Dear ...

Why settle for a business name registration when you want a Ltd company registration?

Anyhow you look at it, the benefits of a Ltd liability company far outweigh that of a business name.

Don't get me wrong, I'm not saying that you can't register a business name and do excellently well.

I'm just saying that if you actually want to build a proper company where the interests and shareholdings of the members are clearly stated in the company's official document, then it's best to just start with a limited liability company however small.

Business name upgrade is not automatic...

you would have to pay and apply for the registrar general's consent to upgrade, a consent code will then be given to proceed.

You have to also file your annual returns with the CAC up to date.

So for a business name that was registered in 2012, you start paying annual returns from 2014 to 2020.

That's six (6) years of annual returns FIRST.

This has to be paid and filed before you can even apply for consent to upgrade or do any other post-incorporation activity.

After filing the annual returns and obtaining the consent code which may take anything from two to four weeks, you would then need to start the step-by-step process for registering a company all over again.

You will need to pay all the necessary filing fees and stamp duty fees for registering a new company as well.

An upgrade is good because it helps you maintain the old name you were using as an enterprise (business name).

For example, if your business name was twinkle little star services, when you do an upgrade, your company name would now be Twinkle little star serviced Ltd.

The effect of a business name upgrade however is that you cannot maintain both the enterprise and the Limited liability company together.

Once you upgrade, you automatically lose the business name or enterprise.

I would normally advise a fresh company registration as against a business name upgrade because it's easier and quicker to do a fresh registration than it is to do an upgrade.

However, if you already did a business name registration and you are very particular about the name, maybe because it has gone viral and people already know your brand by the name, then you can opt for an upgrade.

If you don't have any emotional attachment to the name and you can afford to go by a different name, then by all means...

do a fresh company registration

If you still decide to go ahead with the business upgrade...

it's absolutely fine.

At least you have been properly guided...

So you know why you want this...

Instead of this!!!

To your #Legalasense

.

-Barinaada.