REGISTRATION OF BUSINESS NAME

Ijeoma and Folashade met at the National Youth Service Camp in Kano and became friends, after youth service they decided to start a small business of buying and selling of fabrics in Kano state where they both served ,trading in the name of ‘Two jolly friends textile stores.

One faithful afternoon Alhaji Sanni a cloth merchant came to their shop to discuss with them  on the need to expand their business and also offered to give them goods that are three times of whatever deposit they can make and with the promise to supply the goods the following day.

All effort to reach Alhaji Sanni proved abortive, after six months they saw Alhaji and decided to institute an action against him for collecting money under false pretence contrary to Section 419 of the criminal code in the name of ‘Two jolly friends textile stores’. The case was dismissed on the ground that ‘Two jolly friend’s textile stores’ is not a registered company and does not have a legal capacity to bring an action before a law court.

What is business name?

This is the name or style under which any business is carried on, whether as individual or in partnership with another person(s).The body in charge of registration of business name is the Corporate Affairs Commission.

Registrable names

Surnames of the partners or individual

Surname and forenames of partners or individuals

Initials of forenames of partners

Registration process

The registration process is to be done by a legal practitioner by conducting search at the corporate affairs, collection of application form, payment of filling fees, submission of relevant documents like tax clearance, passports of applicants to mention a few. Registration of business name is to be completed within twenty eight days

Effect of registration

Registration preserve the use of name for those who register under the name therefore no business name or company can be registered under the same name. This will make the true identity of the person who trade under the name.

Default of registration

Section (581) of the companies and Allied Matters Act provides that every individual or partner that is required to be registered but failed to do so shall be guilty of an offence ad liable on conviction to a fine of N50 for everyday during which the default continues.

From the fore going we would have seen that registration of company /business names is not just important but failure to do so when necessary will amount to a violation of the law. 

Thank you

Oyenike Alliyu-Adebiyi Llb(hons)BL