You’ve cracked that brilliant business idea, done your market research, and you’re about to embark on an exciting entrepreneurial journey. However, a vital step to take in your business journey is registering your business name with the Corporate Affairs Commission in Nigeria. 

You should know that this isn’t just an unnecessary ‘paperwork’ activity, but there are various advantages of business name registration in Nigeria. From improving your business credibility, and increasing customer and investor trust, to avoiding legal complications, there are many reasons why it is important to register your business name. 

Let’s dive deep into the various advantages that come with registering your business name as an aspiring entrepreneur in Nigeria.

What is a Business Name?

A business name is the title that your business operates under for profitability purposes and it can also be known as an enterprise. The Companies and Allied Matters Act (CAMA) 2020 refers to a business name as a “style or name under which businesses are carried on, be it in a partnership or otherwise”

Furthermore, a business name registration is the process of registering your business in Nigeria with the Corporate Affairs Commission (CAC), thereby allowing you to legally operate under that name. 

You should also know that once you have successfully registered your business name with the CAC, you receive a Certificate of Registration and a Certified Extract of Registration Information, ensuring your business is recognised and compliant. 

Some requirements to register a business name with the CAC include;

• 2 Preferred business names

• Your Business Address

• Your Residential Address

• The Nature of your business company,

• Identification Card, i.e., National Identity Card (NIN), voter's card, or driver's license.

• Your Passport Photograph

• Your Phone Number

• Your email address

Benefits of Registering Your Business Name with the CAC in Nigeria

1. Legitimacy

The Companies and Allied Matters Act (CAMA) 2020 mandates all businesses in Nigeria to undergo a business name registration. This enables your business to gain a right standing before the law, thereby ensuring that it is a legitimate entity recognised by the government. 

You can save yourself the legal implications of running an unregistered business name and enjoy the benefit of setting up a business bank account under your unique name. Furthermore, as a Moniepoint Business Bank Account Holder, you can register your business name on the Business Banking App and get your certificate of registration within five days.

2. Boosts Your Brand

Running your business with a registered business name creates a unique brand identity for it and enables you to establish trustworthiness and credibility in your industry. Most customers are more comfortable transacting with businesses that are registered as it reassures them of the legitimacy of the business.

3. Increased Access to Loans and Government Grants

Most government loans such as the Federal Grant and Loans initiative are available to businesses with a registered business name. By registering your business name with the CAC, you stand a better chance of accessing such loans, grants, and sometimes investments.

4. Protection

When you register your business name with the CAC, it ensures legal protection for your business against infringement or duplication by other businesses. Once you’ve registered your business name, it becomes protected by the law, that is, no other business can operate using that business name. 

Ultimately, this aids you in avoiding legal issues and complications, thus protecting your brand reputation.

5. A Unique Business Bank Account

As a business owner, making transactions using a business bank account like Moniepoint MFB set up in your business name is beneficial. Customers, for instance, prefer sending money to an identifiable brand name rather than a personal bank account. From improving customer loyalty to ensuring smooth business funds operations separate from your personal funds, the Moniepoint Business Banking App offers various banking benefits. 

Conclusion

Nothing sounds better than a smooth-running business safe from the hitches of legal complications. By registering your business name, you get to enjoy a unique business bank account as well as the loyalty and opportunities that come with your business’s legitimacy.