A business in simple terms can be referred to as an entity engaged in the sales of goods or service for a profit. A business can either be a sole proprietorship or a partnership. A sole proprietorship is a business owned by one person, while a partnership is one owned by 2 to 20 people.
Registering Your Business
A business as a sole proprietorship or as a partnership is registered as a “business name” according to the provisions of the Companies and Allied Matters Act. Business name refers to the name or style under which any business is carried on whether in partnership or otherwise. Registration of business name is not compulsory in certain instances, however in other instances registration of business name is necessary. Business name is registered at the Corporate Affairs Commission (CAC) by the registrar of business names[1].
Instances Where Registration Is Not Required
Registration of business name is not required in certain, these instances include:
- Where the full name of the individual is used, and the case of partnership, where the full names of the partners are used, they can carry on business without registering a business name.
- Where the initials of the first name of the individual and surname of the individual is used, and in the case of a partnership, where the initials of the first names of the partners alongside the full surnames of the partners; registration of business name is not required.
- Where only the surname of the individual is used, and in the case of a partnership only the surnames of the partners are used, registration of business name is not required.
Illustration of Names That Do Not Require Registration For Sole Proprietorship:
Lois Olagoke-Daniel
L. Olagoke-Daniel
Olagoke-Daniel
Illustration of Names That Do Not Require Registration For Partnership
Lois Olagoke-Daniel & James John
L. Olagoke-Daniel & J. John
Olagoke-Daniel & John
Instances Where Registration Is Required
The Companies and Allied Matters Act provides for instances where a business name must be registered, they include[2]:
- In the case of a sole proprietorship where a name other than the true first name and surname of the proprietor is used, the name must be registered.
- In the instance of a partnership where names other than the true surnames and first names of the partners are used, the business name must be registered.
- In the case of a sole proprietorship where a name other than the true surname of the proprietor is used without any addition, except the initials of the first name of the proprietor, the business name must be registered.
- In the instance of a partnership where names other than the true surnames of the partners without any addition other than the initials of the first name of the partners are used, the business name must be registered.
- The addition of any suffix such as “&sons” or “enterprise” to the name of the proprietor(s) must be registered.
Prohibited And Restricted Names
There are certain names that are prohibited and restricted from being registered with the Corporate Affairs Commission. Prohibited names are names that cannot be registered by the Corporate Affairs Commission because of them being conflicted with already registered business names or organizations amongst other reasons. Restricted names however are names that can only be registered with the consent of the Corporate Affairs Commission.
Prohibited names include:
- A name that is identical with or similar to that which any firm company or individual already operates with.
- A name that is similar to any trademark registered in Nigeria.
- Any that is deceptive or objectionable in that it contains reference either directly or indirectly to any person practice or institution.
- Any name that is likely to mislead the public as to the nationality, race or religion of the proprietor(s) of the business.
Restricted names include:
- Any name containing the word, “National”, “Municipal”, “State”, “Federal”, or any other which implies or suggests that the business enjoys the patronage of the federal state or local government.
- Any name containing the word “co-operative”
- Any name containing the words “Chamber of Commerce”, “Building Society”, “Guarantee”, “Trustee” or any similar words.
Finally is important to note that a business name is required to be registered within 28 days after the individual or firm commences business.[3]
[1] Section 813 Companies and Allied Matters Act 2020
[2]Section 814 Companies and Allied Matters Act 2020
[3] Section 815 Companies and Allied Matters Act 2020
