{"id":4488,"date":"2018-10-02T13:07:33","date_gmt":"2018-10-02T13:07:33","guid":{"rendered":"https:\/\/www.aziza.com.ng\/read\/?p=4488"},"modified":"2024-11-10T10:10:01","modified_gmt":"2024-11-10T10:10:01","slug":"cac-guidelines-of-name-reservation-for-business-names","status":"publish","type":"post","link":"https:\/\/www.aziza.com.ng\/read\/cac-guidelines-of-name-reservation-for-business-names\/","title":{"rendered":"CAC GUIDELINES OF NAME RESERVATION FOR BUSINESS NAMES"},"content":{"rendered":"

Corporate Affairs Commission (CAC) GUIDELINES FOR\u00a0NAME RESERVATION FOR\u00a0BUSINESS NAMES<\/a><\/h3>\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 Corporate Affairs Commission (CAC) Name Reservation Guidelines for BUSINESS NAMES Registration in Nigeria<\/a>.<\/p>\n

The law governing availability and reservation of business name is contained\u00a0in Section 579 (1) and (2) of CAMA which provides regulation for the\u00a0approval of availability of business names.<\/span>
\nThe provisions of Section 579 under Part B and Section 30 under Part A of\u00a0the Act affect and complement each other mutually.<\/span>
\nIt is however noteworthy that, the basic difference between limited liability\u00a0company (LLC) and business names (BN) is the share capital requirement in\u00a0LLC which does not exist in BN. Therefore, any name that suggests a\u00a0business with minimum capital requirement should be refused under this part\u00a0of the Act.<\/span><\/p>\n

 <\/p>\n

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

 <\/p>\n

Examples of businesses with share capital that should not be allowed under\u00a0this part are: Bureau de change, bank, insurance, security\/guards, registrars,\u00a0trustees, issuing house, fund managers, underwriter, pension fund\u00a0administrators,\/custodians, air transport, finance company, primary mortgage\u00a0institution, etc.<\/span><\/p>\n

RESTRICTED WORDS\/NAMES<\/strong>:- <\/span>
\nA literal reading of Section 579(1) of the Act\u00a0indicates that the whole subsection deals with restricted words and thus words<\/span>
\nmentioned there under may be registered with the consent of the Commission.\u00a0That however is not the correct position of the law; as the sub-section also contains\u00a0prohibited words\/names.<\/span><\/p>\n

Section 579(1) (a) & (b) which is similar both in substance and object with\u00a0Section 30 (2) (a),(b) and(c) provide the requirement of Commission\u2019s\u00a0consent before any name containing \u201cNational<\/strong>\u201d \u201cGovernment<\/strong>\u201d \u201cMunicipal<\/strong>\u201d\u00a0\u201cState<\/strong>\u201d \u201cFederal<\/strong>\u201d \u201cCo-operative<\/strong>\u201d can be registered, However, unlike Section\u00a030, Section 662 did not mention the words \u201cregional<\/strong>\u201d and \u201cchartered<\/strong>\u201d while<\/span>
\n\u201cregional<\/strong>\u201d may be allowed subject to Commission\u2019s consent (since the word\u00a0relates to a component of government and administration), whether or not\u00a0the word \u201cchartered\u201d should be allowed depends on how the word is\u00a0employed. Where the word chartered is employed after the name of a\u00a0natural person who satisfies the Commission that, having regard to the\u00a0relevant laws, he is qualified to use that title, such a name should be\u00a0allowed. <\/span><\/p>\n

Examples of such applications are:<\/span>
\nNasiru & Bello Chartered Accountants\/Ifeoma and Seun Chartered\u00a0Secretaries, Shamsudeen Bakori & Co Chartered Accountants. However,\u00a0where the word is employed at the beginning of the name of a business\u00a0entity or institution such as:<\/span>
\nChartered Institute of business, Chartered Fashion Design and Tailoring, Chartered\u00a0Builders and Construction, the application should be denied since the word\u00a0\u201cchartered\u201d applies only to institutions backed or supported by legislation.<\/span><\/p>\n

Section 579(1) (c) mentioned \u201cChamber of Commerce\u201d \u201cBuilding Society\u201d\u00a0\u201cGuarantee\u201d\/Trustees\u201d \u201cInvestment\u201d \u201cBank\u201d \u201cInsurance\u201d or any word with\u00a0similar connotation as belonging to the class of words that may be registered\u00a0subject to the Commission\u2019s consent. Paragraph (d) of the same section went\u00a0as far as legalizing the registration of similar and identical names provided\u00a0the consent of the Commission is sought and obtained.<\/span>
\nHowever, a careful search through other laws and regulations indicates that\u00a0not all words\/names mentioned in section 662(1) (C) and (d) may be\u00a0registered notwithstanding the Commission\u2019s consent. E g.<\/span><\/p>\n

 <\/p>\n

You need a Lawyer\/ Legal Services in Nigeria<\/a>?<\/h2>\n

 <\/p>\n

CHAMBER OF COMMERCE<\/strong>:- <\/span>
\nSection 30 (1) (b) prohibits the registration of the\u00a0name chamber of Commerce as a company limited by shares but as a company<\/span>
\nlimited by guarantee. The implication of the provision is that \u201cChamber of\u00a0Commerce\u201d should not be registered as a profit sharing venture but purely for the\u00a0promotion of commerce. It follows therefore, that chamber of commerce cannot be\u00a0registered as a business name.<\/span><\/p>\n

BUILDING SOCIETY:<\/strong> – Building Society is not suitable for business name\u00a0registration as it is capable of misleading as to the status of the business.<\/span>
\nGUARANTEE:-<\/strong> This word especially when it appear at the end of a name\u00a0should not be allowed as it is capable of being misconstrued as a company\u00a0limited by guarantee e.g. Catering Development Service Guarantee.<\/span>
\nHowever, where the word comes at the beginning of a name, it may be\u00a0allowed subject to Commission\u2019s consent Examples:<\/span>
\nGuarantee Catering services, Guarantee mechanical Services, Guarantee\u00a0Tailoring services.<\/span>
\nTRUSTEE, BANK, INSURANCE<\/strong>:- Under regulations made by SEC, CBN,\u00a0NAICOM, etc the above businesses can only be transacted by legal entities\u00a0with certain minimum share capital. A business name has no share capital\u00a0and therefore cannot utilize any of the above words.<\/span><\/p>\n

INVESTMENT & CO-OPERATIVE:- The words investment and co-operative\u00a0should be allowed subject to Commission\u2019s consent as provided by the combined\u00a0effect of section 579(1) (b), (c) and (e).<\/span><\/p>\n

IDENTICAL AND SIMILAR NAMES:- A literal reading of Section 579(1)(d)\u00a0suggest that, a business name may be registered notwithstanding the fact that, it is\u00a0identical or similar with an existing registered business name, company or\u00a0incorporated trustees; provided the prior consent of the Commission is sought and\u00a0obtained. Such interpretation will however defeat the rule against passing off and\u00a0consequently leads to absurdity. Thus, the interpretation applicable under section\u00a030(1)(a) should apply with the same force to section 662(1)(d) of the Act.<\/span>
\nFurthermore, the two words rule applicable under part \u2018A\u2019 shall apply mutatis\u00a0mutandis to part \u2018B\u2019<\/span><\/p>\n

PROHIBITED NAMES:-<\/strong><\/span>
\nSection 579(2) prohibits the registration of any name which:<\/strong><\/span>
\n1. Contains any word which in the opinion of Registrar is likely to mislead the\u00a0public as to the nationality, race or religion of the person by whom the business\u00a0is wholly or mainly owned or controlled.<\/span><\/p>\n

This provision may appear difficult to implement at availability level since the only\u00a0material before the approving officer is the proposed business name(s) and\u00a0some details relating to the presenter of the application. An availability\u00a0approving officer may not know the nationality, religion or race of the\u00a0proprietor so as to determine whether or not the name presented is capable of<\/span>
\nmisleading as to the proprietor\u2019s nationality, race or religion.<\/span><\/p>\n

 <\/p>\n

Read: How to Obtain DPR Permits for Oil & Gas Services in Nigeria<\/a><\/h2>\n

 <\/p>\n

2. In the opinion of the Registrar, the name is deceptive or objectionable; in that\u00a0it contains reference direct or otherwise to any personage, practice or\u00a0institution or is otherwise unsuitable for a business name. Categories of these\u00a0deceptive names may include such applications recently witnessed viz.<\/span>
\nBarrack Obama Enterprises, barrack Obama Tailoring Service, Umaru\u00a0Musa Yar\u2019Adua Barbing Saloon, University of Lagos Barbing Saloon,\u00a0NNPC Cafeteria, PTDF laundry Services etc.<\/span><\/strong><\/p>\n

Unless it could be established that the persons and institutions identifiable with the\u00a0names are the proprietors or at least consent to the use of the name, such shall not\u00a0be allowed for business name registration.<\/span><\/p>\n

REGISTRATION OF SCHOOLS AND HIGHER INSITUTIONS:<\/strong><\/span>
\nAs application under part \u201cA\u201d, the use of a name of state or local government or\u00a0<\/span>area council without the addition of the word \u201cstate\u201d or \u201clocal government\u201d to the\u00a0<\/span>name as the case may be, should also be allowed under part \u201cB\u201d. However, where\u00a0<\/span>such names are used with the addition of the word \u201cstate\u201d or \u201clocal\u00a0<\/span>government\u201d, or \u201cArea Council\u201d or \u201cMunicipal\u201d prior consent of the<\/span>
\nCommission or state\/local government concerned should be sought and obtained.<\/span><\/p>\n

Examples:<\/strong> – Zamfara Textile Ventures (no consent)
\nZamfara State Textile Ventures (consent is required.)<\/p>\n

 <\/p>\n

Buy: School ERP or Software with Mobile App in Nigeria<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

Corporate Affairs Commission (CAC) GUIDELINES FOR\u00a0NAME RESERVATION FOR\u00a0BUSINESS NAMES 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 Corporate Affairs Commission (CAC) Name Reservation Guidelines for BUSINESS NAMES […]<\/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":[303],"class_list":["post-4488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cac-name-reservation"],"acf":[],"yoast_head":"\nCAC GUIDELINES OF 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-of-name-reservation-for-business-names\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CAC GUIDELINES OF NAME RESERVATION FOR BUSINESS NAMES\" \/>\n<meta property=\"og: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 property=\"og:url\" content=\"https:\/\/www.aziza.com.ng\/read\/cac-guidelines-of-name-reservation-for-business-names\/\" \/>\n<meta property=\"og:site_name\" content=\"Aziza Goodnews\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/web.facebook.com\/azizaNigeria\" \/>\n<meta property=\"article:published_time\" content=\"2018-10-02T13:07:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-10T10:10:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aziza.com.ng\/read\/wp-content\/uploads\/2018\/10\/CAC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"577\" \/>\n\t<meta property=\"og:image:height\" content=\"313\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Aziza Nigeria\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Aziza Nigeria\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/\"},\"author\":{\"name\":\"Aziza Nigeria\",\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/#\\\/schema\\\/person\\\/a29bc9acbb64b1e017ed494d99d5459d\"},\"headline\":\"CAC GUIDELINES OF NAME RESERVATION FOR BUSINESS NAMES\",\"datePublished\":\"2018-10-02T13:07:33+00:00\",\"dateModified\":\"2024-11-10T10:10:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/\"},\"wordCount\":1250,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/wp-content\\\/uploads\\\/2018\\\/10\\\/CAC.jpg\",\"keywords\":[\"CAC NAME RESERVATION\"],\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/\",\"url\":\"https:\\\/\\\/www.aziza.com.ng\\\/read\\\/cac-guidelines-of-name-reservation-for-business-names\\\/\",\"name\":\"CAC GUIDELINES OF NAME RESERVATION - 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