Business Name vs Company Registration in Nigeria: What’s the Difference?
Starting a business in Nigeria is exciting—but choosing the right legal structure is crucial. Should you go with business name registration or opt for a limited liability company registration (commonly known as company registration)?
This article breaks down the key differences, pros, and cons, so you can confidently make the right decision.
What is Business Name Registration in Nigeria?
Business name registration is a simple and affordable way to formalize your business with the Corporate Affairs Commission (CAC). It’s ideal for sole proprietors, freelancers, and small business owners.
Key Features:
Registered under your full name or a brand name
Not a separate legal entity
Personal liability for business debts
Minimal documentation required
What is Company Registration (Limited Liability Company)?
Company registration in Nigeria creates a separate legal entity that protects the owners’ personal assets. It’s best suited for entrepreneurs planning to grow, attract investors, or work with corporate clients.
Key Features:
Also called limited liability company (LLC) registration
Requires at least one director and shareholder
The company can sue and be sued
Owners’ liabilities are limited to their shareholding
Business Name vs Company Registration: Comparison Table
| Feature | Business Name | Company Registration (LLC) |
|---|---|---|
| Legal Status | Not a separate entity | Separate legal entity |
| Liability | Unlimited personal liability | Limited liability for owners |
| Taxation | Personal income tax | Corporate tax |
| Cost | Lower | Higher |
| Compliance | Minimal | Comprehensive |
| Credibility | Lower | Higher – suitable for big contracts |
| Perpetuity | Ends with the owner | Continues regardless of owner’s death |
Frequently Asked Questions (FAQs)
1. Which is better for a small business in Nigeria?
If you’re starting solo with limited capital, a business name works fine. But if you plan to grow, raise funds, or reduce liability, go for company registration.
2. How much does it cost to register a company in Nigeria?
Business name registration: ₦30,000
Company registration (LLC): ₦70,000 depending on share capital
3. How long does CAC registration take?
Business name: 2–5 business days
Company: 3–7 business days
4. Can I upgrade my business name to a company later?
Yes, many business owners start with a business name and later register a company as their operations expand.
Why Choose Taria Hub for Your Business Registration in Nigeria?
At Taria Hub, we simplify business registration in Nigeria—whether it’s a business name or a limited liability company.
We Offer:
Affordable packages for startups and SMEs
Fast CAC processing in Lagos, Abuja, Port Harcourt, and beyond
Help with documents, name availability, and filing
Expert support from registration to post-incorporation
We’ve helped hundreds of Nigerian entrepreneurs start legally—now it’s your turn!
Ready to Register Your Business with CAC?
Let Taria Hub handle your CAC registration while you focus on building your brand.
📞 Contact us today or visit our CAC Registration Page to get started.