The Question That Starts Every Conversation
Every single day at JurisTech, someone asks us: "Should I register a Business Name or a Limited Company?"
It's the right question. The answer determines your tax obligations, your ability to raise funding, your personal liability, and how customers and partners perceive your business. Get it wrong, and you'll either overpay for a structure you don't need or underinvest in a structure that leaves you exposed.
Here's the honest breakdown.
Business Name (BN) — The Simple Option
A Business Name registration is what most sole proprietors and small partnerships need. It registers the name under which you're doing business with the CAC.
What it means:
The business is legally you. There is no separation between you and the businessYou are personally liable for all debts and obligations of the businessYou file your business income on your personal tax returnIt's fast — 24-48 hours when filed through an accredited agentIt's affordable — our standalone Business Name registration starts at ₦35,000Who it's for:
Sole traders and freelancersMarket traders and small shop ownersFreelancers (designers, developers, consultants)Anyone testing a business idea before committing to a full company structureBusinesses that don't plan to take on investors or significant debtLimitations:
You cannot have shareholders or issue sharesBanks and institutions may perceive it as less formal than an LTDYou cannot separate personal and business liabilitySome government contracts require an LTDLimited Liability Company (LTD) — The Growth Option
A Private Limited Company creates a separate legal entity. The company can own property, enter contracts, sue and be sued — all independently of you as the owner.
What it means:
The company is legally separate from you. Your personal assets are protected from business debts (in most circumstances)The company has its own tax obligations separate from your personal taxesYou can have up to 50 shareholdersIt can attract investment, issue shares, and grow beyond its foundersProcessing takes 4-15 working days, subject to CACOur registration packages start at ₦74,999 (standalone) or ₦135,000 (with website and legal documents)Who it's for:
Businesses that plan to grow beyond a one-person operationStartups that want to raise funding from investorsBusinesses that need to bid for government or corporate contractsPartnerships where liability protection is importantAny business where the founders want to separate personal and business riskLimitations:
More expensive to register and maintainRequires annual returns filing (which Business Names also need, but the consequences of non-compliance are more serious for companies)Requires at least two directors and two shareholdersMore regulatory requirements overallThe Quick Decision Guide
Here's how I advise clients:
Register a Business Name if:
You're the only owner (sole proprietor)Your annual revenue is under ₦10 millionYou don't plan to take on investorsYou want the fastest, cheapest optionYou're testing a business ideaRegister a Limited Company if:
You have business partners (more than one owner)You plan to raise funding or take on investorsYou need to bid for corporate or government contractsYour business involves significant risk or liabilityYou want to build something that can exist beyond youWhat About Converting Later?
Yes, you can start with a Business Name and upgrade to an LTD later. Many entrepreneurs do exactly this — they register a BN to get started quickly, then incorporate as an LTD once the business is established.
At JurisTech, we handle both registrations and the conversion process. The cost of converting later is essentially the cost of registering a new LTD, so factor that into your decision.
Our Recommendation
If you're genuinely unsure, start with a Business Name. It's faster, cheaper, and gets you legally registered so you can open a bank account and start operating. You can always upgrade to an LTD when the time is right.
But if you already know you're building something big — with partners, investors, or significant growth plans — go straight to an LTD. The extra cost and time upfront will save you headaches later.
How We Can Help
At JurisTech, we don't just register your business — we advise you on the right structure for your goals. Our pricing is transparent, and all government fees are included.
Business Name only: ₦35,000Starter Package (BN + Website): ₦80,000LTD registration: ₦74,999Entrepreneur Package (LTD + Website + Legal Docs): ₦135,000