5 Benefits Of Registering Your Business Name In Nigeria

5 Benefits Of Registering Your Business Name In Nigeria
Registering your business name with the Corporate Affairs Commission (CAC) is one of the requirements for running a business in Nigeria.
Many people interested in registering their business names keep wondering on why they should register it. Apart from the fact that the constitution mandates you to do so, what and what do you stand to benefit from having your business incorporation in Nigeria?

What is business name registration?

The Corporate Affairs Commission (CAC) is an autonomous body charged with the responsibility of regulating the formation and management of companies in Nigeria. It was established in 1990 vide Companies and Allied Matters Act no 1 1990 as amended, now on Act cap C20 Laws of federation of Nigeria.
Incorporating your business involves submitting the required documents including your business address, what you do and other things about the proposed business.

Who doesn't need a business name?

While writing this article I came across a post in business.gov.au showing instances that one doesn't require to register a business name. Business.gov.au is an Australian website so you still need to verify the information with your country's Corporate Affairs Commission to avoid any issues in the future.
You don't need to register your business name if business name is your, or your partner's, first name and surname.
For example;
• Mbakwe Duru has a jewellery business named 'Mbakwe Duru'. As his business is trading under his own name, he doesn't need to register for a business name.
• Olamide Abedebayo  has a floral business named 'Beauty Flowers'. As his business is not trading under his own name, he will need to register the business name 'Beauty Flowers'.

Advantages of registering your business name

Having looked at the instances where one doesn't need to register for a business name. We'll also check out the benefits of registering your business as an individual.

• It gives you a unique identity

There is this pride that comes with one registering his/her business with the Corporate Affairs Commission (CAC). It gives a feeling of fulfilment as your business now exists on its own with its own address and name.
In addition to this, incorporating your business also makes you look serious and attracts more customers to you.

• Government patronage

Depending on the nature of your business, you might at one point or the other want to strike a business deal with any governmental body. In this case, one of the first things that will be required from you is your certificate of incorporation. It'll show that your company doesn't only exist, but also fully recognised by law.
Instances that involves you working with the government include when you want to apply for a contract to either supply your product or deliver a service.

• Government Policies

The Nigerian government have economic policies that it has set up to ease business in Nigeria. In the present, different government bodies are becoming interested in the Small and Medium Scale Enterprises (SMEs). They are now being recognised as a way of boosting the economy.
To benefit from these economic policies, you have to prove that your business is recognised  by the constitution by showing your certificate of incorporation. No government body or investor would want to waste resources in funding a charlatan.

• Access to Loans

Government bodies and other financial institutions give loans to Small and Medium Scale Enterprises (SMEs) interested in growing their businesses. The loans can be used for growing an already established business venture.
Before any financial body will grant you a loan to grow your business, you'd be required to present a certificate of incorporation. So if you intend applying for a loan as an entrepreneur in the future, I'd suggest you register your business name as soon as possible.

• Business trip to other country

I know we all want to travel out of Nigeria at one point or the other. It could be for a business trip, holiday or even to reside in the other country. having a business certificate can increase your chances of getting a Visa especially when you intend going on a business trip.

Are these reasons not enough? Did I add that registering your business is also important for continuity? I forgot but it's cool I've remembered it now.
I know you've heard of big businesses like Cadbury and Nestlé. They all started small and grew over the years. The original founders of these companies might no longer be alive but the companies are still existing, even bigger.
What more? Don't forget to drop us a comment and share with your friends. Also check out our next article on the Top 10 qualities of a successful entrepreneur.
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