ezugegere:
How much do you register business name?

Adamma91:
THE 'DO IT YOURSELF' SYNDROME

It is important to write this because of the questions arising from my previous posts where I treated the 'differences between enterprise and limited liability company.

You see there are some things you can do on your own but registering your business yourself is not one of them unless, you have a guide seated right beside you else you will loose a lot of time and resources trying to do it yourself.

Many a time, people have approached me with their business registration because they got stuck on the way.

Some of the reasons being as a result of series of query upon query resulting from the fact that some are registering a business only registrable under a company as an enterprise.

Some also as a result of wrong filling of information and inability to couch their nature of business properly.

Do you know there are certain type or category of business that can never be registered under ordinary business name(enterprise)? The businesses that fall under this category can only be registered as a company with a particular share capital threshold.

Recently, someone sent me a message complaining bitterly how her application has been hanging for over three months. She has been trying to register a travel and tour business under ordinary enterprise. This is a kind of business that can only be registered as a company with a minimum of 30 million share capital.

If not that she reached out to me, all the registration fees she paid would have been a waste but she had to spend almost same amount with what she has spent so far to get this sorted out.

Now listen, it is not all business that are registrable under a business name, some can only be possible as a company with a particular minimum share capital.

For instance, no financial related business can be registered under a business name. A commercial bank with regional reach/scope can only be registered as a company with a minimum share capital of 10 billion. The one with national spread is 25 billion share capital while the one with international authorization is 50 billion share capital.

As simple as a POS business looks, it can't be registerd as an enterprise. Someone in my contact is stuck on this presently.

For freight forwarding company, it is a minimum of N5,000,000 share capital while a shipping company requires a minimum of N25,000,000minimum share capital.

Business registration is beyond what you think. It is not one of those digital skills you just Google online or go to YouTube to watch how to do. You may end up wasting money upon money.

Apart from the issue of knowing what type of business that can be registered as ordinary business name and/or company, there are other reasons you don't have to do it yourself. You will need a professional to really capture what your business does in the nature of business. You will need an expert to avoid the issue of double billing or double payment of registration fee.

Talk to me today. Bring on that challenge Even if you have started and get stuck.

Happy weekend of amazing breakthrough

Adamma91:
Dear Business owner,

Choosing the right legal structure for your business should never be about cost.

Stop using the cost of registration as the yardstick for registering your business as an enterprise ( business name) when you should actually be registering as a proper company.

Agreed, a business name also known as a venture or Enterprise maybe cheaper ( cost wise) than an actual LLC but I'm the long run it is almost pennywise Pound foolish.

Do you know that a business name does not offer any form of legal protection from any liability?

Do you know that you cannot enter into a contract using your business name?

Why?

Because the law does not see the business name or Enterprise as a legal venture.

Do you know that you cannot access equity funding opportunities or attract equity investors into your business when you register as a business name and not as a Ltd liability Company?

That means that you have to rely solely on your personal financing and loans from Family members and friends, banks or even online loan companies.

You see those online loan companies, they will drag your generation if you default in repayment even for one day.

Do you know that it will be almost impossible to scale your business name as fast as you can scale a company?

Do you know that business names or enterprises have very limited scope in terms of the businesses that you can do under it?

Do you know that there are some contracts you can't get and some organisations that won't do business with you just because you do not have a limited liability Company?

Dear Business owner,

the legal aspect of your business is not limited to registration of the business alone.

There are legal implications for choosing to structure your business as a Ltd liability Company or as an enterprise.

Stop deciding the legal structure of your company based on cost.

This thing can really grow big you know.

Have the big picture in mind always when starting your business.

Cc: