Importance of Registering Your Business Name in Nigeria

Written by Taofeeq Alabi

It’s an accomplishment to rid out years of planning and actualizing your dream of owning a business. Business owners are problem solvers and they contribute immensely to the economy of the nation.

Whilst many businesses run for years without appropriate documentation, they reach a blockade when they discover they share a common name with another business entity. This is a common and quite rampant scenario in the business terrains.

Registering your business name is an essential pillar of your business growth. Most business owners often erode this part of their plan for a later time because “It’s just a business name registration.” Well, it’s much more than that. It’s your identity to protect you and your business.

In this blog post, we explore the importance of registering your business name with the CAC

  • Identity Security 

Businesses need to protect their identity. While identity theft exists, investing years of effort and productivity into your business only to find out you share the same name with another business is frustrating. 

A worst-case scenario is they’re a registered entity. You’re automatically at a loss and your business is at risk of losing investment effort to a registered business.

  • Access to Grants and Loans

By registering your business name, it proves the credibility of your trade. It’ll create a seamless avenue for you to access legitimate grants, loans, and other funding opportunities. If your company name is registered, you can approach any financial institution and request funding to sustain business operations and expand your business. 

  • Branding 

A registered business name gives your business a footing in the market. It’ll also position your business for a long-term commitment to the market. Potential customers and investors will only do business with a legitimate business because it gives them confidence their purchase is safe. 

  • Acquire Contracts

When entering into contracts, partnerships, and collaborations, a registered business name is required. This ensures that your entity is legally binding and it also protects your interests and business rights. Contracts regarding unregistered business aren’t enforceable in court which leads to financial and legal complications.

  • Taxation 

It’s an essential criterion to register your business name for tax purposes. You can easily file tax returns and comply with tax laws without the risk of penalties that may arise from non-compliance. A registered business name grants you access to tax deductions and incentives that aren’t available to unregistered businesses. 

It’s important to protect your identity as a business owner by registering your business name. It instills trust and builds third-party validation from clients, customers, and potential investors.

Ready to start your business name registration? Kindly contact support at help@getprospa.com or call 018890240. We’re more than happy to assist you. 

Your business is invaluable to us 

#TogetherWeProspa💜

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