As an entrepreneur, a business name is one of the essential requirements for starting a business. Post deciding on the name for your business ventures, the next step is the reservation of your proposed business name with the Corporate Affairs Commission (CAC). Previously, business name reservation was considered a difficult task. Fortunately, that’s no longer the case. This 1 min 43-sec article highlights the steps to register a business name with CAC and the essential commandments to bear in mind when reserving a business name in Nigeria.
These steps include:
- Proposed Name
Ideally, it is recommended that you come up with at least 5 names that reflect your brand (Luckily, you only need 2 options to reserve your business name with CAC, the extras will come in handy if you are unsuccessful at reserving the initially proposed names ).
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- Complete Your Pre-Registration Form & Register Your Business Name
With the advent of technology, business name reservation takes less than 48 hrs and costs only N500Naira Naira. Once your business name is reserved, you can now proceed to register your business properly with the CAC. However, if your proposed names are not approved, you can resubmit new names or optimized the previous names. Sadly, every new submission costs N500 Naira.
It is important to validate your proposed names by performing a free search for those names on the CAC’s database to ensure your proposed names are not identical to an existing business. Besides, bear in mind that your business name must reflect your brand.
5 Commandments of Business Name Registration
- You are prohibited from registering an identical name with an existing business.
- Except for a company limited by guarantees, you are prohibited from registering your company as a Chamber of Commerce.
- You are prohibited from registering names that are misleading, vague, deceptive, etc.
- To make use of certain names, CAC requires the prior consent of the commission. Such names include federal, national, state, local government (See S.30 of Companies and Allied Matters Act 2020 for a comprehensive list of these restricted names)
- Post business name registration, you are expected to register your business structure within 60 days otherwise the business name reservation will expire, as a result, you will start the name reservation afresh.
Overall, you are now fully equipped with the know-how on reserving a business name with the CAC as well as the list of commandments every entrepreneur should pay attention to before and post a business name reservation.