BENEFITS OF REGISTERING YOUR BUSINESS.

1. Recognition by the Federal Government

2. Certificate of Incorporation

3. Getting Loans

4. Reputation With Customers

5. Account Opening in Your Company Name

6. Legal Liability Protection

7. And others

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What advantages does registering my business offer?

Benefits of Corporate Affairs Commission Business Registration (CAC)

This is a common query among business owners. Many Nigerian business owners have failed to register their companies with the Corporate Affairs Commission.

Typically, registering your business name with the Corporate Affairs Commission is the first step when starting a business in Nigeria (CAC). You can use this to find out if the name you have in mind is still available and hasn't already been registered by someone else.

Most business owners develop brands only to discover later that their "business name" is actually legally owned by someone else. When you consider the suffering of the other person, I think this is not a fun experience.

Due to ignorance, some people don't register their businesses, while others regard it as a way to avoid paying taxes. However, you should be aware that any perceived disadvantages are greatly outweighed by the advantages of registering your firm.

In this presentation, we've listed 12 advantages of registering your company with Nigeria's Corporate Affairs Commission (CAC). Please read carefully.

1. A corporate account may be opened using your registered business certificate.
2. Because they are aware that their money may be tracked, potential clients feel more secure making payments into a business account. Additionally, once your firm is registered, you can open a corporate account with any bank of your choice.
3. As soon as your company is registered, you can apply for loans and grants.
4. Customers trust you because they perceive you as trustworthy and legitimate when you register your business.
5. The initial stage in structuring your firm is to register it. You are operating your business as a glorified hobby without registering it.
6. Interns from the NYSC may be hired by a registered firm.
7. Customers feel more confident doing business with a company that is registered.
8. If your firm is registered, it will continue to operate even if you pass away or become disabled, especially if the proper organizational structure is in place.
9. Businesses that are registered have simple access to funding and limitless options.
10. If your firm is registered, you will have easier access to investors because they first consider the organization of the business before making an investment.
11. You can quickly get a visa and travel anywhere for conferences and business with a registered business.
12. Registering your business improves how prospective customers view and perceive your organization.

One person or a maximum of two people may register the business name on behalf of a lone proprietor. You will require a minimum of two directors and a secretary in order to register as a limited liability company in the past. An individual may now register a limited liability company under a new law.

If you register as a business name, you are responsible for all financial obligations. The business, however, is regarded as a distinct entity from the owner if you register as a limited liability company. As a result, the firm is responsible for all of its liabilities.

The steps for CAC Business Registration.

Get a Pro to Assist You With Registration

Inexperienced people may find it challenging to register themselves. Therefore, it is always preferable to hire an expert like us at ARKTIVE Global with team of CAC Accredited Agents.

Most often, when they reach a certain stage, people become stuck. You can use a professional's services to prevent this as it may be a major issue.

You can rely on ARKTIVE Global to assist you with the registration of your business. It is quick, inexpensive, and seamless with us.

To top it all off, your certificate will be prepared in 2 to 4 working days.

Don't hesitate to contact ARKTIVE GLOBAL through: for further information.

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Gain recognition for your business, and put your well-built business on the world map. Contact us today to make your brand the preferred choice for our audience of entrepreneurs and investors.

We started this CAC BUSINESS NAME REGISTRATION yesterday evening around 8pm, 12th December 2022.

The client gave us a deadline to get the Certificate ready before Friday 16th December, 2022 and we told her it will be achievable God willing.

During our conversation, she changed the deadline to Thursday 15th December, 2022 and I told her that her CAC Business Name Registration will be completely registered, approved with incorporation certificate by Wednesday 14th December, 2022, or Thursday 15th December, 2022 In shaa Allah.

Lo and behold, we got her Business Name Registration finally approved with the certificate ready to be delivered to her today Tuesday, 13th December, 2022 (3:30pm).

For swift, legit, confidential and assured CAC registration and post incorporation, our team at ARKTIVE Global are your surest plug.

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Business Name Registration vs LTD Registration:

Understanding the difference as a Nigerian Business

Making your business legal is a big step in your growth journey as a business owner. In a lot of ways, it signifies that the business stands on its own without the many limitations of it being tied to you. Business owners choose to register their businesses for numerous reasons some of which include:

Get Investors
It’s not possible to get legit investors without having a legit business. You build trust and credibility if you are looking for investors to join your business.

Loans
An essential part of loan applications is business registration. Without it, you will be unable to secure loans to grow your business.

Grants
Certain business grants are available year-round for small and medium businesses. To avoid fraud, most grants require proof of business registration.

Trust
Having your business registered builds trust with your customers as they are assured that you are not a scam.

Business account
Business registration allows you to open a business account which means you can separate your finances from that of your business.

For some businesses, a business name registration is the way to go and for other businesses, you need to get registered as a private company. In this article, we would be breaking down these two routes to getting your business legal and opening your eyes to which would work for you.

WHAT IS A BUSINESS NAME
Registering a business name simply means getting legal recognition of a name other than your name. This name recognized by law is what your business will be known as. For example, Mr Duke Ololo runs an electronics store, and when he wants to register his business name, he can register Cavemen Electronics. Once he registers this name, nobody else can use it.

WHAT IS A COMPANY LIMITED BY SHARES or LTD
While there are several types of companies. A private limited company is easily recognizable because it is the type of company that ends in "Limited" or "LTD"

But what does this kind of company mean? A private company limited by shares (LTD) means a company formed by a minimum of one person and a maximum of 50 where the liability (how much they are obligated to pay in the event that the company has debts or is closing down according to provided legal steps) is limited to the contributions made at the time the company was set up.

ADVANTAGES OF A PRIVATE COMPANY LIMITED BY SHARES (LTD)
Liability- In an LTD, the liability of the shareholders is limited to the shares they own. This means if the company falls into debt, the debtors cannot demand that the shareholders use their personal assets (cars, real estate, cash) to settle their debt.

Continuity- The existence of a company is not determined by its shareholders. Even when the shareholders die, the company will continue to exist.

Personality- Under the law, the company is regarded as a separate legal entity meaning that it can sue or be sued in its own name.

Process- All the activities and processes of a private company are governed by the articles of association and the Companies and Allied Matters Act 2020. This gives investors confidence knowing that it is properly regulated by law with checks and balances.

ADVANTAGES OF A BUSINESS NAME
Ease- A business name can be registered quickly with only a National identification number, signature and passport required to register a business name. Kippa Start allows you to conclude this process in days and get a certificate via email without stress.

Cost- A business name registration is relatively cheap and affordable.

Control- There is no requirement to have a partner in order to register a business name. A sole proprietor can register a business name alone giving such an individual total control over the operation of the business and also access to all the profit.

No formality- Running a business name does not require formalities such as meetings mandated by regulatory agencies.

Conversion- A business name can eventually be converted into a private company allowing the business to grow at its own pace until it is ready to convert.

WHAT ARE THE DIFFERENCES BETWEEN A BUSINESS NAME AND A COMPANY LIMITED BY SHARES (LTD)

LEGAL STATUS

A private company limited by shares (LTD) is a separate legal entity. This means if there is a legal dispute where parties have to go to court, the company can sue and be sued. Effectively, it is a separate person.

A business name does not have this legal status. In instances where there is litigation, a business name can only sue or be sued under the name of the business owner(s). For instance if Mr Duke Ololo in our previous example is being sued, it will be “ Mr Duke Ololo trading under the name and style of Cavemen Enterprises" You cannot sue "Cavemen Enterprises" directly.

TAXATION

A private company limited by shares (LTD) is required to pay Companies Income Tax and other relevant taxes to the Federal Inland Revenue Service(FIRS). However, if such a company has a turnover (This is your gross revenue or income before you deduct things like marketing costs, rent, salaries e.t.c) below 25 million it will not be required to pay Companies Income Tax.

A Business name on the other hand is not required to pay Companies Income Tax. The owner is only required to pay taxes on their income as an individual.

LIABILITY

The liability ( your financial obligations/ the amount you are required to contribute to the business entity) is also another distinguishing attribute between a business name and a company.

In a private company limited by shares (LTD), the liabilities of the shareholders are limited by the number of shares they take on when the company is being formed. This means that if the company is being wound up (the company is being shut down) or the company has debts, all they will be required to pay is the value of shares that they took when the company was being formed that have not been paid.

A debtor cannot go beyond that to request that the personal assets (cash, real estate, cars etc.) of the shareholder be used to settle any debt of the company.

However, if a registered business name incurs debt or is declared bankrupt ( unable to meet its financial obligations) then the debtors can sue to recover the debt from the personal assets of the business owner.

DOCUMENTATION

A registered business name receives a certificate of registration of business name while a private company limited by shares (LTD) receives a certificate of incorporation. Both documents are issued by the Corporate Affairs Commission.

MEMBERSHIP

In terms of membership, a company limited by shares is required to have a director(s) and shareholder(s) while a business name is only required to have a sole proprietor or partners (proprietors).

A company limited by shares has the capacity to accommodate a maximum of 50(fifty) shareholders while a business name is limited to a maximum of 20 partners except for law and accounting firms.

FUNDING

A company limited by shares can secure funding by selling shares to private investors. A business name does not have shares it can issue. It is generally funded by the owner with opportunities to take loans from financial institutions or family and friends.

DISSOLUTION

A business name is automatically dissolved ( it ceases to exist) when its founder dies unless there are other partners available to carry on the business.

However, a private company limited by shares (LTD) is not affected by the death of its shareholder. In the case of death, the operations of the company will continue to be run by the other shareholders or directors of the company.

If the company has a single shareholder or director then the family of the deceased can take over the company and appoint a new director by applying for a letter of administration or probate from the court.

This is because, under the law, a company is its own person and can only be dissolved by following a process laid down by the law. The death of a shareholder or director is not the death of the company.

CAN I CONVERT MY TYPE OF BUSINESS AFTER I REGISTER?
Yes, you can.

A private company limited by shares (LTD) can be converted into a public limited company (PLC). A business name on the other hand can be converted into a private company limited by shares (LTD).

CONCLUSION
The two routes to making your business legit that have been explored in this article serve different needs. Before making a decision, it is important to understand the unique benefits of each one, the current needs of your business and your future growth plans.

Kippa

YOUR COMPANY IS INACTIVE!

The first step in making sure your firm has the proper legal standing and access to endless opportunities is to keep its status ACTIVE on the CAC portal.

At ARKTIVE Global, we care about your business and we are dedicated to your company's success and reputation.

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