Registering a business (name) in Nigeria has become far simpler over the years, thanks to reforms aimed at improving the ease of doing business.
Today, entrepreneurs can complete the process without stress and meet regulatory requirements without unnecessary delays.
The government agency responsible for business registration in Nigeria is the Corporate Affairs Commission (CAC).
You can register a business on your own or engage a professional such as a lawyer, chartered accountant, or business registration consultant.
This article focuses on the do-it-yourself (DIY) process for registering a business in Nigeria.
The first step is to visit the CAC website where you can create an account, search for an available business name, and reserve it.
You then complete the required registration forms, upload valid identification documents, pay the applicable fees, and submit your application for approval. Once approved, your certificate is issued electronically.
The entire process is completed online using your personal details and a valid means of identification.
Step-by-Step Guide to Registering Your Business in Nigeria
1. Preparation
Choose a Business Structure: Decide whether to register as a Sole Proprietorship (Business Name), Partnership, or Company (Limited Liability Company, Public Limited Company, etc.).
Prepare Documents: Get digital copies of a valid ID (NIN, driver’s license, or International passport) and a passport photograph for each proprietor or director.
2. CAC Portal Registration
Create an Account: Visit the CAC portal and sign up using your email address.
Name Availability Search: Submit two proposed business names to check for availability.
Name Reservation: Pay the required fee (₦500 for business names) to reserve an approved name. The reservation is valid for 60 days.
3. Application and Submission
Complete Forms: Log in and fill out the appropriate registration form, such as BN 1 for business names, or the relevant forms for company registration.
Upload Documents: Upload scanned copies of IDs and passport photographs.
Pay Fees: Pay the registration fee online. For business names, the standard fee is ₦10,000. At certain times, business name registration may be offered free under government MSME initiatives.
Submit Application: Review and submit your application for processing.
4. Approval and Issuance
Track Application: Monitor the status of your application through the CAC portal.
Download Certificate: Once approved, download your Business Name Certificate or Certificate of Incorporation directly from the portal.
Official Fees for Limited Liability Company Registration
Registering a limited liability company involves CAC statutory fees, which vary based on share capital.
Typical Cost Breakdown
Name Reservation: ₦500
Private Limited Company (Ltd) Registration: Base registration fee of ₦10,000 for share capital up to ₦1 million.
Additional fees apply for higher share capital such as ₦5,000 for each additional ₦1million up to ₦500 million.
Factors that affect cost
Share Capital: Higher authorised share capital attracts higher registration fees.
For more information, visit the CAC website.
Post-Registration Steps
- Open a corporate bank account.
- Apply for a Tax Identification Number (TIN).
- Register for Value Added Tax (VAT), if applicable.
