If you want to engage in a business as a sole proprietor or in partnership with another person(s) with easy management and less formal administration, you may register a Business Name. Registration of a Business Name protects the Name from being used by any other person or any group of persons for trade or business in Nigeria. And if you discovered that someone else trades eonomine or is using the name to pass off your business, you can unsheathe the sword of the law for your defence and protection. Registering a Business Name also affords you the opportunity of maintaining account(s) with any commercial bank in Nigeria in the registered Name of the business.
A business name may be registered by any of the following persons:
- An individual.
- Two or more individuals (not exceeding 20 persons).
- An individual or individuals and a corporate body or corporate bodies.
- A corporate body.
- Two or more corporate bodies.
Not until recent times, you cannot sue or be sued in your Business Name since Business Name is perceived by law as a Name with which you only wish to be known in Business or trade. It therefore does not afford legal personality. However, in peculiar circumstances, the Lagos State High Court Rules and Magistrates’ Courts Rules, and Rules of Courts of other States that have incorporated the procedure, now allow actions in the name of Firms that may be registered as Business Name.
To register a Business Name requires simple procedure and less cost. At first, you must have proposed name(s) that is registrable. For a guide, the following names cannot be registered as business names:
- Names similar to an existing or reserved name.
- Names that are deceptive, offensive, undesirable or misleading.
- Names that fall under any class of businesses requiring a share capital.
- Names that are contrary to public policy.
- Names that are similar to any registered trade mark.
When your name gets approval, the next stage is registration. Approval of names is now within 24 hours. The requirements for the registration of business names include the following:
- Evidence of approval of name.
- Duly completed online Business Name Form.
- Two passport-sized photographs in case of individuals and photocopy of certificate of registration together with certified true copy of resolution in case of a corporate body.
- Proficiency certificate where applicable.
- Updated Annual Returns Filing in case of a corporate body.
- Payment of fees.
A business to be registered as Business Name is only allowed by law to operate for 28 days before registration, else penalty would be charged for late registration for each day of default.
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