2018 is a golden year for the Nigerian businessman.
Earlier in the year, we had a major win this year as regards policy, when the Nigerian Senate made history by passing the Companies and Allied Matters Act (Repeal and Re-enactment) Bill which without a doubt is the biggest reform bill in Nigeria in over 28 years. This bill, in summary, removes all unnecessary regulatory provisions for small companies.
While we are still having our victory dance over the bill passed, another good thing has landed!
Converting your business name to a limited liability company just got easier! The whole process of having to apply for a cessation of the business name and returning the business name certificate is no more.
Are you dancing? You should be, especially if you had previously registered a business name and then tried to change it to a limited liability company. You must have been told a very uncomfortable process that involved the risk that during the cessation period of a Business Name to a company, there is a chance you may lose your existing name, though not certainly.
Let’s then get down to what you will need to get this conversion done.
- Evidence of payment of annual returns for the business name
As a registered business name, you need not submit annual returns within the first year of the registration of your business. However, for subsequent years you must file your annual returns and pay the applicable fees not later than the 30th day of June every year.
You will, therefore, need to present evidence of payment of your annual returns for the years in which your business name has been registered.
- Application for consent to register the same name as Limited Liability Company Next up is you applying for the consent of the Registrar- General of the Corporate Affairs Commission (C.A.C.) to register the same business name as a limited liability company.
You will be required to attach the following documents to your application
- A copy of your Business Name Registration Certificate;
- A copy of your Form BN1
A consent letter of the proprietors of the business approving the registration of the limited liability company in the same name as that of the business name.
After the successful application and the consent granted by the Registrar-General, the next procedure is the home run. You will simply need to register a limited liability company in the name with the usual requirements for company registration.
If the process of registration is strange to you, you should read our step by step guide of the process, or you can pass on the stress to us.
At DIYlaw, we take away all the stress involved in getting your business registered and we make sure all angles are covered in your registration process. Simply click here to get your business name registration or company incorporation done easily and affordable.
To wrap it all up, you can also read the advantages of incorporating your business here.