FAQ About Smartbiz Enterprise
What is the difference between a Business name and a Company name?
BUSINESS NAME VS COMPANY NAME
A Business name is the name you register to do business with. It’s governed under Part B of the Companies and Allied Matters Act (CAMA) 2004 and the registration is administered by the Corporate Affairs Commission (CAC) here in Nigeria.
Business names do not end with Limited or Company. Business names are usually Enterprises or Ventures
Business names registration number starts with BN not RC
A Business name can be run as a sole proprietorship or partnership. They do not have directors or shareholders. They are most suitable for a one-man business.
The Owner of a business name has no separate liabilities from the Business name in order words, in a legal suit, the assets of the business and that of the owner can be gotten.
They are less expensive to register WHILE
Limited Liabilities are governed under Part A of the Companies and Allied Matters Act (CAMA)2004 and the registration is administered by the Corporate Affairs Commission(CAC) here in Nigeria.
Limited Liability can either be Private or Public.
Limited Liability Companies end with Limited or Ltd.
Their registration number starts with RC
Limited liabilities have directors and shareholders.
They do not by structure run as a one man business.
Limited liabilities business has its own legal identity separate from its directors.
The company is a person and enjoys the benefits ordinarily put on a natural person such as right to own property in its own name, it can borrow, can sue and be sued etc.
Limited Liability has perpetual succession.
This means that the death of a member does not end its existence.
Members of a Limited Liability are not personally liable for its debts; the liability of members is limited by shares.
The company is liable for its own debts.
Limited liabilities are governed strictly by CAMA and need close monitoring.
Limited liabilities are required to notify CAC on any change that happens in the Company
Limited liabilities are more expensive to register compared to a Business Name.
