In Nigeria, individuals and corporations can operate under a registered business name or incorporate a limited liability company. A registered business name doesn't include suffixes like "Limited" or "PLC." After registration, a certificate of incorporation will is issued by The CAC.
Why Convert to a Limited Liability Company?
Business owners may choose to convert their registered business name to a limited liability company for various reasons, including:
- Business expansion
- Upgrading their business image
- Accessing more benefits and advantages
Requirements for Conversion
To convert a registered business name to a limited liability company, submit the following to the Corporate Affairs Commission (CAC):
1. Formal application to the Registrar General
2. Original Business Name Certificate
3. Authorization letter (if applied on behalf of the proprietor)
4. Evidence of up-to-date annual returns payment (N1,000/year, with N2,500 penalty for late payment)
Annual Returns Payment Procedure
1. Download and print the Business Name A/R Form from the CAC website (Jan 1 - June 30, except registration year)
2. Fill and sign the form
3. Submit for assessment at CAC
4. Generate Remita code and pay online or at designated banks
5. Keep the teller and signed Remita receipt
Conversion Process
1. Pay N10,000 via Remita to CAC
2. Submit documents with three copies of payment evidence
3. Wait for Registrar General's approval in Abuja
4. Register the previous name as a limited liability company upon approval
Conclusion
Converting a registered business name to a limited liability company requires updating annual returns and following the outlined steps. Seek assistance from CAC-accredited agents or lawyers if needed.
Contact Information:
Email: info@fuciaservices.com
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