Is a Business Name a company?
The answer is NO. A BusinessNameis not considered as a companyunder Nigerian Law. A business name is incorporated under PART B while a company is incorporated under PART A of the Companies and Allied Matters Act Cap C20 LFN 2004.
A Business name is considered to be the registration of a trade name for purposes of business whereas a Company incorporated is a separate legal entity. Also, it is common knowledge that in Nigeria a Business Name is easier to register and the cost incurred in registering same is minimal compared to the cost of registering a company. A business name also differs from a company in the sense that it can have one person as a proprietor or two or more as partners, whereas a Limited company has a minimum of two shareholders, but can appoint directors and managers to operate the company and must have a secretary.
A person having a Business name which is the proprietor is personally liable for debts and liabilities incurred by the business. While, companies are generally separate entities from the shareholders and hence separately liable for acts, debts, and omissions unless where the court lifts the veil of incorporation for reasons stipulated in the Companies and Allied Matters Act.
Team 618 Bees
618 Bees can help you quickly and easily register a Business Name or Company. Log on to our website www.618bees.com or email email@example.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission.
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