Business Name Registration in Nigeria 2024

eLegal July 4, 2024 Blog, Nigeria

The Companies and Allied Matters Act (CAMA 2020) under part B makes explicit provisions on the registration of business names. A business name when registered does not possess the peculiarities of a registered limited liability company, and also does not have shareholders and directors but rather proprietors.

Business name registration is more often than not done by entrepreneurs and small-medium business owners. The registered name provides a business with the full rights to function as a brand in Nigeria.

Required Steps to Registering a Business Name in Nigeria

The initial process is to decide the name of the business and reserve such name with the Corporate Affairs Commission (CAC) which is done online. Once the application is received and the name gets approved by the CAC, it goes ahead to reserve the name for sixty (60) days to allow the business owner to complete the business name registration process.
The next step is filling out the business name registration forms. The following is the information required to be filled;

Approved name of the business by CAC
General purpose and nature of the business
Address of the business
Name, address, occupation, and other important details of the proprietors of the business
Signature of the Proprietors
The third action is to make an online payment of the CAC filing fees.

The final stage is submitting all requested forms online and CAC will review the application. If everything is in order, the applicant will be notified by CAC of the approved application and issue a certificate of business name registration.

Documents Required for a Business Name Registration

National Identification Number of the Proprietor(s)
Registration fee required by CAC
Address of the business
Business Documents
Internation passport of
Birth certificate
CAC application form
Driver’s license
Permanent voter’s card
Passport photograph

Benefits of Registering a Business Name

There are tremendous benefits that come with registering a business name but here are some below;

It allows the ease of opening an account for the business
The authenticity and good reputation of the business is improved by the receipt of certificate from CAC
The business if registered as a business name gets to be separate from the owner which will help the owner separate his business profit and liabilities from his own.

Conclusion

Business name registration in Nigeria takes a minimum of one week to be completed though largely depending on the schedule of the CAC it could take more time than that. After reviewing the application for business name registration, the CAC may query the application if it finds something crucial missing in the submitted application.

To avoid queries and waste time on business name registration, it is advised that business owners seek professional assistance from lawyers.

We at eLegal Consultants can offer our service on business name registration and any type of services regarding company incorporation in Nigeria. We also offer other legal services on immigration matters, family law, dispute resolution, property law, anti-money laundering, and a host of others in the United Kingdom, Asia, the Middle East, and India.

We at eLegal Consultants look forward to meeting you and are ready to journey with you to actualize your dreams. Contact us today.

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Business Name Registration in Nigeria

Need clarity on the form of registration you should proceed with, our consultants are ready to assist you through the entire process.

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Public Limited Company
Companies limited by guarantee
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How it Works

Nigeria operates a central system; therefore, a company can only be registered with the Corporate Affairs Commission (CAC). Often times, business owners find themselves caught in a dilemma and without adequate consultation and guidance, they may end up registering the wrong form of business and creating for themselves a long lasting problem.

Our expert consultants are dedicated to providing you with excellent service needed to successfully register your company.

How it works

Step One

Contact us through our WhatsApp chat, web form or our toll free number, stating your full contact information, the service you would like to be provided and a request for a quote from our expert consultants.

Step Two

Receive and review our quote alongside the details of the legal service to be provided, approve the quote and pay through any of our listed reliable payment system.

Step three

Receive a fast and reliable delivery of the legal advice and documents from our expert lawyers.

At eLegal Consultants, we provide faster, convenient and affordable legal services in a click of a button.

Do you need assistance with any of your legal issues? Contact us today.

Nigeria operates a central system; therefore, a company can only be registered with the Corporate Affairs Commission (CAC).

Both local and foreign owned companies in Nigeria are registered via the same procedure. The only difference with the latter is that, the foreign owned company should be registered with a minimum of N10 Million share capital. The advantage of this is that the company will be able to obtain the expatriate quota required to obtain work permits for its foreign employees including directors.

Types of Companies in Nigeria

There are different types of company formation allowed under the Nigerian company law. For an entrepreneur, a private limited liability limited is the best form of company to register in Nigeria, given its various benefits and straightforward registration procedure. Be that as it may, the following are the types of companies that can be registered in Nigeria:

Private Limited Company
Companies limited by guarantee and
Unlimited Companies.

Any of the three types of companies may be registered either as a private company or public company. Nevertheless, registration as a public company has its ups and downs. Therefore, practically, the Corporate Affairs Commission (CAC) has stated the four types of companies that may be registered in Nigeria:

Private Limited Company (LTD)
Public Limited Company (PLC)
Companies limited by guarantee and
Unlimited Companies.

It is noteworthy that most of our clients opt for a Private Limited Liability Company registration. A private limited liability company has several advantages, which include but limited to perpetual succession, limited liability, and separate legal personality. Above all, it is the only form of company that can easily and be swiftly registered in Nigeria.

As for the Public Limited Company, the high threshold statutory requirements attached to its formation make it unattractive for individuals starting a new venture. In addition, public limited liability companies are subjected to various external laws for it to operate.

With respect to the Company limited by guarantee, it can only be set up with the approval of the Attorney General of the Federation. Although a company limited by guarantee may also be used for profit, it is seldom used as profit-oriented in Nigeria, but rather for a special purpose such as corporate social responsibility or charity. An unlimited liability company on the other hand may should be used to represent a parent company desiring to have a subsidiary with unlimited risk.

Requirements of a Private Limited Company

Minimum of 2 directors – a single parent company or foreign company seeking to register a subsidiary in Nigeria may nominate two persons as directors of the new company or subsidiary.

Documents and Particulars required

Name of the proposed company (two to four names are to be submitted by the applicant: the proposed name of the company and alternative names)
Objects of the proposed company (summary of the activity or business the company intends to engage in).
Names, addresses, and email of the shareholders( the shareholders can also be the directors
The ratio of the company shares among the shareholders.
Names, addresses, and emails of the first directors of the company (the same shareholders are qualified to also be directors).
Copies of the means of identification of the shareholders and directors, such as driver license, international passports e.t.c
Duly verified particulars of the director and statement of share capital
Duly stamped Memorandum and Articles of Association

Procedure for company registration in Nigeria

Registration through a registered lawyer is mandatory.
The availability check and reservation of the name of the proposed company must be conducted with the Nigerian company’s registration agency, Corporate Affairs Commission (CAC).
The legal practitioner prepares the necessary incorporation documents and completes the incorporation forms obtained from the CAC.
The individual completes all the incorporation documents.
The payment of the prescribed fees will now be duly made and the incorporation documents immediately stamped.
The stamped incorporation documents will now be duly uploaded into the CAC online portal again for the final review of the commission.
If all the incorporation documents are well completed and executed, the commission will incorporate the company and issue an incorporation number immediately.
Certificate of Incorporation and the Certified True Copies of the other documents will be issued by CAC and received by the legal Practitioner, in less than 48 hours after the company is duly incorporated by CAC.

Cost of Company Registration in Nigeria

The cost of company registration in Nigeria depends on the number of the share capital of the proposed company to be registered. The higher the share capital of a company, the higher the filing fee and stamp duty payable to the government.

The professional fees that is charged by us for processing the registration is cost-effective and competitive.

Business Name and Incorporated Trustee Incorporation in Nigeria

Besides the private limited liability company and the three types of companies stated above, there are other forms of incorporation that can be conducted with the CAC.

These types of incorporation include business name registration-which is suitable, for small-scale business owners, and does include separate legal personality and Incorporated Trustees, also known as Non-governmental Organization(NGO), which is relevant for the religious organization, social clubs, and charitable foundation.

If you are unsure of the form of Registration to proceed with, our Consultants are always ready to assist you. You can be assured that we will stick with you from inception till you receive your certificate.

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Business Name Registration In Nigeria