READY, SET, REGISTER!: 7 Reasons Why Business Registration Is A Must For Nigerian Entrepreneurs

The importance of business registration for Nigerian entrepreneurs cannot be over emphasized. As an entrepreneur in Nigeria who is interested in fitting into the market and getting ahead of competitors, registering your business should be the first thing on your mind.

Not only does it secure your brand identity from being stolen, it also gives you easy access to funds, and increases your credibility in the eyes of your prospects among other things.

This article highlights the meaning of business registration, the processes and why business registration is a must to Nigerian entrepreneurs. Sit back and relax as we guide you through the processes and relevance of business registration. 

What is Business Registration In Nigeria 

The simplest definition of the concept of business registration is the process of registering a business. It could also be defined as the process of establishing and obtaining a legal Identity for a business in accordance with the law. 

Business registration is one of the legal requirements of running a business in Nigeria. Thus registering a business earns it the recognition of the relevant regulatory authorities. The principal regulatory body for the conduct of business and commerce, is the Corporate Affairs Commission (CAC). Hence, business registration is carried out according to and under the guidelines of the CAC. 

Forms of Business Registration in Nigeria 

Now that we know the meaning of business registration, it is of essence that we take a look at the different forms of business registration in Nigeria. This will also enable entrepreneurs to know what form of business best suits their business idea and plan. Below are the common forms of business registration Nigeria: 

1. Sole Proprietorship: 

This is a form of business that is run by one person. This is typical of small businesses or startup brands. The registration of a business as a sole proprietorship involves obtaining a business name and trading under the name of the owner.

2. Partnership: 

A partnership is usually run by two or more persons with a common goal or object. Registration as a partnership is usually carried out with a formal partnership agreement. 

3. Limited Liability Company/Corporation: 

A limited liability company provides protection of personal assets from liability to its shareholders, and makes a distinction between the company from its shareholders. Registration of a business as a limited liability company or a corporation involves different processes including the filing of a Memorandum of Association and Articles of Association. 

4. Cooperative Society: 

This is a business organization that is set up by a group of individuals to cater for their common goals and business interests. Registration as a cooperative society is done in accordance with statutory laws at state level.

Procedures of Business Registration in Nigeria

Business registration in Nigeria involves the following steps: 

1. Conducting a public search to ensure that your proposed business name is not being used by another brand.

2. Checking the availability of your name with the CAC to ensure that your name meets with the legal requirements of the CAC and applying for a reservation of the approved name.

3. Filling the Application for Registration of Business Name Form with the required details such as approved name, principal office address, branch office address if any, 

4. Uploading the Application Form along with the required documents such as your National ID card, etc. on the CAC website. 

5. Collecting your Certificate of Registration of Business Name along with a Certified True Copy of your Application for the Registration of Business Name form.

Why Business Registration is a Must for Nigerian Entrepreneurs

Business registration is very essential for Nigerian entrepreneurs and owners of big or small businesses.

Apart from being a legal requirement, business registration also offers ample benefits that no entrepreneur will want to miss.

Below are the benefits of business registration to Nigerian entrepreneurs: 

1. Compliance with Legal Requirements:

The registration of a business ensures compliance with applicable laws and statutes. This enables the owners or shareholders to evade legal penalties attached to non-observance of these legal requirements to ensure smooth operations. 

2. Legal Recognition: 

Business registration gives it an identity in the eyes of the law and puts it in good standing with regulatory bodies. This new Identity affords protection for the brand.

3. Building Trust and Credibility:

Registering a business increases its credibility in the eyes customers and prospects, and equally boosts their confidence in it. Hence, customers feel more secure working with registered brands, than they do with unregistered brands.

4. Access to Financial Resources: 

One of the benefits of registering a business is that it provides the business with access to financial resources such as loans. Upon the receipt of loan applications, banks and other financial institutions tend to lean in favour of registered businesses. These businesses have higher chances of getting financial resources from lenders and financial institutions. 

5. Permits and Licenses: 

Some businesses require the acquisition of permits and licenses to be deemed legal in Nigeria. Registration facilitates the acquisition of these licenses and permits. 

6. Business Expansion:

Registered businesses enjoy the privilege of easy expansion without legal inhibitions. They can also freely engage in inter-state and international activities, subject to relevant statutes.

7. Protection of Intellectual Property: 

The registration of a business provides an avenue for the protection of its intellectual property such as trademarks, copyrights, and other unique assets.

FAQs

Conclusion

Thanks to this article, we now know the importance of business registration to Nigerian entrepreneurs. However, where proper care is not taken, you may make a mistake why registering your business, which might cost you some of the benefits you stand to gain from business registration.

Carrying out a business registration process on your own can be very taxing and risky. Hence, it is advisable to contact a reliable CAC agent to help you and guide you through the process of registering your business to help you to know the common mistakes to avoid when registering a business in Nigeria

In-Charge Solutions Limited is an accredited agent of the CAC that can assist and guide you through the process of business registration to make your journey smooth and free of errors. Contact us today, we’d love to assist you.