{"id":4484,"date":"2018-10-01T17:34:29","date_gmt":"2018-10-01T17:34:29","guid":{"rendered":"https:\/\/www.aziza.com.ng\/read\/?p=4484"},"modified":"2024-11-10T10:10:29","modified_gmt":"2024-11-10T10:10:29","slug":"cac-guidelines-for-name-reservation-for-limited-liability-companies","status":"publish","type":"post","link":"https:\/\/www.aziza.com.ng\/read\/cac-guidelines-for-name-reservation-for-limited-liability-companies\/","title":{"rendered":"CAC GUIDELINES FOR NAME RESERVATION FOR LIMITED LIABILITY COMPANIES"},"content":{"rendered":"

CAC GUIDELINES FOR NAME RESERVATION FOR LIMITED LIABILITY COMPANIES<\/a><\/h2>\n

When registration a business or company in Nigeria<\/a>, one of the first step is to search the availability of the intended name or company. This process is call “NAME RESERVATION”<\/p>\n

In this blog, we explained the Name Reservation Guidelines for Limited Liability Companies Registration in Nigeria<\/a>.<\/p>\n

INTRODUCTION
\nThe Corporate Affairs Commission (CAC) was established by the Companies and\u00a0Allied Matters Act 1990, (CAMA) AND Cap C20 LFN 2004. The Commission is the\u00a0Agency of Government charged with the responsibility of the Registration of\u00a0Companies, Business names and Incorporated Trustees.<\/p>\n

A company name is a distinctive characterization by words which a company is\u00a0known and distinguished from others.
\nUnder section 27(1) of Companies and Allied Matters Act (hereinafter referred to as\u00a0\u201cthe Act\u201d), the memorandum of every company shall state, inter alia, the name of\u00a0the company.
\nThe principal sections governing reservation of names for limited liability companies\u00a0otherwise known as availability are sections 29 and 30 of the Act.<\/p>\n

 <\/p>\n

Read: Business \/ Company Registration in Nigeria Requirements<\/a><\/h2>\n

 <\/p>\n

PROHIBITED NAMES by Corporate Affairs Commission (CAC)<\/a><\/h2>\n

These are names that are, (except otherwise provided), absolutely\u00a0disallowed. They include;
\n(a) Names that are identical to the name of an existing registered company, or\u00a0nearly resemble that name as to be calculated to deceive; except where the\u00a0registered company is in the course of being dissolved or wound up and has\u00a0consented in the manner acceptable by Commission.<\/p>\n

(b) The use of \u201cChamber of Commerce\u201d is prohibited unless the company is limited\u00a0by guarantee.<\/p>\n

(c) Names that are capable of misleading as to the nature of its activities i.e.\u00a0offensive, undesirable or contrary to public policy; such words include\u00a0\u201cgambling\u201d, \u201cprostitution\u201d, and the like are all prohibited.
\n\u201cPromiscuous Directory Limited\u201d, \u201cPhonographic Film Production\u00a0Limited\u201d, and \u201cOccultism Clique Nig. Limited\u201d Pick Pocket Ventures\u00a0<\/strong>Limited. The list is in-exhaustive.<\/strong>
\nThese names are offensive, contrary to public policy and therefore not registrable.<\/p>\n

(d) Names that are vague, deceptive or misleading, example of such names are\u00a0\u201cS.S.S Security Services Limited\u201d NNPC Oil and gas Limited\u201d \u201cNDDC\u00a0Nigeria Limited \u201cCorporate Affairs Centre Limited\u201d National\u00a0Assembly Enterprise\u201d Fake Drug Prevention Investments Limited\u201d.
\nThese are misleading names that tend to suggest a relationship between the\u00a0companies and government or government agencies.<\/p>\n

(e) Names that are similar to or tend to violate any existing trade mark or\u00a0business name registered in Nigeria unless consent of the owner has been\u00a0sought and obtained,<\/p>\n

Note:<\/strong> while in the case of business names and Trademarks, the owner of the right\u00a0can consent to the use of a similar or identical name; in the case of a\u00a0Company, before such consent is accepted, it must be shown that the\u00a0consenting company is in the course of being dissolved, so that after the\u00a0dissolution, there will be no two companies on the companies register with\u00a0the same name (see section 30(1) paragraph (a) and (d).
\nNote:<\/strong> The Commission can also consent to the use of a registered business name\u00a0as a limited liability company upon the application of the business name\u00a0owner(s).
\nThe practice whereby a company grants consent to co-exist with another\u00a0company sharing identical or similar name has no basis in law.<\/p>\n

 <\/p>\n

Read: Business\/ Company Registration Service in Nigeria<\/a><\/h2>\n

 <\/p>\n

RESTRICTED NAMES\/WORDS\u00a0by Corporate Affairs Commission (CAC)<\/h2>\n

These are names or words that are not absolutely prohibited but are subject\u00a0to prior consent of the Commission and evidence of same should be attached\u00a0to the application for availability. These words are:
\n(a) \u201cFederal\u201d \u201cNational\u201d \u201cState\u201d \u201cLocal Government\u201d, or \u201cMunicipal\u201d, or\u00a0any word which suggest patronage of or relationship with government or any\u00a0agency or department of government.
\n(b) Contains the words \u201cBuilding Society\u201d or \u201c\u201dCo-operative\u201d
\n(c) Contains the words \u201cGroup\u201d or \u201cHolding\u201d
\n(d) Contains the words \u201cCertified\u201d, \u201cAmalgamated\u201d, \u201cConglomerate\u201d,\u00a0\u201cConsortium\u201d, \u201cNiger Delta\u201d, \u201cSouth\u201d, \u201cMiddle Belt\u201d and any other
\nregion of the Federation.<\/p>\n

THE USE OF THE WORD \u201cNIGERIA\u201d:<\/h2>\n

The word \u201cNIGERIA\u201d or NIGERIAN \u201cis neither a restricted nor a prohibited\u00a0name under the provisions of CAMA. A literal interpretation of the name\u00a0suggests that it is indigenous to Nigeria and does not therefore suggest\u00a0Government patronage. The consent of the Commission need not be sought, if\u00a0the word does not come as a prefix e.g. ABC (Nigeria) Limited.<\/p>\n

WORDS\/NAMES USED IN COMPANY LIMITED BY GUARANTEE<\/h2>\n

Section 26 of the Act provides that, where a company is to be formed for\u00a0promoting commerce, art, science, religion, sports, culture, education,\u00a0research, charity, or other similar objects, and the income and property of the\u00a0company are to be applied solely for the promotion of its objects and no portion\u00a0thereof is to be paid directly or indirectly to the members of the company\u00a0except as permitted by the Act, the company shall not be registered as a\u00a0company limited by shares but may be registered as a company limited by
\nguarantee. Thus schools, institutes, educational\/research centres, foundations\u00a0and other bodies may be registered under this section provided their objects\u00a0fall within the scope of the above provisions.<\/p>\n

It should be noted however that the word centre, school and institute may also\u00a0be registered as a company limited by shares depending on the context they\u00a0are used. E.g. Centre de optical limited, ABC Business centre limited, citadel\u00a0international school limited, citadel institute of management studies limited, etc.<\/p>\n

<\/h2>\n

Read: Debt Recovery\/ Collection Service in Nigeria<\/a><\/h2>\n

 <\/p>\n

RESEARCH CENTRE \/INSTITUTE<\/h2>\n

While there is no dispute that schools, colleges, polytechnics, Universities may\u00a0be registered as companies limited by shares, there has been an unending\u00a0controversy on whether research institute\/centres could be registered as a\u00a0company limited by shares. There is no law prohibiting the registration of\u00a0research institute\/centre as a company limited by shares. This position is\u00a0further strengthened by the fact that polytechnics and universities are also\u00a0centres of learning and research.<\/p>\n

THE GENERIC WORDS\/NAMES AND THE TWO WORDS RULE<\/h2>\n

Generic names or words are those names or words that are general in nature\u00a0and do not specify any business or profession. In other words they do not give\u00a0a distinctive meaning in themselves; neither do they make a radical difference\u00a0as compared to specific words. Example of such names includes: ABC services\u00a0limited, ABC Enterprises Limited, ABC Investment Limited.<\/p>\n

THE TWO WORDS RULE:<\/strong>
\nThis rule applies where there exists in the companies register a generic name or a\u00a0name is followed by generic word(s) then similar name can only be approved if it is\u00a0accompanied by two distinguishing words. Thus the existence of any of the above\u00a0generic name can bar the others from being registered. To register \u201cABC\u201d in the\u00a0face of any of the above names, two distinguishing words must be employed. For\u00a0example:-
\nABC Global Concept Limited, ABC Integrated Business Limited<\/strong>
\nABC Worldwide Ventures Limited, ABC Dynamic options Limited<\/strong>
\nABC Intercontinental Concern Limited<\/strong><\/p>\n

EXCEPTION TO THE TWO WORDS RULE:-<\/strong>
\nIt should be noted that, there are certain names that the presence of two words do\u00a0not make a difference. These are names that suggest the same nature of Business.\u00a0It is common with those specific names as hospital, properties, school, etc.<\/p>\n

    \n
  1. Binta Farm Ltd (Existing) with<\/span><\/strong>\u00a0Binta Agro Allied Ltd (Application)<\/li>\n
  2. Abc Hospital Ltd (Existing)\u00a0with\u00a0<\/span><\/strong>Abc International Clinics Ltd (Application)<\/li>\n
  3. Olumawo Nursery And Primary School\u00a0Ltd (Existing) with<\/span>\u00a0<\/strong>Olumawo Kindergarten School Ltd\u00a0(Application)<\/li>\n
  4. Babamba Property Develop Ltd (Existing) with<\/span><\/strong>\u00a0Babamba Real Estate Development Ltd (Application)<\/li>\n<\/ol>\n

     <\/p>\n

    Buy: School ERP or Software with Mobile App in Nigeria<\/a><\/h2>\n

     <\/p>\n

    EXPLANATORY NOTES:<\/strong>
    \nThe presence of the word \u201ccompany\u201d or \u201cNigeria\u201d or both in a name does not make\u00a0a difference and as such does not count as words in a name. The reason is that\u00a0every company registered whether with the word \u201ccompany\u201d or not is a company\u00a0and every company registered in Nigeria whether it contains \u201cNigeria\u201d or not is a\u00a0Nigerian company. Example\u201d Dangote Limited (existing) Dangote Company Nigeria\u00a0Limited cannot be registered; as the rules do not take in to reckoning the words\u00a0\u201cNigeria\u201d and \u201ccompany\u201d<\/p>\n

    USE OF \u201cSTATE\u201d OR \u201cLOCAL GOVERNMENT<\/strong>
    \nWhere the name of a State or Local Government is used without the addition of the\u00a0word \u201cState\u201d or \u201cLocal Government\u201d the current practice is to require consent as a\u00a0condition precedent. This practice being without legal basis should be\u00a0discountenanced. Examples: Sokoto Shoes where the proposed name is followed by\u00a0the word \u201cState\u201d or Local Government\u201d or \u201cArea Council\u201d or \u201cMunicipal consent of\u00a0the State or Local Government concerned is a Condition Precedent.<\/p>\n

    Examples: Sokoto State shoes & Leather processing Limited, Bwari Area\u00a0Council Cereal Processing Company Limited, Tafawa Balewa Local\u00a0Government Farms Limited.<\/strong><\/p>\n

     <\/p>\n

    For help and other assistance, click<\/span><\/strong> contact us<\/a>:
    \n<\/span>or call
    \nMobile: +234 8033 185 898<\/strong><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

    CAC GUIDELINES FOR NAME RESERVATION FOR LIMITED LIABILITY COMPANIES When registration a business or company in Nigeria, one of the first step is to search the availability of the intended name or company. This process is call “NAME RESERVATION” In this blog, we explained the Name Reservation Guidelines for Limited Liability Companies Registration in Nigeria. […]<\/p>\n","protected":false},"author":1,"featured_media":11635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[298],"class_list":["post-4484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-or-company-registration"],"acf":[],"yoast_head":"\nCAC GUIDELINES FOR NAME RESERVATION - Aziza Goodnews<\/title>\n<meta name=\"description\" content=\"As\u00a0CAC\u00a0ACCREDITED AGENTS and No. 1 Business in Support Services in Nigeria, we do Prompt and Genuine Business or\u00a0Company Registration Services in Nigeria.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aziza.com.ng\/read\/cac-guidelines-for-name-reservation-for-limited-liability-companies\/\" \/>\n<meta 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