How To Register A Business In Nigeria 2019 Guide
How To Register A Business In Nigeria 2019 Guide.
If you’ve always wanted to register a business, this article will guide you on how to register a business in Nigeria this 2019. There, many entrepreneurial are churned out on a daily basis. However, it is important to take some things into cognizance as you are about to start your business. Apart from the capital and the nature of a business, a fundamental issue to be considered is a business name. This is required to distinguish between business owners and entities.
It will be recalled that the Commission under its Business Incentive Strategy (BIS), had reduced the cost of Business Name registration from N10,000 to N5,000 for a period of three months (October 1 to December 31, 2018).
A statement by the Deputy Director, Public Affairs, Moses Adaguusu, explained that BIS was aimed at creating a window for MSMEs to formalise their businesses to enable them own corporate account with banks, access to loans, grants and other government interventions.
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He further explained that upon the expiration of the initial three months window, the Commission received several requests from states and other agencies seeking extension of the 50% fee reduction promo.
“In view of the benefits of BIS coupled with the demand for extension by stakeholders it became imperative for the Federal Government to further extend the period by another three months (1st January-31st March, 2019) to enable more MSMEs formalize their businesses.
“Following the Commission’s request for extension, the Honourable Minister of Industry, Trade and Investment graciously approved a three months extension of the BIS for registration of MSMEs from 1st January to March, 2019″.
That being said, applying to get a business registered is identified as legitimate in Nigeria. One has to go through some steps while registering a business name with the Corporate Affairs Commission (CAC). This is the agency tasked with the registration of business names in Nigeria. The steps to be taken include:
How to Register a Business in Nigeria – Steps to be taken
1. Searching and reserving a name
One has to search for a business name to ascertain its availability. This is quite important because a business name conflict has to be averted. It is not unlikely that common names have been registered by other people. After searching for a name and discovering it is available, one can reserve the name to ensure that it isn’t taken by another individual. Searching and reserving a business name can be done online here.
It is important to note that there are certain restrictions put in place and they are as follows:
- Names that include “Federal”, “Regional”, “Chamber of Commerce”, “Co-operative”, “Municipal”, “Chartered”, “Building Society”, “Group” or “Holding” are prohibited from being used.
- If the commission feels a name can be misleading or the objective of the business activities is unwanted, illegal, offensive or not acceptable by the society, they reserve the right not to register the business name.
- Unless trademark or business name owner has consented to its use, the commission shall not register an existing trademark or business name.
2. Purchasing and Completing the Application for Business Registration form
In a situation whereby a business name is not approved, one has to obtain a new reservation form and resubmit 2 different names. Immediately an acceptable name has been reserved successfully and approved afterwards, one has to get, fill and turn over duly completed statutory forms.
Registration of a business name can be done by an individual or by 2 partners. In the event that there is a partner, one has to fill the form and attach 2 passport-sized photographs of each applicant.
3. Payment of fees
After every necessary form has been filled, an individual or partners have to pay the provided fee to complete a business name registration.
Below are the required fees to complete a CAC business name registration:
- Reservation of name – N500
- Business Name registration form – N250
- Fee for Registration of business name – N10, 000
4.Take the acquired form to a High Court
The form received after the registration of a business name needs to be taken to court for attestation. After the attestation letter has been collected, you are required to go back to the Corporate Affairs Commission to submit it. The next process will be guided by their personnel.
5. Certificate of Registration
After the business has been registered, a certificate of registration shall be issued usually within a week if the business is a limited corporation.
There you have it that is how to register a business in Nigeria without hassles. A commonly asked question is the duration of the entire process. It takes about 2-3 weeks for a business name to be registered. The fluctuation is due to the workload of CAC workers. It is important to note that a lawyer is not required to register a business name. Therefore, be guided and do not fall prey to any extortionist whose aim is to swindle unsuspecting people.