How to Register a Business Name in Nigeria: A Full Tutorial

Before starting any business in Nigeria, confirming if your desired business name is available saves you from potential issues.

Businesses have been sued for trading with a similar name, and often, they find it difficult to stand on their feet afterward.

To ensure you have full authority over your business, it’s essential to register your business name first.

This article will show you a step-by-step guide to registering a business name in Nigeria.

How to Register a Business Name in Nigeria

Step 1: Choose a Unique Business Name

You should consider these two things while researching a potential name for your business. First, make sure the name is relative to your business. For example, if you’re in the fashion business, you can consider keywords like couture, wears, threaded, etc.

Secondly, ensure your name is easy to pronounce, but get creative with it to keep it unique.

This would help your customers find you easily in the future since you’ll be keeping the name for a long time after registering.

Better yet, you can ask ChatGPT to help you with a cool business name.

Step 2: Conduct a Name Availability Search

A name search will tell you if there’s another business answering the name you’ve chosen. And if there isn’t, you’re at liberty to go ahead and register it as your business name. You can easily conduct a name availability search here on the CAC portal.

Step 3: Sign Up on the CAC Portal

You can create your account on the portal by filling in the required details, like your name, email address, ID, etc.

With this account, you will be able to reserve a business name. New businesses come up daily, so the moment you’ve confirmed your proposed name’s availability, you can reserve the name. This would cost you ₦500.

It’s expected that you claim and complete the process of registering this name before 2 months (60 days) elapse. Not meeting this timeline puts you at risk of losing your name.

Step 4: Prepare the Required Documents

Then start preparing the necessary documents needed to complete your business name registration in Nigeria.

These documents include:

• ID card: it could be either your driver’s license, voter card, or NIN.
• Phone number
• Passport photograph
• Residential address
• Proof of residence is required.
• Business address
• Nature of business

If the business you’re opening isn’t a sole proprietorship, where you’re the only one in charge, consider this. Alongside your documents, you’re expected to provide theirs as well to ensure that every important business detail isn’t left behind during the processing.

Extra Tip: If you’re not convinced about the commitment of your business partners, then don’t bother attaching their documents. This decision is as important as attaching their credentials when registering, as they’re an important part of your business as well.

Step 5: Complete the Application Form

Fill out the CAC application form for business name registration, providing accurate information about your business. Wrong typography can’t be corrected when you’ve submitted. Ensure your images are very clear while uploading them as well.

Step 6: Pay the Required Fees

Calculate the registration fees based on your type of business and make the necessary payment to the designated bank account. It costs ₦10,000 and other fees like updating your status report, which you’ll find on their fees page.

It can be higher than this if you’re working with an agent. While the online payment process is possible, some people prefer to work with authorized agents to facilitate the name registration process.

Step 7: Submit the Application

Submit the completed application form, along with the required documents and proof of payment, to the CAC office. If you processed it online, then you just wait for a message from them.

Step 8: Collect the Certificate of Registration

After your application is approved, collect the Certificate of Registration, which serves as proof of your business name registration.

Step 9: Obtain a Tax Identification Number (TIN)

Register for tax with the Federal Inland Revenue Service (FIRS) and obtain a Tax Identification Number (TIN) for your business. This also strengthens your business’s legal bonds.

Benefits of Registering a Business Name

The CAC business name registration in Nigeria is highly beneficial to you and your business in the sense that:

Having a business license provides tangible evidence that the government legally recognizes your business. This can significantly enhance your credibility, assuring customers and partners that they are dealing with a legitimate brand.

Being registered with CAC opens doors to formal markets, contracts, and collaborations. Many business opportunities, especially with larger organizations, government entities, or international partners, often require businesses to be registered with the appropriate authorities.

CAC registration not only provides legal recognition but also offers a framework for dispute resolution. In the event of legal issues or contract disputes, having a CAC registration can ease the resolution process and give you backup.

A CAC registration certificate is often a prerequisite for accessing finance and attracting investments like grants and loans.

Conclusion

Getting a CAC business name registration in Nigeria saves you from so many unexpected and ugly occurrences. It also prepares your business to embrace good deals like loans and grants to push you to bigger expansions.

To hasten the process of getting your business name, you may skip the part where you apply for it yourself. There are authorized CAC agents in every Nigerian state who are willing to assist with the processing of your documents. Going this way may cost a bit more, like between ₦30,000 and ₦50,000. Whichever process you decide to follow, business is set to commence fully once it’s ready.

FAQs on How to Register a Business Name in Nigeria

How Is a Business Name Registered in Nigeria?

A business name is registered on the CAC portal with a few documents, like two suggested names for your business. You just have to create an account on the CAC portal and follow the steps provided there.

What Are the Documents Required for Business Registration in Nigeria?

The documents required include your passport, ID card, business location, residency address, and other details regarding your business. If you’re not the only one in charge of the business, you need to provide the documents of others, too.

How Do I Know if My Business Name Is Registered With CAC?

When you search for your business name on the CAC portal, it’ll appear alongside your email address and phone number. You can also check if the status of your business is active.

How Much Does It Cost to Register a Business Name in Nigeria?

The standard fee to register your business is ₦10,000. However, this price varies as many agents have their own rates.