If you are running a one-man business or a sole-proprietorship, or some other kind of business where you do not hope to raise capital through issuance of shares, then you might need to register your business name immediately.
The authority responsible for registering business names in Nigeria is the Corporate Affairs Commission, established by the Companies and Allied Matters Act, which was promulgated in 1990 to regulate the formation and management of companies in Nigeria
More often than not, a lot of people have done several businesses under different names and identities other than their personal names, which they have not yet registered with the relevant authorities. In Nigeria, this may be a common practice, but one thing that such people do not understand, is the fact that there are more disadvantages to this than there are advantages.
In this post, the importance and relevance of registering your business name with the Corporate Affairs Commission, has been succinctly treated.
First of all, What Is Business Name Registration?
Business Name registration (Other than company incorporation) is the process of obtaining legal authorization from the relevant authorities in a country, in order to carry on business activities within your chosen area of business or jurisdiction. In other words, if you are conducting business under a name other than your personal name, then it is expedient that the name is duly registered with the Government, through the relevant authorities.A couple of questions may be up on so many people's mind, such as:
Why Should I Register A Business Name When I Could Always Use Any Name I Please?
Yes! you could probably pick up any name from the old books and then use if for your business, but in what way does that stand you out from the crowd?.... the answer is "IN NO WAY!"
Registering a unique business name for your business gives you a lot of edge over those working under unverifiable names. It gives you a lot of advantages over the crowd, and makes you an authority in your chosen jurisdiction of trade.
Registered businesses gain amazing publicity in the industry because they have gained reputation from their clients and also from the Government. The existing clients of a registered business will continue to support the business and therefore accelerate a rapid success for the business.
The potential clients of the company on the other hand will find that a registered business is more reliable than one that is not. This is because they are aware of the company’s established credibility in the business world.
6 Great Reasons Why You Should Register Your Business Name Today
REPUTATION: Businesses that are registered have a better reputation, and therefore, potential clients feel more comfortable doing business with an establishment that is duly registered.
ORIGINALITY AND UNIQUENESS: When a business is registered, it is unique and stands out from the crowd of unregistered business names all around the place. When your business name is registered, you get official certificate of business name registration, as well as Certified True Copies (CTCs) of registration documents from the Corporate Affairs Commission, which your unregistered counterparts do not have.
SOURCING LOANS EASILY: If a business name is duly registered, then it can easily access loans from banks, and other financial institutions, but if it's not, then no financial institution would risk doing business with it. When you apply for small business loans (which is actually inevitable if you ever dream to grow your business), you're going to have to prove that you are actually a business.
Lenders and investors will ask to see your proof of business registration, along with other application requirements before approving you for a loan. If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.
PROFESSIONALISM: Having a registered business name makes a difference when you approach clients and partners. A registered business indicates to customers and would-be customers, that you are not a fly-by-night operator and are here for the long term. Consequently, what this does is that it helps you convert customers more easily and efficiently than you can when running the business as an individual.
OPENING BUSINESS ACCOUNTS THAT ARE DIFFERENT FROM PERSONAL ACCOUNTS:
When a business is registered, then a unique business account could be opened for the business, which spells professionalism and uniqueness. Part of being a professional is to have your customers pay your company or business for goods and services through a dedicated business account which bears the particular business/company's name, and not through your personal bank account.
In order to have a bank account in your business name, you will require your business to be registered under the business name category, and the certificate of name registration as well as other Certified True Copies would be required by the bank or other financial institutions.
SUPPLIER ARRANGEMENTS: If your business is registered, it makes you eligible to receive supplier discounts that you wouldn't normally receive as an unregistered business. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the relevant business registry of the country.
Have you registered your business name? If No, Then What's Keeping You? If Yes, How easy or difficult was the process? Tell us all about it by commenting below.
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PLEASE DO NOT HESITATE TO SHARE THIS POST IF YOU HAVE FOUND IT INTERESTING.
If you wish to register your business name today? Click HERE
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