A. Business Name

• Suitable for sole proprietors and partnerships.
• Business and owner are legally the same entity( no separation of liability).
• Simpler and cheaper to register than a company.
• Can later be converted to a limited liability company.

B. Companies

• A separate legal entity distinct from its owners.
• Can own property, sue and be sued, and continue in perpetuity.

Types include:

• Private Company Limited by Shares (Ltd) – Common for SMEs; liability limited to unpaid shares; minimum of 1 director.
• Public Company Limited by Shares (Plc) – For large-scale businesses; can offer shares to the public; stricter compliance; minimum of 2 directors.
• Company Limited by Guarantee (Ltd/Gte) – For non-profits; no share capital; members guarantee a fixed amount if wound up.
• Unlimited Company – Rare; no limit to members’ liability.

C. Incorporated Trustees

• For NGOs, charities, clubs, religious bodies, and associations.
• No share capital; assets are held in trust for the organisation’s objectives.
• Managed by a Board of Trustees recorded with the CAC.
• Profits cannot be distributed to members; must be reinvested into the organisation’s mission.

2. Key Requirements

• Proposed Name – Must be unique and comply with CAC rules; some names require consent.
• Details of  Owners/Directors/Trustees – Names, contact details,  addresses, occupations, and valid ID.
• Registered Address – Official location for legal notices.
• Nature of Business or Objectives – For companies/business names: business activities; for trustees: charitable or non-profit objectives.
• Governing Documents – Memorandum & Articles of Association for companies and Constitution for incorporated trustees.

3. Benefits of Registration

• Legal Recognition – Your entity is officially recognised under Nigerian law.
• Brand Protection – Exclusive rights to use your registered name although trademarking is advisable for double protection.
• Credibility – Boosts trust with customers, donors, and partners.
• Access to Funding – Banks and investors often require proof of registration.
• Perpetual Succession – For companies and incorporated trustees, the entity continues despite changes in membership.
• Limited Liability – For companies, owners’ personal assets are protected from business debts (except in cases of fraud).

4. Post-Registration Compliance

• Annual Returns – File with CAC to keep your status active.
• Update Records – Notify CAC of any changes in directors, shareholders, trustees, or address.
• Tax Registration – Register with the Federal Inland Revenue Service (FIRS) for tax purposes.
• Maintain Records – Keep statutory books and accurate financial statements.

Conclusion

Whether you choose a business name, company, or incorporated trustees, registration provides the legal foundation for your operations, protects your brand, and opens up opportunities for growth.

Need help with CAC registration?

At Chenyung Orokodo & Co, we offer professional registration services for companies, business names, and incorporated trustees, ensuring full compliance with CAMA 2020.

Contact us today to start the process.