Understanding Name Reservation in Business Registration

When registering a business, company, NGO, or incorporated trustee with the Corporate Affairs Commission (CAC) in Nigeria, one of the most important steps is Name Reservation. This process ensures that your chosen business name is set aside and secured for your use while you complete the registration.

What is Name Reservation?

Name reservation means securing an approved business name for a specific period of time with CAC. Once a name is reserved, no one else can register or use that name within the reservation period.

In simple terms, it is like “booking” your business name so that you don’t lose it while preparing your documents for full registration.

Why is Name Reservation Important?

1. Protects Your Chosen Name – Once reserved, your name is locked and cannot be taken by another applicant.
2. Gives You Time – It allows you to gather all required documents and complete registration without rushing.
3. Saves Stress – Without reservation, another person could register the name before you finish your process.
4. Meets Legal Requirement – CAC requires name reservation before you can proceed with actual business registration.

Duration of Name Reservation

• A reserved name is valid for 60 days.
• If you are unable to complete your registration within this time, you can renew the reservation for another 60 days.

Steps to Reserve a Business Name in Nigeria

1. Create an Account on the CAC Portal (pre.cac.gov.ng).
2. Conduct a Name Availability Search – Propose one or two name options.
3. Apply for Reservation – Once CAC approves the name, it will be reserved for you.
4. Make Payment – Pay the official CAC reservation fee.
5. Receive Approval – You’ll get a notification that your name has been reserved.

Tips for Successful Name Reservation

• Always submit two alternative names in case your first choice is rejected.
• Ensure your name is unique, simple, and not too similar to existing businesses.
• Avoid restricted words like National, Government, Bank, Chartered, University, unless you have special approval.
• Don’t wait too long after reservation; proceed to registration while the name is still valid.

Example

If you want to start a catering business:

• Instead of using “Delicious Catering” (which might already exist), you can try “Delicious Bites Nigeria” or “House of Delicious Meals”. Once CAC approves and reserves it, you have 60 days to complete the registration.

Final Thoughts

Name reservation is an essential step in business registration. It gives you the confidence that your business identity is safe while you complete your paperwork. Without reserving a name, you risk losing it to another applicant. Always begin your CAC registration with a proper name search and reservation.

Business Registration Ventures is available to help you handle your registration process seamlessly.