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How To Easily Register Your Business Name/Company In Nigeria: 7 Important Procedures And Requirements

Registering your business name or company is one of the crucial steps to formalizing your operations in Nigeria. It not only lends credibility to your business but also makes you eligible for government incentives, investor funding, and grants. The Corporate Affairs Commission (CAC) oversees the registration process, making it straightforward for entrepreneurs to register their businesses online.

In this updated guide for 2024, we’ll walk you through the process of registering your business name or company, the required documents, and some additional steps to ensure your business stays compliant with regulations.

Why Should You Register Your Business?

Registering a business in Nigeria offers numerous benefits:

• Legal Recognition: A registered business operates under the legal framework of Nigerian law, providing protection against liabilities and disputes.

• Access to Financial Opportunities: Registered businesses can secure loans and investments from financial institutions and investors, which is often not possible for informal businesses.

• Business Name Protection: Registering your business name ensures exclusivity, preventing other entities from using the same name in Nigeria.

• Eligibility for Government Programs: Registered businesses are eligible for federal or state government grants, tax incentives, and other growth opportunities.

Steps to Register Your Business Name in Nigeria

1. Create an Account on the CAC Portal

The first step in registering a business in Nigeria is to create an account on the CAC’s online portal at pre.cac.gov.ng. This platform allows you to complete the registration process from anywhere in the country. You will need a valid email address and phone number to sign up.

2. Name Availability Search

Once you’ve signed up, you’ll need to conduct a name availability search. This is to ensure that your chosen business name is not already taken by another entity. The search can be done on the CAC portal, and if your preferred name is available, you can proceed to reserve it.

The cost for a name reservation is usually around ₦500, and the name is reserved for 60 days. During this period, you must complete the registration process, or the reservation will expire.

3. Filling Out the Registration Form

After reserving your business name, the next step is to fill out the pre-registration form (CAC-BNo1). You will need to provide details such as:

• Your reserved business name

• Nature of the business (e.g., retail, services, consultancy)

• Proposed commencement date

• Personal information (name, address, nationality) of the proprietor or partners

• Passport-sized photograph

• Means of identification (e.g., National ID, Driver’s License)

If you’re registering a company, additional information such as details of the directors, shareholders, and company secretary will be required. For a company limited by shares, you’ll also need to provide details of the share capital and its distribution.

4. Payment of Filing Fees

After filling out the required forms, you will be prompted to pay the necessary filing fees. The fees depend on whether you are registering a business name (usually around ₦10,000) or incorporating a company (can range from ₦15,000 to ₦50,000 depending on share capital). Payment can be made online via the CAC portal.

5. Submission of Documents

Once the payment is confirmed, you will need to submit scanned copies of the required documents through the CAC portal. These documents typically include:

• The completed registration form

• A passport photo

• Means of identification

• Proof of address

• Evidence of payment

For companies, you will also need to upload:

• Memorandum and Articles of Association (if it’s a company limited by shares)

• Company resolution for corporate shareholders

• Stamp duty payment receipt

6. CAC Verification and Approval

After you submit your documents, the CAC will verify the information and process your application. This usually takes a few working days. Once approved, you will be issued a Certificate of Business Name or Certificate of Incorporation for companies. You will also receive a certified true copy of the application form.

7. Post-Registration Steps

• Tax Identification Number (TIN): Once your business is registered, it’s crucial to obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS). This is mandatory for all businesses in Nigeria and will enable you to fulfill your tax obligations. The process of obtaining a TIN can be done online via the FIRS e-services portal or by visiting their office.

• VAT Registration: Depending on the nature of your business, you may also need to register for Value Added Tax (VAT). This applies to businesses that provide goods or services and generate revenues above the VAT threshold.

• Filing Annual Returns: Both registered businesses and companies are required to file annual returns with the CAC. Failing to do so can result in penalties or even deregistration.

Documents Required for Business Registration in Nigeria

• Properly filled CAC-BNo1 form (for business names)

• Passport photograph of the business owner(s)

• Valid ID of proprietor/partners (e.g., National ID card, International Passport)

• Proof of address for the business (utility bill or lease agreement)

• Memorandum and Articles of Association (for companies)

Additional Services and Compliance

Once your business is registered, it’s essential to maintain compliance with Nigerian laws. This involves regular tax filings, remittance of VAT, and, for companies, compliance with other statutory regulations such as PAYE (Pay-As-You-Earn) for employees.

There are numerous service providers that can assist you with these post-registration tasks, including ReDahlia, which offers compliance services for monthly VAT filings, PAYE remittances, and more.

Frequently Asked Questions (FAQs) on Registering Your Business Name/Company in Nigeria

1. What is the Corporate Affairs Commission (CAC)?

The Corporate Affairs Commission (CAC) is the regulatory body responsible for the registration of businesses and companies in Nigeria. It oversees the registration, administration, and regulation of companies to ensure compliance with Nigerian business laws.

2. Why should I register my business in Nigeria?

Registering your business gives it legal recognition, allows you to access financial opportunities, such as loans and grants, protects your business name from being used by others, and helps you comply with tax laws in Nigeria.

3. What is the difference between registering a business name and a company?

• Business Name Registration is simpler and typically used by sole proprietors or small partnerships. It doesn’t offer limited liability protection.

• Company Registration (e.g., a limited liability company) offers limited liability protection, meaning the personal assets of the directors are separate from the business assets. It is suited for larger or more formal business structures.

4. How much does it cost to register a business name in Nigeria?

The cost for registering a business name is approximately ₦10,000. However, fees may vary depending on any additional services you might require or the type of business you’re registering (e.g., companies may have higher fees).

5. How long does it take to register a business in Nigeria?

The entire process typically takes 5 to 10 working days if all documents are in order and there are no discrepancies in the application. The duration may vary based on the workload at the CAC or if there are issues with name availability or document verification.

6. What documents do I need to register my business name?

You will need:

• A completed application form (CAC-BNo1)

• Proof of address for the business

• Valid identification (National ID card, International Passport)

• A passport photograph of the proprietor/partners

For company registration, additional documents like Memorandum and Articles of Association will be required.

7. Can I register my business online?

Yes, the entire registration process can be completed online via the CAC portal at pre.cac.gov.ng. The portal allows you to search for name availability, fill out forms, make payments, and submit documents electronically.

8. What is a Tax Identification Number (TIN), and why do I need it?

A Tax Identification Number (TIN) is a unique number issued by the Federal Inland Revenue Service (FIRS) to identify taxpayers. You need a TIN to comply with tax obligations, such as filing VAT returns and remitting taxes for your business. Obtaining a TIN is mandatory for registered businesses in Nigeria.

9. How do I obtain a TIN for my business?

After registering your business, you can obtain a TIN through the FIRS e-services portal or by visiting an FIRS office. Some service providers also assist with the process.

10. Do I need to file annual returns for my business?

Yes, all registered businesses, whether business names or companies, are required to file annual returns with the CAC. Failure to do so can result in penalties or deregistration of the business.

11. Can I change my business name after registration?

Yes, you can apply to the CAC to change your business name. However, the new name will also be subjected to the name availability search, and additional fees may apply.

12. What is the penalty for not filing annual returns?

Failure to file annual returns can attract fines and, in extreme cases, the CAC may delist the business from its registry, making it illegal to operate under that name.

13. What is the difference between VAT and PAYE registration?

• VAT (Value Added Tax) registration is mandatory for businesses that provide goods and services and generate revenues above a certain threshold. It ensures you charge and remit VAT to the Federal Inland Revenue Service.

• PAYE (Pay-As-You-Earn) registration is required if your business has employees. It involves deducting and remitting income tax from employees' salaries to the relevant tax authorities.

14. How can third-party services assist with registration and compliance?

Many third-party services, like ReDahlia, offer assistance with business registration, tax compliance (VAT, PAYE), and legal services. They can help simplify the process by handling document submission, tax filing, and other regulatory requirements

Conclusion

Registering your business name or company in Nigeria is a straightforward process that can now be completed mostly online. By following the steps outlined above, you can ensure that your business is legally recognized, protected, and ready to grow. The benefits of registration—legal protection, credibility, and access to funding—far outweigh the costs and effort involved.

Make sure to keep your business compliant by filing annual returns, staying on top of tax obligations, and renewing necessary licenses or registrations. For more complex registration or compliance needs, consulting a legal advisor or using a third-party service provider like ReDahlia can simplify the process