Business Mind- How to register your business legally.
First of all, is your business legally registered?? if no why not? How can anyone say they own a business when it doesn’t really and legally exist? For some of these people, it’s just plain ignorance; they don’t know or understand the importance of getting a business registered. The others, who aren’t totally ignorant, just choose to avoid the upfront cost of registration when they start their business. Let me educate on the reasons you need to register your business and how to go about it.
- It gives you a unique identity and protects the image of your business-There is a certain pride that comes with the identity of your own business. It’s no longer that big idea you’ve had in your head all these years. It’s now a real thing that legally exists; with its own name and address. Doesn’t that sound pretty great?
- It protects you from personal liability- This is one of the biggest reason why many people have to register their business. Without the legal protection of limited liability, you could lose your business and personal property if something goes wrong. Why wait and find out?
- It makes you look serious and attracts more customers- These days most customers, especially corporate customers, expect a serious and responsible business to be registered. In fact, most companies will not do business with an unregistered business.
- It’s easier to get bank credit and investment from investors- Every now and then most businesses need loans. For banks, there are basically two categories of loans; Personal and Business Loans. They’re both totally different. As a result, most banks will gladly lend you money to buy a new car or house if you have a registered business.
- It’s important for continuity sake- I dont think anyone wants a “one hit wonder” kinda business. Nestlé, Cadbury, Coke and Honda. Do these names ring a bell? Of course they do. These names are big multi-billion dollar businesses that have existed for decades. In fact, most of the people who formed these companies have been dead for a long time but their business isn’t, why? Because they got it registered and kept the company growing.
With that being said here is how to go about registering your company in Nigeria-
- Go to http://new.cac.gov.ng/home/registration-steps/
- Check for availability of proposed company name and Reserve a new Name
- Complete pre-registration form
- Pay filing and Stamp duty fee. Just close eye and pay it, you won’t regret it.
- Prepare the signed scan copy of your pre-registration documents for upload such the Previous form you filled, Memorandum and Article of Association (MEMART), Recognized form of identification for Director(s)/Subscriber(s) and Secretary and Evidence of payment to CAC. (If you don’t know what they are, just ask Google)
- Upload the scanned documents for processing
- Submit the original copies of the documents uploaded at step 6 to the CAC office you had selected in exchange for your certificate and the Certified True copies of the documents.
Fin!!!! You are now a legal business. It is quite easy, Won’t take you up to a day, just ensure to have all the necessary documents prepared and scanned. Note – this process is only for businesses in Nigeria, different countries, different rules.