The first reason why it’s important to formalize a business is so that you can protect the reputation and the name of your business. Just like a person, businesses have names. You have a name and your name will either give you a good reputation or a bad reputation. The same applies to businesses in the industry.

A Registered Business Name is one of the 3 general company structures which an individual can register in Nigeria, the other 2 are incorporated companies and incorporated trustees.

Once, you obtain your TIN, you can open a corporate account with any bank of your choice with a registered business. You can apply for loans and grants when your business is registered. When you register your business, customers trust you because they see you as legit and reliable.

14-digit
The TIN is a 14-digit number assigned to all taxpayers by the FIRS. In 2011, the Central Bank of Nigeria issued a directive mandating businesses to provide their TIN to open or continue to operate a corporate bank account.

This is because you have not filed your Annual Return. It is compulsory for every registered business to file their annual returns with the Corporate Affairs Commission not later than 30th of June every year.

RC stands for registered Company number. the RC number can be used to check whether a company is registered in Nigeria.

With your certificate, you can easily apply for loans and support funds both within and outside the country. It also grants you access to funding from the government and private sector. Having access to these funding opportunities increases your chances of achieving your business goals and taking it to the next level.

It helps the company or entity give notice to the Commission of the entity’s continued existence, further to which the entity’s name is retained on the register kept by the commission. Failure to file annual returns is a signal that the company may not be in operation.

All NGOs are expected to register for tax purposes and obtain Taxpayer Identification Number (TIN) with relevant documents such as the registration documents provided by the Corporate Affairs Commission and other relevant documents (if any).