Upgrading from Business Name to LTD in Nigeria

Upgrading from Business Name to LTD in Nigeria is a strategic move that allows your business to grow with more credibility, structure, and legal protection. Many Nigerian entrepreneurs start their journey with a Business Name registration due to its simplicity and lower cost. However, as your business grows, it’s often necessary to upgrade to a Private Limited Company (Ltd) to enjoy more credibility, limited liability protection, better funding opportunities, and corporate structure.

At [Your Company Name], we help you seamlessly upgrade your Business Name to a fully incorporated Private Limited Company with the Corporate Affairs Commission (CAC) — efficiently and legally.

Why Upgrade to a Private Limited Company?

Here are some key benefits of moving from a Business Name to a Limited Liability Company:

Limited Liability Protection – Your personal assets are separated from your business liabilities.

Better Access to Funding – Investors, banks, and government grants prefer companies with proper corporate structure.

Stronger Business Reputation – “Ltd” adds credibility in the eyes of customers, suppliers, and partners.

Ability to Onboard Shareholders and Directors – Bring in partners, allocate shares, and grow sustainably.

Corporate Structure for Long-Term Growth – Create a professional entity with succession plans and corporate governance.

Conversion of Business Name to a Limited Liability Company

There are a plethora of reasons why an individual would consider converting a business name to a limited liability mostly because there are limitations to the advantages and benefits enjoyed by a registered business name, and the most prominent reason would be for the purpose of expansion of business objects or upgrade of the business name, or for projecting a more professional image. A limited liability company has a lot of advantages accrued to it than a registered business name.

The requirements for the conversion of a business name to a limited liability at the Corporate Affairs Commission are as follows:

The applicant will make a formal application of conversion to the Registrar General of the Corporate Affairs Commission. The applicant will also attach the Original Business Name Certificate to the application.
Where the application is made on behalf of the proprietor of the business name, an authorization letter from the proprietor will be attached alongside the formal application to the commission.
The applicant for the conversion of a business name to a limited liability will submit evidence of up to date payment of annual returns for the business name.

Business name annual return is due for payment from 1^st January to 30^th June each year except the year it was registered.
Download and print in colour the Business Name A/R Form from the CAC website
Fill the Business name A/R Form and append signature on it.
Submit the completed forms for assessment at CAC
Generate the remita code for the assessed amount from remita.net and make payment online or at the designated bank from the remita website.
The applicant will hand over the documents with three copies of the evidence of payment to the commission
Finally, the applicant should keep the teller and signed remita receipt as evidence of payment.

The applicant should make a payment via remita to the Corporate Affairs Commission.
When all this is satisfied and submitted, they would be transferred to the office of the Registrar General in Abuja, who would grant consent for approval when satisfied with the application, but where it is queried, approval will not be given.
Finally, where approval is given, the applicant can commence the registration of the previous name as a limited liability company.

Step-by-Step Guide to Upgrade a Business Name to a Limited Ltd Company

Ensure Compliance
Check Name Availability
Draft and Submit Your Application
Receive Your Consent Code
Complete the Formal Documentation
Pay the Prescribed Fee
Submit Your Forms and Payment Confirmation
Receive Your New Certificate of Incorporation

A registered business name can be converted to a limited where the Proprietor of a business name expands the business

With all the aforesaid, a proprietor of a business name looking to convert to a limited liability company must ensure that the Annual Returns are up to date. An applicant should follow the steps enunciated above for that purpose or contact any CAC accredited agents or lawyers for assistance with the conversion.

Start Your Upgrade Today

Don’t let the limitations of a Business Name hold you back. Take the next step in your entrepreneurial journey with a properly structured company that reflects your growth and ambition.

Website: www.sowprofessional.com

Phone: 07038254989

WhatsApp: 08152451523

Email Address: care@sowprofessional.com