Name reservation is a critical step in the business registration process with the Corporate Affairs Commission (CAC) in Nigeria. It ensures that your preferred business name is held exclusively for your use, preventing others from registering it within the reservation period. If you’re planning to register a business name, company, or incorporated trustee, understanding how long name reservation lasts and how to maximize this period is essential.
In this article, we will explore:
What name reservation means
How long name reservation lasts
Steps to reserve a business name with CAC
What happens after the name reservation period expires
Tips to ensure a smooth name reservation process
By the end of this guide, you’ll have all the information you need to navigate name reservation effectively.
What Is Name Reservation?
Name reservation is the process of securing exclusive rights to a business name with the Corporate Affairs Commission (CAC). It ensures that no other person or entity can use the reserved name within the specified period, giving you time to complete your business registration.
The name reservation step also serves as a preliminary check to ensure that your desired business name is unique and complies with CAC regulations.
How Long Does Name Reservation Last?
In Nigeria, a name reservation with the CAC lasts for 60 days from the date of approval. During this period:
Exclusivity: The reserved name cannot be registered by any other person or business entity.
Action Required: You must complete the business registration process within this timeframe to avoid losing the reservation.
If you fail to register your business within the 60-day period, the reserved name will be released and made available for others to reserve or register.
Steps to Reserve a Business Name with the CAC
Follow these steps to reserve a business name with the CAC:
- Create a CAC Account
Visit the CAC website (www.cac.gov.ng) and create an account. This step is necessary for accessing CAC’s online services. You don’t need to create account if you want an accredited agent to handle your CAC registration for you. Even if you create an account, you will not be able to carry out post registration services except you are an accredited agent.
- Log In to Your Account
Use your login credentials to access the CAC portal.
- Conduct a Name Availability Search
Check if your desired business name is available. The system will indicate whether the name is already in use or conflicts with existing registrations.
- Pay the Reservation Fee
Pay the required fee (currently ₦500 as of this writing) through the online payment portal.
5. Submit a Name Reservation Application
Complete the online name reservation form, providing alternative name options in case your first choice is not approved.
- Await Approval
The CAC typically processes name reservation applications within 24 to 48 hours. Once approved, you’ll receive a notification confirming the reservation and its validity period.
What Happens After the Reservation Period Expires?
If you fail to register your business within the 60-day reservation period, the following occurs:
- The Name Becomes Available: The reserved name will be released back into the pool of available names.
- Risk of Losing the Name: Another person or entity can reserve or register the name.
- Need for Renewal: You can reapply to reserve the same name, but this is subject to availability and may involve additional fees.
How to Extend a Name Reservation Period
The CAC does not provide an automatic extension for name reservations. However, you can:
Reapply for Reservation: If your reserved name expires, you can submit a fresh name reservation application. Ensure you act promptly to avoid losing the name to another applicant.
Tips for a Smooth Name Reservation Process
To ensure a successful and stress-free name reservation, follow these tips:
- Choose a Unique Name
Select a name that is distinct and not similar to existing registered names. Avoid generic terms or names that violate CAC naming guidelines.
- Submit Multiple Options
Provide alternative names during your application to improve your chances of approval.
- Register Your Business Promptly
Begin the registration process immediately after your name is reserved to avoid expiration.
- Track Your Reservation Expiry Date
Set reminders for the expiration date of your reservation to ensure you act within the 60-day window.
Frequently Asked Questions (FAQs)
- Can I reserve a name for more than 60 days?
No, the CAC allows name reservations for only 60 days. You can reapply to reserve the name if it expires.
- How much does name reservation cost?
The CAC charges a fee of ₦500 for name reservation.
- Can I change a reserved name?
Once a name is reserved, you cannot modify it. You’ll need to submit a new reservation application if you wish to change the name.
Conclusion
Name reservation with the CAC is valid for 60 days, offering a valuable opportunity to secure your preferred business name while preparing your registration documents. To avoid losing your reserved name, act promptly and ensure you complete your registration within the reservation period. By understanding and adhering to CAC’s guidelines, you can streamline the name reservation process and set your business on the path to success.
If you have further questions or need assistance with name reservation or business registration in Nigeria, our team of experts is here to help. Contact us today for professional support!
Adebayo Oluwole is a seasoned chartered accountant and a member of Chartered Institute of Taxation of Nigeria with over twenty years of experience. His expertise cuts across accounting, auditing and taxation. He has helped hundreds of individuals translate their dreams into reality by offering them pre and post registration services. His focus is to help SMEs grow in the marketplace.