The first decision to make when starting a business in Nigeria is whether to register your business as a Business Name or a Company.
Many people confuse the two, but they are very different.
In this post, we’ll clearly explain the difference between Business Name registration and Company registration, their benefits, and which one is right for you.
What Is a Business Name?
A Business Name is the simplest form of business registration under the Corporate Affairs Commission (CAC).
It is mostly used by sole proprietors or partners who want to run a small or medium-sized business under a registered name.
For example, if you own a clothing brand called “Vee Wears Collections”, registering that name with CAC makes it your official business identity.
Key Points:
- Suitable for small and medium businesses
- Owned by one person or partners
- Cheaper and faster to register
- The owner is personally responsible for debts and losses
What Is a Company?
A Company is a separate legal entity from its owners. It can be a Private Limited Company (LTD) or a Public Limited Company (PLC).
Companies are registered under the Companies and Allied Matters Act (CAMA) and can own properties, enter contracts, sue, and be sued in their own name.
For example, if your business is registered only as a Business Name, you cannot own property or sue in the business’s name. But a registered Company can do so — without involving the owners’ personal names directly.
Key points:
- Has legal protection
- Can have multiple shareholders
- More expensive to register
- Ideal for medium to large businesses
Major Differences Between Business Name and Company Registration
| Feature | Business Name | Company |
| Legal Status | Not a separate legal entity | Separate legal entity |
| Ownership | Owned by an individual or partners | Owned by shareholders |
| Liability | Owner bears full liability | Limited liability for owners |
| Cost | Cheaper to register | More expensive |
| Tax | Personal income tax | Company income tax |
| Structure | Simple and easy to manage | More structured and regulated |
| Investment | Harder to attract investors | Easier to attract investors |
Which One Should You Choose?
It depends on your business goals and vision:
- If you’re starting small or operating as a sole proprietor, choose Business Name Registration.
- If you want to build a structured business, limit personal liability, or attract investors, go for Company Registration.
Frequently Asked Questions (FAQs)
1. Can I change my Business Name to a Company later?
Yes. You can upgrade your Business Name by registering a new Company and transferring your assets.
2. How long does CAC registration take?
Business Name registration usually takes 1–3 working days, while Company registration takes 3–7 working days, depending on CAC processing.
3. Can a Business Name have multiple owners?
Yes, if it’s registered as a partnership.
4. What is the minimum share capital for a Company in Nigeria?
It depends on your business type, but the minimum share capital for a Private Company is ₦100,000.
5. Who can help me register my business?
You can register directly on the CAC portal, or let an accredited CAC agent handle it for you — to avoid errors and delays.
📞 Need Help Registering Your Business?
If you need professional assistance registering your Business Name or Company, Brand Growth can help you from start to finish.
We handle:
✅ CAC registration
✅ TIN certificate
✅ SCUML registration
✅ Annual returns
📞 08111858651
📧 brandgrowthboom@gmail.com