Is a Business Name a company?

Is a Business Name a company?

February 19, 2020

The answer is NO. A BusinessNameis not considered as a companyunder Nigerian Law. A business name is incorporated under PART B while a company is incorporated under PART A of the Companies and Allied Matters Act Cap C20 LFN 2004.

A Business name is considered to be the registration of a trade name for purposes of business whereas a Company incorporated is a separate legal entity. Also, it is common knowledge that in Nigeria a Business Name is easier to register and the cost incurred in registering same is minimal compared to the cost of registering a company. A business name also differs from a company in the sense that it can have one person as a proprietor or two or more as partners, whereas a Limited company has a minimum of two shareholders, but can appoint directors and managers to operate the company and must have a secretary.

A person having a Business name which is the proprietor is personally liable for debts and liabilities incurred by the business. While, companies are generally separate entities from the shareholders and hence separately liable for acts, debts, and omissions unless where the court lifts the veil of incorporation for reasons stipulated in the Companies and Allied Matters Act.

Team 618 Bees

618 Bees can help you quickly and easily register a Business Name or Company. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission.

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

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Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

  • Why is mutual assent important in a contract?

    This is one of the key elements of a contract because is shows the meeting of the minds of both parties

  • When can I start renewal of the registration of my product(s) with NAFDAC?

    You can start renewal 6 months to the date of expiry.

  • What is personal data?

    This is any information that can be used to identify an identifiable human person such passport photograph.

  • Does a trademark search automatically reserve my trademark name?

    No, a trademark search does not automatically reserve that which is sought to be trademarked. A search ascertains whether that which is sought to be trademarked is available or violates any existing trademark.

  • Do I have to physically drop off my product sample at NAFDAC office?

    No, you can choose to have it sent to NAFDAC office

  • What is the first thing I must do to register a business in Nigeria?

    To register a business in Nigeria; you would need to conduct a name search of the business. You can achieve this using your CAC-CRP account.

  • Can I trademark my logo and name separately? Why is this a good idea?

    Yes you can. The advantage is that it gives you the opportunity to have more than one logo or the opportunity to change your logo easily as opposed to registering the name and the logo as one trademark.

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