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 firstname.lastname@example.org, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission.
The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached