Business registration is not something that is formally required to operate a business. A lot of small businesses operate without any business registration today. However, registering a business is a smart and beneficial choice for you as an entrepreneur.
In this guide you will find out:
- What are the main benefits of business registration
- Requirements for business registration
- How to register your business with Prospa step by step
Benefits of business registration
As a business owner you may think about the business registration as a complicated procedure and ask yourself – is it worth the effort? The answer is – definitely yes. If you are starting a new business or want to grow your current one the importance of business registration can’t be overestimated. Here are several advantages of registering your business:
1. Your business reputation gets stronger.
On registering the business you get a certificate of incorporation. Having the evidence that your business is legally registered makes your business more credible and reputable for potential investors, customers and partners.
2. You protect your business and trademark.
Business registration provides you legal protection of your business, which is important in the current competitive market. It is beneficial to register your business with CAC. Thus, you can be sure that nobody will be able to steal your trademark as your business scales.
3. As a business owner you are legally separated from your business.
You are not personally liable or responsible for business legal issues, and your personal property is protected. If a loan hasn’t been repaid, the bank will be able to withhold your company’s property, but not your personal assets.
4. You can get funding easier.
Being a registered business provides you with credibility and legal business documents to get external funding like investment or loans. There is a better chance to get a loan for a registered business than for a personal applicant.
5. You are eligible for supplier discounts and government contracts.
Suppliers offer special rates for business owners with the official paperwork. Also business registration is a must if you want to apply for government contracts.
6. You can hire full-time employees and pay salaries
As a registered business you can expand your business by hiring full-time employees on a legal basis.
Requirements for business registration
Even if entrepreneurs are aware of the benefits of business registration they are still unwilling to register business because of the long and complicated process and paperwork associated with registration. To register a business you need:
- A notice of the registered address of your business
- Memorandum and Articles of Association (MAA)
- Receipt of payment of your stamp duties
- Consent of the first directors of your company
- Statement of compliance by a legal practitioner
- The minimum limit of share capital required for company registration in Nigeria is NGN 10,000
At Prospa we know that entrepreneurs don’t want to spend time and effort on paperwork and physical bank processes. So we’ve made business registration easy,clear and less stressful.
In fact, everything can be done without leaving your home and using Prospa App.
Prospa member Nicole Chikwe is the founder of The Mummy Summit and creator of Mum’s Worst Day podcast – communities that work to empower and serve millennial mothers in Nigeria. Nicole gives a breakdown of how our business registration process works and how it is beneficial to business owners.
How to register business with Prospa: Step by Step
By registering your business with Prospa you will get:
- A registered business name with the CAC and certificate
- Tax identification number (TIN)
- Your account with Prospa automatically opened on completion of registration
And all the benefits of a registered business mentioned above.
Here are the steps you will need to take to register your business with Prospa.
Step 1. Provide Proprietor information
The proprietor is the owner of the business. The proprietor information is necessary for us to correctly submit your application for business registration. You will be able to add additional proprietors later on.
Step 2. Provide Business Information
We need three proposed business names If one is not available we will use the other. The nature of your business as required by the CAC as well as the principal address of your business. This will determine your tax office.
Step 3. Provide BVN
What is BVN?
BVN or Bank Verification Number is a biometric identification system. The BVN gives each customer a unique identity that can be identified and verified across the Nigerian Banking Industry.
Why Prospa needs your BVN for business registration
We use your BVN to verify your identity. Prospa doesn’t have access to your other bank accounts or transactions. We simply confirm the D.OB and number attached to the BVN.
How to check your BVN
On your Mobile phone and sim card used in BVN enrollment, dial *565*0#. Wait until your number is displayed on the screen of your device. Then copy the BVN and save it in a safe place.
What if you do not have a BVN
Provided you do not have a BVN you will have to enroll for it following the steps below:
Visit any Access Bank branch and complete the enrolment form Your biometric data (fingerprint, photograph and signature) will be captured on the system You will then receive a Ticket ID BVN will be sent to your registered mobile number.
Step 4. Business registration payment
Your payment covers business name registration, courier and delivery cost, TIN/VAT registration. Once concluded your Prospa business account will automatically be opened.
Step 5. Sign the forms
You will be required to sign the forms and send them back for processing. Once your forms have been completed, signed and sent back, your registration will typically take between 2 – 3 weeks after name consideration.
Step 6. Receive your documents
You will receive your CAC pack containing:
- Registration forms
- Business name certificate
- Your TIN and TIN slip
Once you receive documents, your business is legally registered and you can use all the benefits to grow and scale it. Prospa team helps you at each step of the business registration process to make sure everything is clear for you and you have all the necessary information to proceed. Thousands of entrepreneurs have registered their businesses with Prospa and are on their journey to success.
So you don’t have to worry about a complicated process any more. Register your business easily and enjoy all the benefits of managing your business with Prospa.