Making a change in the corporate status of your business ,such as upgrading your business name to a limited liability company,or to a limited liability partnership,or limited partnership is normally expected because change is a constant factor in life, As such changing your business name to a limited liability company is very legal. How do you change or convert a registered business name to limited liability company in Nigeria?
At certain points in time, a business name might desire to restructure and reposition the business for higher goals.
A business name may also be attracting investors who are interested in investing in the business. such stage in the life of the business is not strange, in life the only thing constant is change.
How to change a registered business name to a limited company in Nigeria
it is paramount to know that, only a registered business name can be changed to a company, a business name is a name and style which a person carries on business with.
it is instructive to note that, Business names are categorized as Enterprise and Ventures.
It can be registered by a sole proprietor businessman or woman it can be registered as partnership.
FEATURES OF A BUSINESS NAME
- Control and ownership: The control and ownership vest in the sole owner or partners
- legal personality: in terms of legal personality,It is not legally distinct and separate from the owners unlike limited liability company, however you can conduct business using the name.
- Branding: A business name adds to the branding of your business.A registered business name can be used to open a business account in the bank.
- Purchasing of Shares: because a business name cannot purchase shares, or acquire assets, the partners or owners must do so in their personal names.
- Contract : Yes a business name can enter into contract.
How to Change Business name to a limited company in Nigeria
in order to change a registered business name to a company, you must satisfy the below stated requirements.
- You must provide your updated annual returns: what is an annual return? find out here if you have not been filing, you need to file for the year, you must pay default and penalty for each year. Filing an annual returns requires alot of carefulness.
2. Obtain Consent to Re- Register the business name to Company : in this case you make application to the corporate affairs commission through an accredited agent portal,the application will be seeking the consent of the registrar General to upgrade the business name to a limited, the accredited agent will make payment for the consent of the registrar general of the corporate affairs commission ,in return the commission considers this application and gives an approval, with a reservation code for the period of 60 days,during this 60 days the accredited agent is expected to complete the following: filling of the online forms for the directors, filling the online forms for the secretary, filling the online forms for the share holders and allotment of shares, filling the online forms for the witness and persons with significant control of the company, uploading the identity cards of the directors, secretary and shareholders. And persons with significant control of the company, filling the address, phone numbers of the directors, secretary and submitting their scanned signatures
3.Payment of cac Registration fees and Firs Stamp duties:the accredited agent is expected to make payment to the commission for the upgrade of the business name to limited.
The fees for this upgrade is calculated as per the share capital of the company.
when this is done the accredited cac agent is expected to proceed through his portal and make Payment to federal inland revenue service (stamp duty), this is calculated as per the value of the share capital of the company,ad valorem, the payment can be done online using remita code.
when this is completed ,the applicant is expected to fill cac form 7, and other cac forms for the upgrade of the the business name to limited.
The next procedure is to upload the business name certifcate with the supporting document to the commission .
This is followed by uploading signatures,identity cards of the directos and secretary of the company.
The application can now be submitted for cac approval through the accredited agent portal. if the accredited agent fails to make stamp duty payment for the registration, he cannot proceed.
4. Substitution of The Business Name to Limited:In this case you will be mandated by the corporate affairs commission to make payment to susbstituting the business name,to a limited company,because two similar names can not exist on cac records.
5.Query-This is not pqart of the procedures ,but your application may be queried where the corporate affairs commission considers the application and picks out something not appropriate may be in the object of the company,address not being specific,inconsistency in share allotment.
the accredited agent is expected to comply with the query before the approval can be granted
6. Approval and issuance of certificate- the corporate affairs commission after due consideration of the application, approves the registration and issues the certificate and the memorandum and articles of association of the company, in this case the accredited agent must ensure to download them within 7 days or pay another fee before he can access the documents again from cac.
contact-businesspilotworldwide@gmail,com or call/whatsaap 07088969065 for assistance on this process.