in the future. However, if you don’t do something as basic as registering your business, all your hardwork could easily be wasted, or worse, taken over by somebody else.

In summary, this story teaches us (with a hard lesson) exactly what a registered business is. It is one that legally exists and is recognized by law. It is one that enjoys certain rights, benefits and privileges that an unregistered business cannot enjoy.

Few Questions

1. Is it possible to change an already registered Business Name to LTD
2. Is it possible to register a new business name with a name close to another previously registered name but the same individual. (Eg. Already registered EWIZARD CONCEPTS but would love to register EWIZARD GROUP)
3. Is is permitted to engage in more services that was not included or related to in the Nature of Business of a registered business name. (Eg. Registered EWIZARD DESIGNS and later want to also go into Laundry Services under the same Business Name)

Thanks

ewizard1:
Few Questions

1. Is it possible to change an already registered Business Name to LTD
2. Is it possible to register a new business name with a name close to another previously registered name but the same individual. (Eg. Already registered EWIZARD CONCEPTS but would love to register EWIZARD GROUP)
3. Is is permitted to engage in more services that was not included or related to in the Nature of Business of a registered business name. (Eg. Registered EWIZARD DESIGNS and later want to also go into Laundry Services under the same Business Name)

Thanks

1. Yes, you can certainly re-register your business Name to a Ltd.

2. Yes, you can use a name similar to your existing business Name. All you need is a letter of consent to use a similar business Name. But please note that there are certain requirements when you want to add "group" to your company name.

3. No. You can't engage in businesses that are not derivable from your objects. Unless, you have "general contracts" as an object in your business Name. But this still has its limits.

Cheers!

ogalawyer:


1. Yes, you can certainly re-register your business Name to a Ltd.

2. Yes, you can use a name similar to your existing business Name. All you need is a letter of consent to use a similar business Name. But please note that there are certain requirements when you want to add "group" to your company name.

3. No. You can't engage in businesses that are not derivable from your objects. Unless, you have "general contracts" as an object in your business Name. But this still has its limits.

Cheers!

Thanks sir.

efilefun:
Thanks for the info, do you have any idea if I can change the nature of business on the certificate?

yes for ltd liability with associated fees paid. but cac is stricter now if the object you is materially different from the main objectives

Best businesses: http://www.practicalbusinessideas.com/small-business-ideas-in-nigeria/

This will interest you https://www.nairaland.com/3725490/7-reasons-must-register-business#55303691