Dear Entrepreneurs, hustlers, and aspiring business owners, I’ve been sent to keep you informed, and that, I will do. You see that business you’re so passionate about, that hustling that keeps you grinding non-stop, or that enterprise, venture you wish to establish, it is paramount you have it registered. I’ll be telling you why, when, where, and how to register your business name on CAC. So buckle up, relax, and enjoy the ride.
What is a Business Name?
This is any name you give to your company, enterprise, or venture, under which you will be conducting your business transactions. Your business name can be your name or a distinct name that portrays what your business is about. For instance, a name like “green ventures” automatically makes you think of agriculture.
A business name speaks for your business in a few words and has the power to make or mar your entire handwork. Having a unique identity is the first thing to do when establishing a business, and it is also an important criterion to register your business on CAC.
There are a lot of existing online and offline businesses that are not registered under the appropriate channels. This can be challenging in many instances, which is why the next section talks about why you should register your business.
5 Reasons Why You Should Register Your Business on CAC
Some business transactions don’t necessarily require business name registration. However, there are benefits you stand to gain when you register your business name on CAC.
- It protects your unique identity
Registering your business name on CAC ensures the uniqueness of your business within the country. That is, no one can drag that name with you once it’s in the database.
Creating Business Bank Accounts
A business bank account is a vital asset. It helps you to separate personal transactions from the business. It also gives you an aura of professionalism when you exchange it with your clients. But, if you don’t have a registered business name, you can’t create a business bank account. A registered business name is proof of legitimacy and ownership, and it’s one of the necessary pieces of information you need to create an account.
Securing Loan and Getting Funds
Before any funding approval, investors and/or loan agencies want assurance that you’re real and that your business exists. Your business registration certificate is one of the many documents you’ll need for a better chance.
Liability and taxes
Every registered business must acquire an Employer Identifying Number (EIN). You can get this from the IRS and the state where your business is based.
Good reputation with customers and clients
There is a reasonable level of assurance your business gives to both old and new customers when you register your business name. If your business profile is readily found under the appropriate legal body, you significantly reduce the chances of people calling you sketchy or a scam.
Do you now understand how registering your business name is one of the things every company owner should do in addition to product creation and marketing?
What is CAC About?
The CAC are the Corporate Affairs Commission, an autonomous body liable for regulating the formation and management of companies in our country, Nigeria. It was established in 1990 by the National Assembly of the Federal Republic of Nigeria. The CAC’s funding and structure are presided by the Companies and Allied Matters Act 2020. Its roles are carried out by accredited members of the Association of National Accountants of Nigeria (ANAN), the Nigerian Bar Association (NBA), the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), and the Institute of Chartered Accountants of Nigeria (ICAN). The CAC carry out services such as business name registration and registration of incorporated trustees (NGOs).
Some of the duties of the CAC include the following:
- Registration of business name
- Incorporation of private and public companies
- Share capital and mortgage registrations
- Investigating the affairs of both the private and public companies where necessary
- Responding to complaints and inquiries concerning the commission and its functions
Steps on How to Register your Business Name with the CAC
In Nigeria, the Corporate Affairs Commission (CAC) is responsible for regulating the formation and management of businesses.
Here’s a rundown of the CAC business registration process:
Reserve a unique business name on the CAC website database
It can be challenging to find that a name you thought was perfect for your business already exists in the CAC database. It is advisable to perform in-depth research, and have other unique and relevant alternatives in case something like that happens. This will improve your chances of running only one check and getting positive feedback.
To reserve a name for your business, you have to create an account on the CAC website first and then follow the prompts to enter your chosen business name. This can take as little as a couple of hours to as much as a few days.
Once you’re done with the name reservation, you can commence business name registration properly. You’ll complete a pre-registration form referred to as the CAC-BNo1 via the CAC online registration portal.
Filing Fee Payment
This is the fee you pay to get your data filed. You will receive a receipt after the payment and then you can make payments directly from the website portal or via bank. For this, you would need only 500 Nigerian Naira to reserve a business name with the CAC. You can find general information on CAC services fees for other customized business registration services, depending on the type of company you are registering.
After payment, print out your business name and add your signature to the print-out form in the space provided.
Preparing your documents for upload
This is that pre-registration document issued to you in the beginning. You’d need to prepare a signed copy, scan it and upload it to the website where it is processed. Some of the documents you need to upload to register your business name on CAC include:
- Approved note form
- Filing fee receipt
- Valid ID card
- Filled statutory form
You will have to submit he original copies of the above-mentioned documents to the CAC office. There you’ll collect your certificate of business name registration alongside certified copies of the documents.
Registration is completely online on the CAC e-registration portal. At the end of the process, you will have an e-certificate available for download and printing from your dashboard.
When Should You Register Your Business Name on CAC?
Once you’ve made up your mind about a business idea, and you assign a name that resonates with its values, that’s the best time to register your business on CAC. This can serve as a motivation to follow up with that idea. When you register your business name on CAC, it will be saved in the database, and that’s one less thing to worry about as you gather other resources to launch a successful business.
If you already have a business, the method above is a complete guide on how to register your business name on CAC.
There you have it! The basic rundown of things to expect when you go through the CAC e-registration portal to register your business. You should know that registering your business name and limited liability company incorporation might follow the same route, but the payment requirements are different.
Please note that the services of a legal practitioner or any third party are not necessary to register your business name on CAC. The process to register your business name on CAC has been simplified to encourage the prospective participation of any business owner with maybe slight help from a friend.
The CAC website is easy to navigate and full of useful resources that will make the CAC registration process as smooth as you can imagine.
Congratulations on making your business name official.
Maryjane C. Chiedozi, a writer with an untamed passion for creativity, research and productivity, all put together to create masterpieces. Maryjane C. Chiedozi is also an author of the novel 'Our Hearts Beat For Anne' which can be read exclusively on GoodNovel.