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Do you want to expand your business to be known all over the world? In this article am going to direct you on the difference between a business name and company registration on the CAC portal.
Read More: New CAC Post Incorporation Fees And Requirements 2024 in Nigeria
We will provide a summary of the steps involved in determining whether a business is registered in Nigeria, and the difference between bn and rc. The procedure and requirements for company registration in Nigeria were covered in my article.
Whichever one you want to do
You can Contact the CAC Agent on WhatsApp
What Is The Meaning Of BN In The Company?
The BN is an abbreviation that simply means a business name is a choice of name a business owner has to choose for his/her business to be legally recognized or identified with the Corporate Affairs Commission.
The business name registered gets a number with the Corporate Affairs Commission but not a company for purposes of corporate affairs matters.
A company limited by shares is required to have a director(s) and shareholder(s) while a business name is only required to have a sole proprietor or partners (proprietors)
The Benefit Of Business Name(BN)
- It links clients with your goods or services.
- It makes business go straightforward.
- Choose a simple pronounced business name, this way the potential consumers wouldn’t find it tough when there is a need to ask for guidance to your place.
- It helps you to pick a name for your company that is easy to comprehend and will enable people to know the service you can offer.
Requirements for Registering A Business Name For Unlimited Companies
The Corporate Affairs Commission’s (CAC) requirements for registering your company name are listed below;
- National Identifying Code (NIN)
- Name of the Company Availability
- Registration Fee Business Documents
- CAC Application Form Passport Photo, birth certificate, driver’s license, passport, and permanent voter card
What Is The Meaning Of RC In The Company?
A Limited Liability Company is identified by the abbreviation “RC,” which stands for Registered Company. According to the definition given above, RC is for a “Company Limited by Shares,” which consists of two or more shareholders.
If a firm gets Registered when it complies with the standards of corporate affairs like a limited liability company, limited partnership, and limited liability partnership, these aforementioned firms might be limited by shares or limited by guarantee or limitless.
Benefit Of Register Company (RC)
- Helps to grant you loans and also register your business.
- Your business will be seen by people as a legit and reliable business.
- By you have a registered business, you can travel abroad for any business trip like a conference or seminar of your choice.
- Registering your company helps to bring potential customers to your business or investment.
How To Check If Business Name Is Available For CAC Registration
Let’s go into what CAC is all about – CAC was established under the company of the Allied Matters Act Of Nigeria by law to enable the business to flow well in Nigeria but you follow their necessary procedures before your company can be registered. The requirement you need to provide include:
- The name of your company
- A registered address
- Name of directors
- Shareholders
- Shareholding formula, etc.
- A filing fee will be determined by the Corporate Affairs Commission.
- Then the CAC will give you a certificate of incorporation to your company meaning that your company is now fully registered, containing your company’s name, and RC number whether (private/public)company.
How to Check if a Company is Registered in Nigeria
In Nigeria, CAC has opened a free portal for any business known as know Your Business (KYB) follow the steps below to check your company is registered in Nigeria:
- Click on the website of the “corporate affairs commission”
- Look down when scrolling to see “public Search”
- Enter your business name or your RC number to searching box on your phone or laptop.
- Supply the business name or RC number in the search box and click “Search”
- Pop up, to display the full name of your company, office address, and RC number to check whether your company is registered or not.
You can also choose to get the certificate of incorporation of your company, but you would be required to pay a sum on the CAC’s portal.
Business Identification Number?
It is known as the Registered Company Number (RCN) in Nigeria, though some prefer to name it the Registration Number (RN) or RC. It is known as a company number, registration number, or simply as a CRN in some nations around the globe.
It is used to recognize your business and confirm that it is a registered organization with the Corporate Affairs Commission. When a company is established, CAC automatically assigns the company registration number.
Anyone can check the legitimacy of your business on the CAC database using your company registration number (CRN) or RC.
Differentiate Between Business Name (BN) And Company Registration (RC)
- RC stands for Registered business, which is your legally recognized business registration number, while BN stands for Business Name.
- While BN is given to sole proprietors or one-man businesses, RC is issued to limited liability companies with shareholders.
- Except for law and accounting firms, a company registration by shares can have a maximum of 50 while business name shareholders are a maximum of 20 partners.
- A business name can only be changed into a limited liability company, while a company registration can decide to go public and be transformed into a public limited company (PLC).
- In a limited liability company, if a shareholder dies; the other director of the company will continue to run the business upon the death of any shareholder or director while in a business name is automatically dissolved upon the death of its founders unless there are other surviving partners to carry on the business.
The CAC Company Verification’s Restrictions Regarding Business Names
Although the CAC website provides a free means of verifying company registrations, you must manually access the site and enter your name or RC number. You must go through this procedure again for each company you want to verify.
As a big corporation, partnerships and business relationships are created every day, so manually verifying each one would be tiresome, time-consuming, and inefficient. When you consider that business verification is only the first in a succession of due diligence procedures, this becomes even more apparent.
How To Check Your Company’s Registration Status And The CAC Registration Code
I will outline the essential actions you must take to check and download your CAC approval note and obtain the availability code required to complete your online business registration here.
The approval note, which you must download from the CAC portal, plainly displays the availability number.
HOW TO KNOW CAC REGISTRATION CODE
- Go to the CAC login portal: Click on “Sign in”
- Enter your username and password and click on “Log In”
- Click on the “Name Search” tab Click on the “My Reservation History” tab
- You will see a list of your approved business names
- Click on the “Action” button and click on “view payment history”
- You will be asked to save the pdf file; save it somewhere you can find it easily.
- Once the download is complete, open the pdf file.
How To Register A Business Name In Nigeria Online With Corporate Affairs Commission (CAC)
- Open your internet browser Launch your Google Chrome or Safari browser.
- Visit the CAC Pre-Incroporation Portal at https://pre.cac.gov.ng/home on your internet browser.
- Check to see if your company name is available for registration to determine whether your company name is accessible for registration, click the Search Now icon.
- Save your company name and enter the name of your chosen company.
- Click on Register to open a CAC account or choose “create account”.
- Pay a $500 reservation fee for your company name.
- Enter your firm information and availability code from the menu.
- Log in to your CAC account.
- Complete the CAC business registration form.
- Pay the fee of 10,000 to register your company.
- Submit your personal and company documents in original copies. Select “Submit”
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