Business Registration in Nigeria: Why You Need it And How to Get It Done

Business registration is the process of getting a business, in its unique name and ownership, registered with the company registry and listed in the register of companies - a master record of all registered companies.

The Need To Register
As a business owner, your business will benefit considerably from being formally registered. This confers a measure of credibility and will boost your standing before parties you do business with. Your bankers will ask for your business registration certificate and related papers before opening an account for the business. Also, many other serious transactions involving the business will similarly call for the registration information. Registration makes the business an entity of its own, which is beneficial, especially in the case of a limited liability company. So, you will not only help the image of the business, but also empower it to engage in various transactions that will require a registered status and also enable the business to operate as a unique entity.

The Company Registry
The Corporate Affairs Commission is the company registry in Nigeria. It's registration processes have become increasingly streamlined, automated and consequently expedited. It however allows only accredited lawyers, chartered accountants and chartered secretaries to process registration, meaning that you will need the services of one, to register. With head office in Abuja, it has zonal offices across the country. At Abuja, this is at Plot 565 Ndola Square, Wuse Zone 5, while in Lagos, it is at Elephant House, Agidingbi, Ikeja.

Choice Of Format
The business format you choose to register under will depend on the nature of your business and the factors that are important to you. Each format has its requirements (for example, the minimum number of members) and its privileges and obligations under the law. Main categories:

1. Registration of Business Name: the simplest structure, used by sole proprietorships and partnerships. Easier and cheaper, it has it's benefits, but offers no limited liability. The clear demarcation between business and owner is not fully realised.



2. Incorporation of Companies: Registers the business as a body corporate. Ownership is a separate entity from the business. Requirements for this status are more rigourous but it also confers a superior status and offers the unique benefit of limited liability. Categories are: Private Limited Company (Ltd) Public Limited Company (PLC), Unlimited Company (Ultd) and Company Limited by Guarantee (Ltd/Gte).



3. Registration of Incorporated Trustees: Relates to public institutions and associations, operated buy a board of trustees.

Your choice will depend on what suits your purpose. More information on the pros and cons of the formats is provided in our article How To Register a Business With The Corporate Affairs Commission. Evaluate these details to decide on the format that is best for your business.

Related Resources
Our articles Choosing The Line Of Business That Will Work For You and Looking For Viable Business Ideas? Here's The Key! are great to get you off with smart business ideas.

Other Articles and Resources in current edition

• 9 Critical Steps That Will Help You Hit The Bull's Eye - an Expert View
• 7 Don'ts of a Business Web Site
• Get Organised for More Effectiveness! (1)
• Corporate Briefs