How to Register a Business in Nigeria: The Complete CAC Guide
Plenty of Nigerian businesses run for years without registration: the caterer who takes orders on WhatsApp, the graphic designer with a growing client list, the fashion brand that sells through Instagram. Many of them reach the same wall. A corporate client asks for a CAC certificate before paying an invoice. A bank will not open a business account without one. A grant, loan or government contract requires it.
Registering your business with the Corporate Affairs Commission (CAC) is how you get past that wall. It is now done online, it costs less than many people assume, and for a simple business name it can be finished in days. This guide explains which structure to choose, what you need, the official fees, the step-by-step process, and what you must do after registration to stay in good standing.
The short version
- Choose a structure: a business name for a sole trader or partnership, or a private limited company (Ltd) if you want a separate legal entity.
- Prepare your details: NIN, ID, passport photograph, business address and a description of your business.
- Create an account on the CAC registration portal through cac.gov.ng.
- Search and reserve your name.
- Complete the registration form, upload documents and pay online.
- Download your certificate and status report once approved.
- Set up the rest: tax ID, business bank account, permits and annual returns.
On CAC's fee schedule, registering a business name costs ₦10,000, and incorporating a private company with share capital of ₦1 million or less costs ₦10,000 plus stamp duty.
Step 1: Choose the right business structure
This is the most important decision in the process, because it determines your liability, your costs and your obligations.
Business name (sole proprietorship or partnership)
A business name registers the name you trade under. It is the simplest and cheapest option, and it suits freelancers, small traders and service providers starting out.
- Liability: You and the business are legally the same. If the business owes money, your personal assets can be pursued.
- Ownership: One owner (sole proprietor) or two or more (partnership).
- Best for: Low-risk businesses, side businesses and people testing an idea.
Private limited company (Ltd)
A private company limited by shares is a separate legal person. The company owns its assets, signs its contracts and carries its own debts.
- Liability: Shareholders are generally liable only up to the value of their shares.
- Ownership: Under the Companies and Allied Matters Act (CAMA) 2020, a private company can have just one director and one shareholder, who can be the same person.
- Minimum share capital: ₦100,000 for a private company.
- Best for: Businesses that plan to grow, take on investors, bid for large contracts, borrow or hire staff.
Incorporated trustees (NGOs and associations)
Churches, mosques, charities, foundations, clubs and community associations register as incorporated trustees. This structure has its own requirements, including a newspaper publication of the proposed name, and is not covered in detail here.
Which should you choose?
| Question | Business Name | Private Limited Company |
|---|---|---|
| Is the business legally separate from you? | No | Yes |
| Are your personal assets protected from business debts? | No | Generally yes |
| CAC registration fee (on the official schedule) | ₦10,000 | ₦10,000 for share capital up to ₦1 million, plus stamp duty |
| Can it issue shares to investors? | No | Yes |
| Ongoing filings | Annual returns | Annual returns, statutory records, and more |
| Typical fit | Freelancers, small traders, side businesses | Growing businesses, contractors, startups |
If you are unsure, a common path is to start with a business name, then incorporate a company once the business grows or starts taking on bigger risks.
Step 2: Prepare your documents and details
Have these ready before you open the portal:
- Your NIN. CAC now uses the National Identification Number to verify proprietors and directors. If you do not have one yet, start with our guide to getting your NIN in Nigeria.
- A valid means of identification for each proprietor, partner, director or shareholder: NIN slip, international passport, driver's licence or voter's card.
- A recent passport photograph in digital format.
- A signature, uploaded digitally.
- A full business address in Nigeria. A P.O. box is not accepted. A residential address is fine for many small businesses.
- Personal details for each person: full legal name, date of birth, phone number, email and residential address.
- A clear description of the business activity.
- Two or three proposed names, in order of preference.
For a company, you also need:
- Details of each director and shareholder, and how the shares are split. Shareholdings must add up to 100%.
- Your issued share capital (at least ₦100,000).
- The company's objects, and the memorandum and articles of association. CAC provides a standard template, which most small companies can use.
- Details of any person with significant control (PSC): anyone who directly or indirectly holds at least 5% of the shares or voting rights, or otherwise controls the company.
Make sure every name you enter matches the person's NIN and ID exactly. A spelling difference is one of the most common reasons for queries and delays.
Step 3: Create an account on the CAC portal
Go to the official CAC website, cac.gov.ng, and follow the link to the online registration portal. Register with a valid email address and verify it.
In 2025, CAC began piloting an AI-assisted registration portal that verifies applicants with their NIN and aims to issue certificates much faster. Whichever version of the portal you are directed to, always start from cac.gov.ng so you know you are on the official site.
Step 4: Search and reserve your business name
- Enter your proposed name in the name availability search.
- If it is available, reserve it and pay the reservation fee. A reserved name is held for a limited period, usually 60 days, while you complete registration.
- If it is rejected, try your next option.
Tips for an approvable name:
- Avoid names that are identical or too similar to an existing business or a well-known brand.
- Avoid restricted words such as "Federal," "National," "Bank" or "Insurance" unless you have the required approval from the relevant regulator.
- A company name must end with "Limited" or "Ltd."
- Choose a name that describes your business clearly and that you are happy to see on invoices, signboards and bank statements.
Step 5: Complete the registration form
Once your name is reserved, continue to the registration form for your structure.
For a business name, enter the proprietor's or partners' details, the business address, the nature of the business and the commencement date, then upload your ID, photograph and signature.
For a company, enter the registered office address, the details of each director, shareholder and PSC, the share capital and how it is allocated, and the company's objects. Then adopt the memorandum and articles of association and upload the required documents.
Review everything carefully before submitting. Once your certificate is issued, correcting an error means a separate post-registration filing with its own fee.
Step 6: Pay the fees online
Pay through the portal's official payment channel. These are the main fees on CAC's published fee schedule:
| Service | CAC Fee |
|---|---|
| Business name registration and certified copy of documents | ₦10,000 |
| Private company registration, issued share capital up to ₦1 million | ₦10,000 |
| Private company, share capital above ₦1 million | Additional fee per extra ₦1 million, on CAC's scale |
| Incorporated trustees registration | ₦35,000 |
| Name reservation | Small fee, shown on the portal |
A company also pays stamp duty on its share capital, at 0.75%. That is about ₦7,500 on ₦1 million of share capital, or ₦750 on the ₦100,000 minimum. Payment gateway charges also apply.
CAC reviews its fees from time to time, so confirm the amount shown on the portal before paying. Never pay registration fees into a personal account.
Free registration for small businesses
In 2025, the Federal Government, CAC and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) launched a programme to cover registration fees for 250,000 micro, small and medium businesses. As of mid-2026 the programme was still taking applications through portal.smedan.gov.ng, on a first-come, first-served basis. If you are registering a small business name, check whether slots remain before you pay yourself.
Step 7: Receive your certificate
When CAC approves your application, you receive your documents electronically by email and in your portal account:
- Certificate of registration (business name) or certificate of incorporation (company)
- A status report or certified extract showing the registered details
- For a company, the registered memorandum and articles of association
Download and store these safely. You will need them for bank accounts, contracts, tenders and tax registration.
How long does it take? A correct, complete business name application is usually approved within a few working days, and companies take a little longer. Applications with mismatched names, unclear business descriptions or poor-quality uploads are queried and take longer.
Worked examples
Amaka's catering business name
Amaka runs a catering business in Port Harcourt. A hotel wants to make her a regular supplier but needs a CAC certificate before it can pay her invoices.
She registers "Amaka's Kitchen Delights" as a business name. She checks that her NIN details are correct, reserves the name on the portal, enters her home address as the business address and describes the activity as "catering and event food services." She pays the ₦10,000 registration fee plus the small reservation and gateway charges, and receives her certificate by email within the week. She then opens a business account in the registered name and sends the hotel her certificate.
Total CAC cost: about ₦10,000 to ₦11,000, or nothing if she secures a free slot through SMEDAN.
Seun and Bolu's software company
Seun and Bolu are building a software product in Lagos and want to raise money from investors later. They need a separate legal entity, so they incorporate "Brightpath Labs Limited."
They set the issued share capital at ₦1,000,000, split 50:50. Both are directors and both are listed as persons with significant control. They use CAC's standard memorandum and articles, pay the ₦10,000 registration fee and about ₦7,500 in stamp duty, and receive their certificate of incorporation within days.
Total cost: about ₦18,000 in official charges, plus gateway fees. A lawyer or accredited agent would add their professional fee if they used one.
Should you use an agent or do it yourself?
The CAC portal is designed for self-service, and many business owners register a business name on their own without difficulty. You might use a lawyer or CAC-accredited agent if:
- You are incorporating a company with several shareholders, investors or foreign owners.
- You need custom articles of association.
- Your business needs licences from a sector regulator.
If you use an agent, ask for the official CAC fees and their professional fee separately, in writing, and confirm they are accredited. Be wary of anyone who asks for payment into a personal account, promises "same-day certificates" for a premium, or cannot show you the application in your own portal account.
After registration: what you must do next
Registration is the start of your obligations, not the end.
1. Get your tax ID
Every registered business needs a tax identification number. In many cases a tax ID is now generated as part of CAC registration and shown on your registration documents. If yours is not, register with the Nigeria Revenue Service (formerly FIRS) for a company, or with your state revenue service for a business name.
2. Understand the 2026 tax rules for small businesses
The Nigeria Tax Act took effect in 2026 and brought significant relief for small companies. A small company, defined as one with annual gross turnover of ₦100 million or less and total fixed assets of no more than ₦250 million, is exempt from Companies Income Tax, Capital Gains Tax and the new Development Levy.
Being exempt is not the same as not filing. You still need to keep proper records and meet your filing obligations, and you may still have VAT and employee-related responsibilities. Speak to an accountant about what applies to your business.
3. Open a business bank account
Open a corporate or business account in the exact registered name. Keeping business and personal money separate makes your accounting, tax filing and any future loan or investment much easier.
4. Get local permits and sector licences
Depending on your business and location, you may need a local government permit or trade licence, and some sectors need their own approvals: NAFDAC for food, drinks and cosmetics, for example, or specific licences for financial services, education and healthcare.
5. File annual returns every year
Every registered business must file annual returns with CAC, even if it made no money. On CAC's schedule, annual returns cost ₦3,000 for a business name and ₦5,000 for most companies. Filing late attracts penalties, which on CAC's schedule include a one-off charge plus a daily default penalty, and a business that stops filing can be marked inactive or struck off.
Set a yearly reminder. Late annual returns are one of the most common and most avoidable problems for small businesses in Nigeria.
6. Keep your records up to date
Tell CAC about changes such as a new address, a new director or partner, or a change in ownership or PSC. For companies, changes to persons with significant control must be reported promptly. Keep your registers of members and directors, and minutes of decisions, in order.
7. If you hire staff
Once you employ people, you take on new obligations, including deducting and remitting employees' income tax and, under the Pension Reform Act, making pension contributions for employers with three or more employees. Issue written employment contracts from the start.
Common mistakes to avoid
- Choosing a business name when you need liability protection. If your business carries real financial risk, a limited company protects your personal assets.
- Names that do not match your NIN. This causes queries and delays.
- Vague business descriptions. Describe what you actually do.
- Paying unofficial agents. Pay only through the CAC portal, and keep your login details to yourself.
- Forgetting annual returns. Penalties build up daily.
- Mixing personal and business money. Open a business account as soon as you register.
Registration and your career
Registering a business is not only for full-time entrepreneurs. Freelancers, consultants and professionals with a side business often register so they can invoice companies, sign contracts and build credibility. A registered business also gives you something concrete to list on your CV: the business name, your role and what you achieved.
Running a registered business means understanding money too: invoices, cash flow, profit and tax. Our guide to the money knowledge every professional should have covers the essentials.
Frequently asked questions
How much does it cost to register a business name in Nigeria in 2026? CAC's published fee schedule lists ₦10,000 for business name registration and a certified copy of the documents, plus a small name reservation fee and payment gateway charges. Eligible small businesses may get free registration through the SMEDAN programme while slots remain.
How much does it cost to register a limited company in Nigeria? On CAC's schedule, incorporating a private company with issued share capital of ₦1 million or less costs ₦10,000, plus 0.75% stamp duty on the share capital, which is about ₦7,500 on ₦1 million.
Can one person register a limited company in Nigeria? Yes. Under CAMA 2020, a private company can have one director and one shareholder, and they can be the same person.
What is the minimum share capital for a private company in Nigeria? ₦100,000.
How long does CAC registration take? A complete and correct business name application is usually approved within a few working days. Companies can take slightly longer, and applications with errors take longer because CAC sends queries.
Do I need a lawyer to register a business in Nigeria? No. You can register a business name or a simple company yourself on the CAC portal. A lawyer or accredited agent is useful for complex ownership structures or custom articles.
Do small businesses pay tax in Nigeria in 2026? Small companies with annual turnover of ₦100 million or less and fixed assets of no more than ₦250 million are exempt from Companies Income Tax, Capital Gains Tax and the Development Levy. They must still keep records and meet their filing obligations.
What happens if I do not file annual returns? CAC charges late filing penalties, including a daily default penalty, and a business that stops filing can be marked inactive or struck off the register.
Related reading
- How to Get Your National Identification Number (NIN) in Nigeria
- The Money Knowledge Every Professional Should Have
- How to Get an International Passport in Nigeria: The Complete 2026 Guide
- How to Get a Driver's Licence in Nigeria: The Complete 2026 Guide
- US Job Application Red Flags: Spotting Fake Job Postings and Scams
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