How to Register a Business Name in 5 Fast and Easy Steps
Finding a business name is a crucial step towards entrepreneurial success. And when you have the name, the next step is to register the business name. Unfortunately, some entrepreneurs don’t consider why they should register a business name until it is almost too late.
Just like the name of a person, a business name is the surface identity and your primary brand item. Contrary to the opinion that registering a business name is difficult, you can complete it in 5 easy steps.
In Nigeria, the Corporate Affairs Commission is in charge of all business registrations. But you can begin the registration process through the Official Company Registration Portal.
5 Easy Steps to Register a Business name
Step 1 – Public Name Search
The first step to secure a business name is to do a public name search of the availability of your picked name. Choosing a name for your business is another process on its own, but you can quickly learn it.
You need to put two or three options in the search box if you can’t find the first one. But, choose a name that is
- Pronounceable
- Relevant to your business
- As unique as possible
If you find it challenging to find a business name, Namelix can generate some cool business names. Now, search for the availability of your selected name on the CAC portal.
Step 2 – Reserve the Found Name
You should have the results of your initial search in a few minutes. Before you proceed, ensure you check the three tabs of the displayed results, including business name, company, and incorporated trustees.
Now that you found a unique business name, reserve the business name by pre-registering it. In Nigeria, name reservation costs N500, and you can get the result on the same day.
You can then fill the pre-registration form to register a business on the CAC portal. However, if you are not ready to register the business, your reservation will still be available for 60 days.
Step 3 – Pay for the filing fee.
Now, pay your filing fee via the CAC portal by generating a RRR code or pay directly to the bank. Either way, you need to download the receipt of payment when it is complete.
Meanwhile, the amount you pay depends on which of the business registrations you intend to do. For instance, the three main categories are
- Business name
- Company
- Incorporated trustees
Step 4 – Prepare all required documents for upload
After completing the online pre-registration documents, you need to print a copy to sign. You will then upload the signed and scanned copy back to the sire for further processing.
More so, the required documents to upload are
- The completed application form
- Filing fee payment receipt
- A valid means of identification for each of the business proprietors
Meanwhile, you may need to keep a copy of the completed form for yourself before submitting it.
Step 5 – Submission of original copies of documents
While registering a business name, don’t forget to submit all original signed copies of the uploaded documents. This step is crucial in exchange for your business registration certificate.
After approval of your certified submitted original copies, keep checking the CAC site for updates and steps to take. Meanwhile, you will get a notification by SMS or mail when your certificate is ready for pickup.
Why do you need to register a business name?
You may also wonder why you still need to register your business, especially if it is already in operation. Before we learn how to register a business name, consider the primary benefits of a business name:
- Your business name is its identity.
- When you register your business name, you can build customers’ trust
- When you register a business name, you give it legal terminology. A registered business name is a legal identity that can operate under the appropriate laws.
- Corporate bank account opening, operation, loans, and grants require you to register your business name.
- All legal contracts and agreements require you to register a business name
- Official correspondence, including business cards, forms, and stationery, carry the name
- All sales, marketing, and advertorial material bear the name
- A registered business name can prevent police harassment
- A business name is helpful in setting up a domain name for your business website
- You cannot integrate payment into your site without registration of business name
- Social media account verification for corporate entities require registration
What does it cost to register a business in Nigeria
The cost of business name registration in Nigeria depends on the nature or type of business. But below are five main categories and their various prices.
- Business name registration of a company without share capital is just N20,000 flat.
- It costs N10,000 to register a private company with a share capital of N1m or less.
- If your private company has a share capital of N500m, registration costs N500 on every N1m share.
- A private company with a share capital above N500m will cost N7500 for every N1m share.
- Business name registration of a public company costs N20,000 for the first N1m share capital.
Conclusion
Finally, we sincerely hope to follow the five steps above to complete your business name registration. Moreover, you don’t need to pay any legal practitioner or another third party to register your business name. It may not take you more than a week if you do it yourself, depending on how busy CAC is.
Do you need any more clarity on any of the steps, ask us in the comments section below?
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