1. It gives you a unique identity (and protects it too)
There is a certain pride that comes with the identity of your own business. It’s no longer that big idea you’ve had in your head all these years. It’s now a real thing that legally exists; with its own name and address. Some people choose their business names on emotional grounds (like their father, mother, wife or child’s name or even their own name). Some other people prefer to choose names that inspire while some other will go with names they want to portray good qualities about the business. Whatever name you choose, and for whatever reason, is totally up to you.

Once you’re ready to register your business, the first thing the Corporate Affairs Commission does is to check that no other business already exists with the same name, and that such name is available to be registered (Availability and Reservation of Name). Under law, no two businesses should have the same name to avoid confusing the public. Once it is confirmed that the name you’ve chosen for your dream business is available (that is, nobody else is already using it), you will be allowed to go ahead with the rest of the business registration processes. And unless your business goes bankrupt and is formally dissolved, no other person can use or register the same name.


2. It protects you from personal liability

This is arguably the biggest reason why many people have to register their business. Without the legal protection of limited liability, you could lose your business and personal property if something goes wrong (say somebody sues you to court for heavy damages).



Imagine you started a logistics and haulage business with two trucks that carry heavy goods for customers from the sea port to the inner cities. One day, one of your trucks had a fatal accident that involved a collision and fire that killed five people. Although your business has suffered a hit (as a result of the lost truck), that appears to be the least of your problems. Your biggest problem is the case brought against you in court by the relatives of the people killed in that accident. They are suing you for damages of up to N20,000,000. Even if you sold the other remaining truck, it wouldn’t still be enough to settle such a humongous sum.

How much money you lose in this scenario really depends on the nature of your business. If your business is registered as a limited liability entity, the worst that could happen is that ONLY your business will be responsible for paying the damages because it is a separate entity from you. However, if you were running an unregistered business, you may not be entirely safe. Why? Because your personal stuff (house, cars, money in the bank etc) maybe used to settle any outstanding debts the business cannot settle.

Don’t forget, not all company types can offer this protection. Only Limited Liability type companies can do this. Business Names, otherwise known as Enterprise, cannot provide protection from personal liability.

3. It makes you look serious and attracts more customers

In today’s modern world, most customers, especially corporate customers, expect a serious and responsible business to be registered. In fact, most companies will not do business with an unregistered business or company. In certain cases, it’s against the law for regulatory and tax reasons.

4. It’s easier to get bank Loans and investment from investors

For banks, there are basically two categories of loans; Personal and Business loans. They’re both totally different and one cannot be used to represent the other. As a result, most banks will gladly lend you money to buy a new car or house but none will give you money to fund a business that isn’t registered. To qualify for a business loan, the Number 1 and non-negotiable requirement is that your business must be registered. Period.


For investors, it’s the same thing. Investors are interested in giving you money for a share (equity) of your business, and not to finance your personal lifestyle. If there’s no registered business, what exactly will you be giving them a share of? Investors want to know that your business is organized, exists legally and is separate from your personal life and finances. No investor would take you seriously if you’re asking for investment but you don’t already have your business registered. To them, it’s a sign of unseriousness and a lack of professionalism. You don’t want anybody to have that impression of you.

you must also know that anyone who wants to invest in your business, will do a due diligence on your company, if it is not registered, his search will reveal that, more so, with the introduction of public search by the CAC, where every registered company can be searched on .gov.ng


5. It’s important for continuity sake

Apple, Toyota, . Have you heard any of these names before? Of course you have. These names are big multi-billion dollar businesses that have existed for decades. In fact, most of the people who formed these companies have been dead for a long time. Nevertheless, these businesses, which were quite small when they started many years ago, remain very big and successful today. It’s called continuity; human beings live and die after a while but businesses have the ability to last forever as they are transferred from one generation to another.

6. Federal and State Government Contracts

One of the basic requirements for the Federal and State Governments tenders, is that your business must have been incorporated in Nigeria, and evidence must be shown for your bid to be considered.

7. Having a Corporate Account

The last but not the least of reasons, is the fact that you can have a corporate account and issue cheques using the company name, this is very important, as most companies and government agencies will not deal, if provided with personal accounts.

There would not have been a better time, other than this moment to set up your company, with the newly introduced bank charges on personal account withdrawals and deposits in line with CBN'S cashless policy, it is only smart for you to do your transactions using a corporate account, as you will be saving huge sums of money which would otherwise be chargeable on personal retail accounts.

- Where can I get my business registered?

In Nigeria, the Corporate Affairs Commission is responsible for registration and all post registration services. preferably in its Abuja or Lagos office.


Note:

If you're in Nigeria or plan to set up a business in Nigeria, I know an accredited professional who can help. his services are quite affordable and efficient; and I know this because I've personally hired him a number of times to register Limited Liability Companies an Business Names. You can send an email to lawprinz_esq{at}yahoo.com and specify the kind of services you're interested in and any questions or clarifications you require.


– How much does it cost to register a business

For a business name, otherwise known as enterprise, it will cost you at least 25,000. for a Limited Liability, it will cost you 70,000, depending on the share capital.

– How long does the entire process take?

At the Corporate Affairs Commission, Abuja, it now takes between 24-48 hours to get your business registered.

For questions and queries, please forward a mail to starlion_notch{at}yahoo.com

Or call 07057663782

https:///post/starlionnotch./31

Cool...I love tha detailed information. Weldone Op.

Thank you so much for taking out your time, just as we took our time to come up with the article.

This post is still very relevant

We register your Business Names, Limited Liability Companies, NGOs, Trademarks and Patents.

Contact us on 07057663782
starlion_notch(at) yahoo.com
A trial will convince you.