Sometimes business owners build brands only to discover that they have no legal right to the brand’s publicized business name. Ammy Atelier is a perfect example of this scenario.
Ammy Atelier runs a womenswear business with a strong presence on Instagram and every other social media platform. Her customers sing praises of her well-defined brand identity but her business isn’t registered. Coincidentally, another fashion brand registered with CAC using the same business name as Ammy Atelier. Now, Ammy Atelier wants to register her business but CAC says the name isn’t available. To continue her business, Ammy Atelier has to rebrand both offline and online. This is one out of the many risks of not registering your business.
Statistics from the Bank of Industry shows 17 million micro, small and medium enterprises (MSMEs) in Nigeria are not registered with the Corporate Affairs Commission, the business regulatory body in Nigeria. This is to tell you that 99% of businesses are likely to be denied some opportunities and are open to risks.
Quite a number of people fail to register their business due to ignorance, while others view it as a way to evade taxes. It is clear from this article that there are more benefits to registering your business than its perceived disadvantages.
Who is CAC?
The Corporate Affairs Commission, popularly known as CAC is the body that registers businesses and corporations in Nigeria. The body regulates and supervises the formation, incorporation, management, and winding up of business entities and until a business has been registered by the CAC it can’t be regarded as a legal entity.
What are the benefits of registering my business with CAC?
Registering your business name with the Corporate Affairs Commission (CAC) of Nigeria has a lot of benefits you can explore to turnaround your business. Without undergoing the CAC company registration, your business might be denied of the following privileges;
- With a registered business certificate, you can open a corporate account. Statistics show that customers feel more comfortable making payments into a corporate account because they know they can track their money if anything goes wrong.
- The first step towards structuring your business is registration. Running a business without registration is like running a hobby. By registering your company you improve the reputation and perception of your business with prospective clients.
- Registered businesses are eligible to apply for loans, grants, and access to investors. You can get loans and access a myriad of opportunities.
- Business registration makes it easier for you to travel internationally and attend business conferences in any country.
- The Nigerian Youth Service Corps (NYSC) sends interns to companies that are registered.
- A registered business is likely to survive even if the CEO dies or becomes incapacitated.
Even if your business has been in existence for a while, you should still take the initiative to get it registered. Having worked so hard to build a business, you don’t want to lose the opportunity to scale and build a business entity that would outlive you.
YOU CAN READ ABOUT THE STEPS ON HOW TO REGISTER YOUR BUSINESS WITH CAC HERE.