Business

Business Name vs Incorporated Company (Part 2)

(Cont. from Part 1)…

In addition to the above, the following are instances in which the registration of a business name would be unnecessary:

  • where the addition merely indicates that the business is carried on in succession to a former owner of the business;
  • where two or more individual partners have the same surname and an “s” is added at the end of the surname; and
  • where the business is carried on by a receiver or manager appointed by any court.

A good example of names that require registration would be trade names with additions like &Co, &Sons, & Brothers etc as these are obvious additions that are distinct from the names of the individuals or corporations running the businesses.

Advantages of a Business Name

cost benfits

As earlier mentioned, the major advantage a business name has is the protection of the name from simultaneous or subsequent use by other owners of businesses. Hence, the owner of a registered name can sue for the use of his trade name by another person. Another advantage a business name has is the fact that the owner of the business may have commenced business before registering the name. The name however must be registered within twenty eight days from the beginning of the business.

Other advantages in using a business name include: the cheapness in registration as it attracts the lowest cost of registration with no need for stamp duty; ease of dissolution unlike a company; less formality in administration; and enjoyment of a corporate name in litigation amongst others.

Documents required for the registration of a business name

to do

Any individual, firm or company seeking to register a business name is expected to forward a Statement (CAC/BN/A1) containing the following particulars to the Registrar of Business Names (also the Registrar-General of Companies) at the CAC:

  • the business name or, if the business is carried on under two or more business names, each of the business names;
  • the general nature of the business;
  • the full postal address of the principal place of business;
  • the full postal address of any branch of the business;
  • where the registration to be effected is that of a firm-
  • the present forenames and surnames, any former forenames or surname, the nationality and, if that nationality is not the nationality of origin, the age, the sex, the usual residence and any other business occupation of each of the individuals who are partners; and
  • the corporate name and registered office of such corporation which is partner;
  • where the registration to be effected is that of an individual, the present forenames and surname, any former forenames or surnames, the nationality of origin, the age, the sex, the usual residence and any other business occupation of the individual;
  • where the registration to be effected is that of a company, the name and registered office of the company; and
  • the date of commencement of the business.

Please note that in addition to the above, where the registration to be effected is that of an individual or a firm consisting of individuals, certified copies of the passport photographs of the individuals is meant to be submitted to the Registrar of Business Names.

(to be continued)

Oluwatosin Phillips

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