BUSINESSES YOU CANNOT REGISTER UNDER THE BUSINESS NAME STRUCTURE



 INTRODUCTION

 The Business Name (sole proprietor or partnership) is the most common type of business structure. The Corporate Affairs Commission (CAC) is responsible for registering businesses in Nigeria and determines what businesses you can register under a particular structure.

There are some businesses you cannot register under the business name structure because of the nature of the business or the industry requirements or compliance.

   We have highlighted some of the businesses that cannot be registered as a Business Name.

• Travel and tour: You cannot register a travel and tour business as a business name but as a limited liability company with a  minimum share capital of 30 million.

• Clearing and forwarding: A clearing and forwarding business can not be registered as a business name but as a Company with a minimum of 5 million share capital.

•  Foreign-owned business: A foreigner that is not a Nigerian cannot register a business name in Nigeria but can do so as a company with a minimum of 10 million share capital.

• Pharmacy: A pharmacy can be registered as a limited liability company and not as a business name.

• Schools: Whether a nursery, primary, Montessori, or secondary school cannot be registered as a business name.

• Betting Company: You can not register a betting company as a business name but as a company. The current minimum share capital is 30 million.

• Private Security:  A private security company cannot be registered as a business name but as a limited liability company. 

• Filing Station:  Filing stations cannot be registered as a business name but as a company.

• Finance Houses: A finance house cannot be registered as a business name but as a company.

CONCLUSION
While you can register most businesses as a business name and later upgrade to a company. Consult a CAC-accredited agent to help you know if your business can be registered under a particular structure. Know the structure of the business you intend to register, the minimum share capital required for registration and the regulatory compliances needed.

By Fathenso Professional Services

The information in this blog post is provided for general information purposes only.