BUSINESS
NAME REGISTRATION IN NIGERIA.
Are you
starting, about to start, or have been running a micro, small and medium
enterprise, I advise you register your business today if you are yet to do so. It
is important you register your business name right away for the following
reasons:
REASONS WHY
YOU SHOULD REGISTER YOUR BUSINESS NAME.
1. It is a legal requirement for those doing
business in Nigeria. Sec 573 of the Companies and Allied Matters Act (CAMA) provides
that every individual, firm or corporation carrying on business under a
business name shall be registered. It is a legal necessity to register your
business name.
2. An unregistered business name can be
registered by another person
3. Any person who registers a business name has
exclusive right over the name. The fact that another person has been using the
name for decades before the name is registered by another will not affect the
exclusive right of the registered owner over the name.
4. It is easier to get bank credit and
investment from investors. A bank cannot give a business loan to a business
that is not registered. It is the same for investors.it is also not advised to
wait till when you need the loan before registering the business name. Most
banks and investors confirm the growth of the business through the business
account before granting loan.
5. A business account cannot be opened without
the certificate of business name registration.
6. Registering your business makes you look
serious and will attract more customers.
7. The Federal Government has slashed by 50% the
cost of business registration from the 1st of October to the 31st
of December 2018.
WHEN DO I
REGISTER MY BUSINESS IN NIGERIA.
Sec. 574 of
CAMA provides that every individual, firm or corporation doing business in
Nigeria under a business name SHALL within twenty eight (28) days after the
commencement of business or within three months after the commencement of CAMA
register its business name with Corporate Affairs Commission.
REGISTRATION
OF CHANGES IN THE PARTICULARS REQUIRED BY CAMA. Sec. 577 CAMA.
Where a
change is made in the registered name of the business, the object of the
business, the address and the registered proprietors of the business, the
individual or firm carrying on business in that registered name is legally
obligated to notify the Corporate Affairs Commission (CAC) within twenty eight (28)
days after such change is made.
CONSEQUENCES
OF NOT REGISTERING YOUR BUSINESS NAME OR CHANGES MADE.
Where an individual, firm or corporation fails
to register their business name or fails to register any changes made in the
particulars presented to CAC in the course of registration, or carry on
business under a business name that has been refused or cancelled by CAC, every
partner in the firm or the individual commits an offence and shall be liable on
conviction to a fine of 50 naira for everyday the default continues.
Hope you
find the information helpful. Thanks.
Please note that the
information provided is not intended to be a legal advice. No lawyer-client
relationship is formed nor should it be implied. This answer is not
intended to substitute for the advice of a qualified lawyer.
