Company Registration With Cac - Which One Between Ltd And Business Name?

It is important to get your business registered as the benefit far outweigh the cost.
For a business, the type of registrations you chose to register is dependent on the type of business, nature and the scope you want to go about it.

A small food seller in a shop does not need to register the business at that level, but a food delivery and event catering service must register the company for the business to thrive.

A number of people have lost out on vital opportunities simply because they did not register their company and for those who register, did not open a corporate bank account.

There are majorly two categories for Company Registration: Business Name and Limited Liabilities.

The business name is majorly for a small scale, one man business or a small enterprise.
You can use this to set up a big structure, import and export business, a school, an eatery, an online business, a cyber cafe, a publishing firm, a supermarket etc but the company's liabilities would be on the owner.

There can be two or more people as owners - called Partners- in this business also.
Sure, you will have corporate bank account and you can get loans from the bank though it will be tagged personal loan and there is a limit to how much exposure the bank can take for this.


The Limited Liability Companies means there are at least two owners of the business -called directors- and that would give more people confidence to want to do business with you. It also means the directors would be automatic promoters of the business instead of just one person and you know that where one would chase a thousand, two would chase ten thousand.

This business is recognized by law as an entity on its own, different from the owners, the liability of the company is not on the owners as there will be limit to their exposures. People, banks and international bodies are more pleased dealing with limited companies especially when you have highly resourceful people of integrity and goodwill on your board of directors.

A limited liability company can bid and get contracts from the government but not so for business name.
A limited liability company can easily get loans from banks unlike the business name/enterprise/venture.
A limited liability company also can take on a varying related nature of business as contained in the memorandum and article of association.

It is necessary to think through before deciding which one to go for as a number of factors may be applicable for your kind of business.

We can help you through this option in deciding which type of company you should register.

Feel free to contact us on 09051919262 or via e-mail askus@rhegos.com.
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You will succeed,

Sunday Obanubi
@sundayobanubi