TOP 5 COMMON MISTAKES TO AVOID WHEN REGISTERING A BUSINESS IN NIGERIA AND HOW TO AVOID THEM

In Nigeria, business registration is the new norm for budding entrepreneurs. A lot of businesses have been registered in the past few years since the digitalization of the processes of business registration and company incorporation in Nigeria under the Corporate Affairs Commission. For most entrepreneurs, the registration of their business is their next goal after establishing it.

While the recent digitalization of the process of business registration is a welcome development that has made things easier for persons wishing to register their business, some entrepreneurs wishing to register their business name, some entrepreneurs often make some mistakes when registering their businesses. In this article, We have outlined these common mistakes and how best to avoid them.

What is Business Registration?

When you come across the words business registration, what is the first thing that comes to your mind? The process of registering a business? Well, that is the simplest way to look at it. In a more detailed format, business registration can be defined as the set of processes that are involved in establishing and obtaining a legal entity for a business, in compliance with legal regulations.

In Nigeria, the top regulatory body for businesses and companies is the Corporate Affairs Commission which also carries out the registration of businesses. There different types of business registration which include; Limited Liability Companies, Partnerships, Incorporated Trustees, Sole Proprietorship, Cooperative societies, etc.

Common Mistakes Entrepreneurs Make When Registering a Business in Nigeria

Here are the common mistakes made by entrepreneurs when registering a business name in Nigeria:

1. Failure to Conduct a Thorough Name Search:

This is one of the most important steps in registering a business name. It is carried out to ensure that the business name is not being used by another brand, to avoid the frustration of sharing a name with another business, and to ensure the uniqueness of your business name and identity.

2. Using Ambiguous Words:

While choosing a name for their business, some entrepreneurs pick ambiguous or obscure and confusing words. While using unique and remarkable words for your business name is great, you might want to stick to simpler, easily understandable or more conventional words to ensure that your business name sticks in the minds of your potential customers. Where customers find your name difficult to remember, you might lose them to your competitors.

3. Choosing the Wrong Business Structure:

Choosing the wrong structure for your business can have a negative impact on your business. A thorough study of the different business structures before registration can help you chose the structure that best suits your business, be it a sole proprietorship, a partnership or a corporation.

4. Incomplete and Inaccurate Paperwork:

This could stem from the submission of inaccurate or wrong details or incorrect documents. These can lead to denial of approval from the CAC or a delay in the registration process.

5. Rushing the Process:

When registering your business, you might feel the desire to rush things over and get things done with, don’t fall for it. The process of business registration is one which ought to be carried out with utmost care to avoid errors and complications. Try to take it one step at a time, and don’t forget to breathe.

How to Avoid Common Mistakes While Registering a Business

Now that we know the common mistakes that are made while registering a business, the next step is to learn how to avoid them. Below are the ways to avoid common mistakes when registering a business in Nigeria:

1. Consulting an Accredited CAC Agent:

The best way to avoid the common mistakes that are made when registering your business is to get the assistance of an accredited CAC agent. This agent will guide you through the right steps to take and help you understand the name requirements of the CAC, and other essential information that will make your business registration journey easy and free from errors. In-Charge Solutions Limited is an accredited agent of the CAC that can assist you to make your business registration journey an easy and a smooth ride.

2. Study the Different Business Structures:

A deep study of the different business structures before you venture into business gives you an advantage. Knowing the right structure for your business can help you both in the creation of your business name and in the formation and registration of your business. At In-Charge Solutions Limited, we provide holistic education on the different business structures, to assist you in choosing the right business structure for your brand.

3. Conducting a Thorough Name Search:

It is very important to conduct a thorough and adequate search for business names that are similar to or identical with your business name, you do not want to lose your customers to a competitor brand that bears a similar or an identical name with your brand.

4. Choosing an Uncomplicated Name:

While you might want to tailor your business name to suit your business identity and have your brand written all over it, your business name should be a nice blend of simple and unique. This will enable your brand name to stick nice and easy to the minds of your prospects and customers.

5. Exercising Due Diligence and Care:

As earlier stated the process of business registration is not something to be rushed over. You need to carefully and patiently undergo the process. While you might feel the rush in your head register your business name, your business name will not run away, as long as you exercise due diligence. On your business registration journey, the words patience, care and diligence should be your mantra.

Conclusion

Registering your business is something you should absolutely do. However, you need to be careful throughout the process to ensure that you make no errors. This article provides the common errors made while registering a business and how to avoid them.

In-Charge Solutions Limited is a one-stop business solutions hun for all forms of business needs. If you need further assistance in your business registration journey, to not hesitate to contact us. Happy registration!