BUSINESS NAME REGISTRATION IN NIGERIA

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 1^st of October to the 31^st 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.