When starting a new venture or organization in Nigeria, it’s crucial to understand the different legal structures available for registration.

While many entrepreneurs opt for business name registration with the Corporate Affairs Commission (CAC), others may consider registering as an Incorporated Trustee, especially if their focus is on non-profit activities, religious organizations, or charitable endeavors.

This guide will explain whether you can register your business name as an Incorporated Trustee in Nigeria and the key considerations involved.

Understanding Business Name Registration

Business name registration is ideal for sole proprietorships or small partnerships.

It allows individuals to operate a business under a specific name without creating a separate legal entity.

This type of registration is straightforward and suitable for small businesses that do not plan to engage in extensive legal or financial transactions.

Learn more about How to Register a Company/Business Name/Incorporated Trustee.

What is an Incorporated Trustee?

An Incorporated Trustee, on the other hand, is a legal structure primarily used by non-profit organizations, NGOs, religious bodies, and charitable entities.

Unlike a business name, an Incorporated Trustee is a distinct legal entity that can own property, enter into contracts, and sue or be sued independently of its members.

This structure provides a higher level of credibility and legal protection, which is essential for organizations focusing on public benefit activities.

Can You Register a Business Name as an Incorporated Trustee?

The short answer is NO. A business name cannot be registered as an Incorporated Trustee because these are two distinct legal structures designed for different purposes.

However, you can transition from a business name to an Incorporated Trustee if your organization’s objectives align more closely with the latter.

Steps to Register as an Incorporated Trustee

If you decide that registering as an Incorporated Trustee is the best fit for your organization, here are the steps involved:

1. Conduct a Name Availability Search

The first step is to ensure that the name you wish to use is available and not already in use by another entity. This search can be conducted on the CAC’s online portal.

2. Draft the Constitution of the Organization

You will need to prepare a constitution that outlines the objectives, membership, governance structure, and rules of the organization. This document must be comprehensive and comply with the regulations set by the CAC.

3. Obtain Consent from the CAC

Before proceeding with the registration, you must obtain the CAC’s consent. This involves submitting an application that includes the proposed name, objectives, and constitution of the organization. The CAC will review these documents to ensure they meet the legal requirements.

4. Publication of Notices

Once you have received consent from the CAC, you are required to publish notices in three national newspapers. This step is crucial for public awareness and to invite objections, if any, to the registration of the Incorporated Trustee.

5. Submit Required Documents

After the publication period, you will need to submit the following documents to the CAC:

• Duly completed application form
• Copy of the organization’s constitution
• Minutes of the meeting where the trustees were appointed, signed by the chairman and secretary
• Trustees’ declaration forms, signed by a Commissioner for Oaths
• Evidence of newspaper publications
• Photocopies of valid identification for each trustee
• Passport-sized photographs of each trustee
• The application fee receipt

6. Issuance of Certificate of Incorporation

Upon successful review and approval of the submitted documents, the CAC will issue a Certificate of Incorporation. This certificate confirms that your organization is now legally recognized as an Incorporated Trustee.

If you need an expert to assist you, Contact Skypro Professional Services today via info@skyproservices.com.ng and let us handle the registration process for you, so you can focus on what you do best—building and growing your business.

What are the Benefits of Registering as an Incorporated Trustee

• Legal Recognition: Provides a separate legal entity status, allowing the organization to own property and enter contracts independently.
• Credibility: Enhances the organization’s credibility and trustworthiness, which is crucial for fundraising and public engagement.
• Perpetual Succession: Ensures the organization’s continuity beyond the involvement of the original founders.
• Tax Exemptions: Qualifies for certain tax exemptions and incentives available to non-profit entities.

Conclusion

While you cannot register a business name as an Incorporated Trustee in Nigeria, you can choose the appropriate legal structure based on your organization’s objectives.

Business name registration is suitable for small, for-profit ventures, while Incorporated Trustee registration is ideal for non-profit organizations, NGOs, and religious or charitable entities.

By understanding the requirements and benefits of each structure, you can make an informed decision that best aligns with your goals and ensures the legal and operational success of your organization.

If you find the process daunting or need professional assistance, consider contacting Skypro Professional Services, an accredited agent of the CAC.

With our expertise, we can handle the registration process for you, allowing you to focus on growing your business.

Contact Skypro Professional Services today via info@skyproservices.com.ng and take the first step towards securing your business’s future.