Embarking on your entrepreneurial journey? One of the first legal steps is registering your business with the Corporate Affairs Commission (CAC). But should you register a business name or a company name? While they may seem similar, there are key distinctions between the two.

Why Your Business or Company Name Matters

Your business or company name is crucial. It’s the identity customers associate with your brand, and it plays a major role in building loyalty, trust, and consistency. The name you choose can influence how your brand grows and is perceived.

What Is a Business Name?

A business name is essentially the title under which you operate your business. Whether you’re running a sole proprietorship or a partnership, your business name is your public identity. Registering it with the CAC legally allows you to trade under that name.

Once registered, you’ll receive a Certificate of Registration and a Certified Extract, ensuring your business is compliant with the law. The requirements include:

– Two preferred business names

– Business and residential addresses

– Nature of your business

– Identification (NIN, voter’s card, or driver’s license)

– Passport photograph

– Phone number and email address

What Is a Company Name?

A company, on the other hand, is a separate legal entity, distinct from its owners. When you register a company, you create a structure that offers limited liability, meaning the owners are not personally responsible for the company’s debts. Companies can be private or public and are further categorized as limited by shares, limited by guarantee, or unlimited.

To register a company, you’ll need to provide details such as:

– Two preferred company names

– Company and residential addresses

– Nature of the business

– Memorandum and Articles of Association

– Share allotment

– IDs and signatures of directors

Business Name vs. Company Name: Key Differences

Now that you know what a business name and company name are, let’s look at how they differ:

– Legal Identity: A business name doesn’t create a separate legal entity, but a company name does.

– Liability: Business owners are personally liable for debts in a business name, while liability is limited in a company.

– Structure: A company offers more complex structures for raising capital, processing loans, and acquiring assets.