Connect with us
The Sun Nigeria

BUSINESS

Importance Of Registering Your Small/Medium Scale Business Under CAC

In starting a small or medium scale business in Nigeria, one of the steps this scale of business should take is registering their business with the Corporate Affairs Commission (CAC).


Read more about Business


It is the foremost step in establishing your business presence even before you trademark your business with other identities such as business logos, slogans or business symbols.

Importance of registering your small/medium scale business under CAC

Distinct Identification

When you register your business with a particular name, no other person or corporation can make use of that same name within the confines of Nigeria. This is a way of distinguishing your business or corporation from others.

Should you find someone else using your business name to run their operations, you can sue such person or corporation in court. They’ll be fined for damages and disacknowledged as a business operating within Nigeria.

To avoid the consequences of not registering

Section 863 of CAMA 2020 specifically provides as follows: (1) A person or association of persons shall not carry on business in Nigeria as a company, limited liability partnership, limited partnership or under a business name without being registered under this Act.

This section of this law criminalizes operating an unregistered business in the country. Such an individual is liable to be convicted under the law for a fine of 200.00 per day till they have duly gotten their CAC business name registration.

In registering your business under CAC, you get to avoid consequences and run your business freely.


Sign up for the Connect Nigeria daily newsletter


Access to Grants and Loan

To gain access to grants and loans, you need a registered business. Except you are taking a loan on your account, Banks cannot give loans to fund unregistered businesses.

Protects you from liability especially loans.

When registering your business you can either register as a partnership, sole proprietorship, public limited liability or private limited liability company.

If you register your business as a private limited liability(PLC), you have the privilege of not having to pay for loans with your personal property if you are not able to meet up with your loan repayment as when due.

Under a limited liability company, you only have to pay back a fixed sum. Most often, the amount you took without interests accrued.

Gaining Trust

Investors with a keen interest in your business will be able to trust your business enough to invest their money when they know you are registered with the government.

Nobody wants to lose their money. They want to be able to hold a business accountable should it go south and be able to track it down if needed through government assistance.

Professional identity

Nigeria is a country saturated with small and medium scaled businesses sprouting daily. One of the ways to distinguish yourself is to go legal by registering your business name. This will make prospects certain that you know what you have to offer, you know what you’re doing.


Register to attend the Connect Nigeria Business Mixer


Believe it or not, CAC registered business name gives your business a feel of professionalism. It makes your customers at ease when they wish to do business with you. It helps grow your business’s track record of trust.

Saves you the stress of rebranding

Chances are that 10 persons think of your business name daily. It’s not so easy picking a suitable and conventional business name that has not been thought of or used by someone else before.

That moment you’re certain of what business you wish to run as a small/medium scale entrepreneur and what name it should bear, the next step should be to get your CAC registered

business name without further delay to help you avoid the stress of rebranding.

Suppose after a long time of running an unregistered business and making that business name popular, you took the big leap of registering your business name in CAC, only to hear that your business nomenclature has been chosen already?

The thought of it is tiring already. Where would you start rebranding from? Is it your social media handles or your already posted flyers, or logos?

Dear small/medium scale business entrepreneur, get your business name registered under CAC and save yourself a world of stress while you enjoy the benefits of going legal!

Featured Image Source: The Sun Nigeria


Got a suggestion? Contact us: editor@connectnigeria.com

Continue Reading
Advertisement

Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

2 Comments

2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top