10 Essential steps for Business Registration

In times past, registering a business in Nigeria was a lengthy process. It would take several days and a lot of paperwork to straighten everything out.

But in Nigeria today, registering a business is no longer a difficult task.

You may ask why you need to register your business?

Although you can operate a business without registering it, incorporation is a smart move as your company expands. Making a business official in the eyes of the government and securing your personal and commercial assets legally requires registration.

Business Registration in Nigeria 

In Nigeria, the sector involved in business registration is the Corporate and Affairs Commission (CAC). 

It is an autonomous body founded in 1990 under the Companies and Allied Matters Act. 

They are charged with the sole responsibility of regulation and management of companies and businesses in Nigeria.

In October 2020, the Federal Government of Nigeria gave out Free business name registration to about 250,000 businesses. 

In this post, you will have a detailed  guide on how to register your business in Nigeria through the Corporate Affairs Commission (CAC).

Steps to Business Registration

It’s not difficult to register your business, but you do need to follow the necessary procedures. Below are the steps involved in the business registration process: 

1. Find a Business Name.

2. Determine your Business Structure.

3. Prepare your Business Documents.

4. Reserve your Business Name.

5. Register with the Corporate Affairs Commission (CAC).

6. Get your Tax Identification Number (TIN).

7. Get registered for Value Added Tax (VAT).

8. Open a Business Bank Account

9. Comply with Annual Filing Obligations.

10. How much it Cost to Register a Business Name in Nigeria.

1. Find a Business Name

Select an original yet relevant name for your company. Be sure that it doesn’t already exist and that it conforms with the rules established by the Corporate Affairs Commission (CAC).

As an intending business owner, your business name registration is one of the essential requirements for starting your business.

2. Determine your Business Structure

Find out the legalities involved in the structure of your business, whether it will be a sole proprietorship, partnership, limited liability company (LLC), or a public limited company (PLC).

3. Prepare your Business Documents

Get all required documents for your business such as identification, proof of address, memorandum, and articles of association. 

These documents would be necessary for the registration process.

4. Reserve your Business Name

Apply for your business name reservation with the CAC. This process makes sure that the name you have chosen for your business is not in use already by another company or business. The CAC helps secure your business name from plagiarism or unnecessary duplication.

5. Register with the Corporate Affairs Commission (CAC)

Fill out the necessary business registration forms provided by the CAC and submit them together with the documents required of you for your business name. 

Pay the allotted fees for the registration process.

6. Get your Tax Identification Number (TIN)

Register for your Tax Identification Number (TIN) with the Federal Inland Revenue Service (FIRS). This number is very important for tax compliance and further dealings with the government agencies.

7. Get registered for Value Added Tax (VAT) 

If the interest of your business exceeds the set limit by the FIRS, you have to register for Value Added Tax (VAT) to comply with the tax regulations.

8. Open a Business Bank Account

Open a business bank account with your registered business name and TIN. This is essential to help keep your personal and business finances separate accounts.

9. Comply with Annual Filing Obligations

After you have registered your business, make sure to meet the required annual filing with the CAC and other relevant government bodies. This also includes filing annual returns and updating any changes in your business details.

10. How much it Cost to Register a Business Name in Nigeria

The cost of registration for a business name may vary depending on the kind of business you run or the third-party agency helping you out with your business registration processes.

You could also seek the help or advice of legal practitioners, or secretaries and third-party agencies like Patfort Ltd to register your business name.  

The process of the CAC business name registration has been made easy and simple, to encourage active participation of prospective investors and entrepreneurs. 

One of the essential benefits of registering your business name in Nigeria is that it makes you qualified to get financial assistance from the Bank of Industry.

Conclusion

Keep in mind that, the process of registering your business name may differ slightly, depending on the type of business you have and the location. So it’s important you visit the CAC website for more accurate and up-to-date information in.

I hope you have found this detailed article useful to you in the registration of your business.