Do you intend to start a business in Nigeria?
If your answer in the positive, then you should register your business with the Corporate Affairs Commission (CAC).
This registration requirement broadly applies to Nigeria’s nationals and other foreigners. But there could be a few exceptions.
This post is concerned with the registration of small enterprises and firms.
One huge advantage of having a company registered with the CAC is to ensure that a business name already chosen is not registered or used by another individual.
When an entrepreneur registers a business named ‘ZUBAL DAL Ventures’, others are barred from registering similar names that might cause confusion in the identity of businesses. As such, names such as ‘SUBAL DAL Ventures’ or ‘SABUL DUL Ventures will not be approved by the CAC.
Another advantage of registering your business with CAC is that it helps to build and solidify a reputation in the marketplace. With strategic partners, clients, creditors, and customers. Registration gives clients the confidence that they are dealing with a reputable organization. This helps to build an substantial level of trust.
Another significant benefit of registering a business is that an enterprise can own a corporate account in its name. This gives more credibility and trust with customers, banks, suppliers and other business partners. A corporate account can only be operated when a business has been duly registered. The banks in Nigeria will request that the registration documents be submitted before the account is set up.
At different stages of growth of the business, business owners might need to raise funding for the business, they will need to show prospective lenders and investors that they are already registered to operate as a business. No bank or investor will inject capital into a business that is not registered.
In sum, the thoughts shared in this post present a compelling case for registering a business. It helps to build credibility and an identity for the business. Without this twin qualities, a business is dead on arrival.
If you have got any comments or questions, please use the comment section.