Why You Need To Get Your Business Name Registered In Nigeria
Why You Need To Get Your Business Name Registered
Many people have built successful businesses on social media platforms such as Instagram. Why this looks great, majority of these businesses are not registered. While the government will not come after you for not registering your business, except you’re running a regulated business, it remains to be said that you don’t really have a business. What you have is a trade.
The government agency responsible for business registrations in Nigeria is the Corporate Affairs Commission (CAC). Without having your business registered with the CAC, you’re simply carrying out a trade.
Below are some of the reasons why you need to get your business registered with the Corporate Affairs Commission.
1. It protects your business
Because your business has one million followers on Instagram does not make the brand yours. Someone else could still go ahead and register a business with a name identical to your supposed brand. To protect your business from being snatched away, the starting point is to get it registered with the Corporate Affairs Commission (CAC).
While there are other ways to protect your brand such as having a trademark, the first step is to get the business registered. Once your business is registered, no one else will be able to register the same identical name as the CAC will not approve it.
2. It allows you to open a business bank account
Having a business bank is important, not just for accounting and financing purposes, but it also allows customers to trust your business.
To open a business bank account in Nigeria, you need to have your business registered by the Corporate Affairs Commission. As regulated by the Central Bank of Nigeria, only a registered business in Nigeria can have a business bank account.
3. It gives legitimacy to your business
The most important factor in business dealings is trust, be it between businesses or between a business and its customers. For people to trust your business, it has to be legitimate.
The first step in giving legitimacy to your business is to get it registered. When your business is registered, it gives rest of mind to people dealing with you, knowing that they are dealing with a government recognized business.
4. It allows your business to enter into contracts
As you build your business, you will time to time need to enter contracts with business partners. You need a registered business to enter into contracts. After all, you don’t really have a business until you have it registered. Some suppliers will not even agree to deal with you unless you have a registered business.