Business Name Reservation refers to the process of reserving a specific name for a business before registering it with the appropriate government agency. It is a preliminary step taken by entrepreneurs or business owners to secure a unique and distinctive name for their business entity. The Business Name Reservation process is typically carried out with the Corporate Affairs Commission (CAC), which is the regulatory body responsible for the incorporation and regulation of businesses in Nigeria.
The purpose of Business Name Reservation is to ensure that the proposed business name is available and not already in use by another registered business. By reserving the name, the business owner prevents others from registering a business with the same name during the reservation period.
The Business Name Reservation process involves the following steps:
1. Name availability search: The business owner or their representative conducts a name availability search with the CAC to determine if the proposed business name is unique and not already registered by another entity. This search helps to avoid conflicts with existing businesses and ensures the availability of the desired name. The application includes details such as the proposed business name, the nature of the business, the business owner’s information.
2. Payment of fees: The applicant is required to pay the prescribed fees for the name reservation process.
3. Name reservation approval: If the application is approved, the CAC issues a Name Availability approval to the applicant. This approval confirms the reservation of the business name for a specific period, usually 60 days, during which the applicant is expected to complete the registration process.
It’s important to note that Business Name Reservation does not provide full legal protection or ownership rights over the name. It only reserves the name for a limited period, allowing the applicant to proceed with the subsequent steps of business registration. To obtain comprehensive legal protection and formal recognition as a business entity, the applicant must proceed with the registration process, which involves submitting additional documents, paying registration fees, and fulfilling other statutory requirements.