Knowing how to register your business in Nigeria with the CAC is one of the most practical steps any entrepreneur can take, yet it remains one of the most consistently deferred. Thousands of Nigerian businesses operate every month without legal registration, accepting the associated risks as a normal cost of doing business informally. They are wrong to do so, and the consequences are becoming increasingly difficult to avoid.
Operating without CAC registration means operating without a legal identity. Your business cannot open a corporate bank account. It cannot enter into formal contracts that are enforceable in a Nigerian court. It cannot apply for government tenders, institutional financing, or regulated industry licences. It cannot protect its name, meaning a competitor can register the same name tomorrow, and you have no legal recourse.
Beyond these practical limitations, there is a credibility dimension that directly affects commercial performance. Nigerian consumers and B2B clients are increasingly discerning. An unregistered business signals impermanence, informality, and risk. A registered business (with a certificate number, a verifiable CAC profile, and a business bank account) signals exactly the opposite. In a market where trust is earned slowly and lost quickly, registration is a commercial asset, not merely a regulatory compliance.
This guide covers every aspect of how to register your business in Nigeria with the CAC: the types of registration available, the requirements for each, the exact process from name search to certificate download, realistic cost ranges, and the critical steps to take after registration is complete. Whether you are registering a business name as a sole trader or incorporating a limited liability company, this is the complete reference you need.
What Is the Corporate Affairs Commission (CAC)?
The Corporate Affairs Commission is the Nigerian federal government agency responsible for the incorporation of companies, registration of business names, and registration of trustees, established under the Companies and Allied Matters Act (CAMA). It is the sole authority through which businesses are formally recognised as legal entities in Nigeria.
Every registered business in Nigeria, whether a one-person enterprise trading under a business name, a partnership, or a multinational corporation incorporated as a public limited company, exists in law because the CAC has recorded and validated its registration. Without that record, the business has no legal standing in the Nigerian commercial system.
The CAC’s Role in Nigeria’s Business Ecosystem
The CAC maintains the official register of all Nigerian businesses, companies, and trustees. It issues certificates of incorporation and business name registration, verifies director and shareholder information, processes annual returns, records changes in ownership or structure, and handles business dissolution. Since 2020, the CAC has progressively digitised its services through the CAC Company Registration Portal (CRP), making most registration and compliance processes accessible online.
Why Formal Registration Is Essential
Registration is mandatory for any business that intends to operate formally in Nigeria. It is the entry point to the formal economy: the prerequisite for a business bank account, a TIN from the Federal Inland Revenue Service, VAT registration, PAYE obligations, government contracts, and regulated industry licences. It is also the foundation of brand protection; a registered business name or company name cannot be registered by another party while it remains active on the CAC register.
Types of Business Registration Available in Nigeria
The CAC offers three primary registration pathways for small businesses. The right choice depends on the business’s structure, ambitions, and risk profile. The table below summarises the key differences before which are explained in detail.
| Feature | Business Name | LLC | Partnership |
|---|---|---|---|
| Legal entity? | No, same as owner | Yes, separate | No, same as partners |
| Personal liability? | Unlimited | Limited to shares | Unlimited |
| Can issue shares? | No | Yes | No |
| Best for | Sole traders | Growing businesses | Joint ventures |
| CAC fee (approx) | ₦10k–15k | From ₦10k | ₦10k–15k |
| Renewal required? | Every year | Annual returns | Every year |
Business Name Registration (Sole Proprietorship)
A business name registration is the simplest and most affordable registration option. It is appropriate for individual entrepreneurs operating under a trading name that is different from their personal name, for example, a consultant trading as ‘SwiftConsult NG’ rather than under their own name.
Under a business name registration, the owner and the business are the same legal entity. This means there is no separation between personal and business liability; if the business incurs a debt, the owner is personally responsible for settling it. This is the primary limitation of business name registration and the primary reason growing businesses eventually convert to an LLC.
Business name registration must be renewed annually with the CAC. Failure to file annual returns results in penalties and, eventually, deregistration.
Best for: Sole traders, freelancers, market traders, early-stage founders testing a business concept with minimal financial risk.
Limited Liability Company (Private Limited Ltd)
A Private Limited Liability Company is a separate legal entity from its owners. This is the single most important distinction: the company can own assets, enter contracts, incur debts, and be sued independently of its shareholders or directors. In the event of business failure or litigation, shareholders’ personal assets are protected, with liability limited to the value of their unpaid share capital.
An LLC is incorporated under the Companies and Allied Matters Act (CAMA 2020) and must have at least one director and one shareholder (who may be the same person under current CAMA provisions for single-member companies), a registered Nigerian business address, a Memorandum and Articles of Association, and a defined share capital structure.
LLCs are required to file annual returns with the CAC, hold statutory meetings, and maintain proper corporate governance records. The administrative requirements are more significant than for a business name, but the protections and commercial advantages are proportionally greater.
Best for: Growing businesses, co-founders, businesses seeking investment, any operation with significant financial risk or contractual exposure.
Partnership
A partnership is registered as a business name with multiple owners, typically two or more individuals sharing management and profit in proportions defined in a partnership agreement. In a general partnership, all partners share unlimited joint and several liability. This means each partner is fully liable for the debts of the partnership, including debts incurred by the actions of other partners.
A formal, legally drafted partnership agreement is strongly recommended before registration, as this governs profit sharing, decision-making authority, and the process for admitting or removing partners. The absence of such an agreement makes commercial disputes between partners extremely difficult to resolve.
Best for: Professional practices (solicitors, accountants, medical practitioners), family businesses, and joint ventures between two parties with a clearly defined and equal business model.
Requirements for CAC Registration in Nigeria
Documents Required for Business Name Registration
- Proposed business name: One primary choice and at least one alternative, in the event the primary name is unavailable.
- Proprietor’s full legal name: As it appears on a valid government-issued ID.
- Valid means of identification: National ID card (NIN slip), international passport, driver’s licence, or voter’s card must be current and clearly legible.
- Residential address: Full home address of the proprietor, including local government area.
- Business address: The registered address of the business in Nigeria.
- Nature of business: A brief description of the principal business activities.
- Passport photograph: A recent, clear passport-sized photograph of the proprietor.
- Email address and phone number: For portal account creation and correspondence.
Documents Required for Limited Liability Company Registration
- Company name: Proposed name and at least one alternative.
- Registered office address: A physical Nigerian address, a P.O. box is not acceptable as the sole registered address.
- Directors’ details: Full legal names, residential addresses, occupations, dates of birth, and valid means of identification for each director.
- Shareholders’ details: Full legal names, addresses, and the number of shares allotted to each shareholder.
- Share capital structure: Total authorised share capital and the par value of each share. Minimum share capital for most private companies is ₦100,000, though specific industries have higher minimums.
- Memorandum and Articles of Association (MEMART): The constitutional document of the company defining its purpose, governance rules, and shareholder rights. A standard template is available through the CAC portal.
- Statement of share capital: Confirming the allocation of shares between shareholders.
- Declaration of compliance: Signed by a legal practitioner confirming that all incorporation requirements have been met.
All documents uploaded to the CAC portal must be clear, high-resolution scans or photographs. Blurred, damaged, or partially visible documents are a leading cause of registration rejection and delay.
Step-by-Step CAC Registration Process in Nigeria
The following process applies to online registration through the CAC’s Company Registration Portal (CRP) at pre.cac.gov.ng. All steps are applicable to both business name and LLC registration, with noted differences where they exist.
STEP 1: Name Search and Reservation
Before any registration can proceed, you must confirm that your proposed business name is available on the CAC register. Visit the CAC portal and use the name availability search tool. The search is instant. If the name is available, proceed to submit a name reservation application.
A name reservation holds your chosen name for a defined period (typically 60 days), during which no other party can register the same name. You must complete your registration within this period, or the reservation lapses and the name becomes available again.
Name availability criteria: The CAC will reject names that are identical or confusingly similar to an existing registered name, names that are too generic to distinguish one business from another (for example, ‘Nigeria Business Services’), names that suggest government affiliation without proper authorisation, and names containing restricted words such as ‘Federal’, ‘National’, ‘Bank’, ‘Insurance’, or ‘Group’ without CAC approval.
Practical tip: Prepare three to five name options before beginning your search. Having alternatives ready prevents delay if your first choice is unavailable.
STEP 2: Create a Portal Account and Complete Registration Form
If you do not already have a CAC portal account, create one at pre.cac.gov.ng using a valid email address. Once logged in, select the appropriate registration type, Business Name or Company, and begin completing the registration form.
The form collects all the information listed in the requirements section above. Complete every field accurately. Errors in this section (particularly in the spelling of names, addresses, and identification numbers) are a common cause of registration complications that are time-consuming and sometimes costly to correct after the fact.
For LLC registration, the MEMART can be generated using the CAC’s standard template within the portal, with customisation options for the company’s specific objects and governance provisions. If your business requires a bespoke MEMART for regulated industries or companies with complex shareholder arrangements, engage a qualified solicitor to draft this document.
STEP 3: Upload Required Documents
At the document upload stage, attach each required document in the format specified by the portal. For most documents, the CAC accepts PDF and JPEG formats. Ensure that:
- Identification documents are current and not expired.
- All documents are clearly legible; not photographed at an angle or in poor lighting.
- Signatures on relevant forms are original, not electronic scribbles.
- Passport photographs meet the standard passport size requirements and show a plain background.
For LLC registration, the MEMART, statement of share capital, and declaration of compliance must all be uploaded at this stage. These documents must be consistent with each other; discrepancies between stated share capital in different documents will cause the application to be queried.
STEP 4: Pay the Registration Fee
Once the form is completed and documents uploaded, the portal generates a payment invoice. Payment can be made via debit card, Remita, bank transfer, or through any licensed CAC-accredited agent. Retain the payment confirmation as evidence; you will need this if any query arises about the status of your application.
CAC fees are subject to change. Current fee ranges for common registration types are indicated in the cost table in Section 6 below, but you should always confirm the current fees directly on the portal at the time of application.
STEP 5: Await Review and Approval
Once payment is confirmed, the CAC processes the application. For business name registrations submitted with complete, accurate documentation, processing typically takes between five and fifteen working days through the online portal. LLC incorporations generally take two to six weeks, depending on the completeness of the MEMART, the share structure, and current processing volumes.
Applications with incomplete documentation, blurred uploads, or inconsistencies between form data and attached documents are queried, requiring the applicant to make corrections and resubmit. This can extend the timeline by an additional one to three weeks. Working with a CAC-accredited agent significantly reduces the likelihood of queries and often shortens the overall timeline.
You can track the status of your application through the portal at any point using your application reference number.
STEP 6: Download Your Certificate
Upon approval, the CAC issues a digital certificate of registration or incorporation, which is available for download through the portal. For a business name, this is a Certificate of Registration of Business Name. For an LLC, this is a Certificate of Incorporation accompanied by the certified MEMART and the Form CAC 1.1 (Return of Allotment and Particulars of Directors).
Print and store both a physical copy and a digital backup of all certificates and accompanying documents. These will be required when opening a business bank account, applying for TIN registration, tendering for contracts, and responding to due diligence requests from clients or financial institutions.
Important: The CAC digital certificate carries a QR code that can be scanned to verify the registration on the CAC portal. This is the authoritative proof of registration for third-party verification purposes.
Cost of Registering a Business with the CAC
The cost of registering your business in Nigeria with the CAC varies depending on the registration type and whether you use the portal directly or engage an accredited agent. The table below provides current indicative ranges. Fees are set by the CAC and are subject to change. Always verify the current schedule on the CAC portal before submitting payment.
| Registration Type | CAC Fee | Total Cost (+ Agent) |
|---|---|---|
| Business Name (Sole Proprietorship) | ₦10,000 – ₦15,000 | ₦15,000 – ₦30,000 |
| Partnership (Business Name) | ₦10,000 – ₦15,000 | ₦20,000 – ₦40,000 |
| Private Ltd (up to ₦1m capital) | ₦10,000 – ₦20,000 | ₦50,000 – ₦100,000 |
| Private Ltd (above ₦1m capital) | Scaled by capital | ₦100,000 – ₦200,000+ |
| Public Limited Company | Scaled by capital | ₦200,000+ |
Agent fees vary significantly. A reputable CAC-accredited agent typically charges between ₦15,000 and ₦50,000 for a business name registration and between ₦50,000 and ₦150,000 for LLC incorporation, depending on the complexity of the MEMART and share structure. Solicitors engaged to draft bespoke MEMART documents will charge separately, typically between ₦50,000 and ₦200,000, depending on complexity.
Be cautious of agents advertising unusually low fees. Underpriced services are often associated with shortcuts in documentation or submission errors that create compliance problems later.
What to Do After CAC Registration
CAC registration is the beginning of legal compliance, not the entirety of it. The following steps should be completed within 60 to 90 days of receiving your certificate.
| ☐ | Open a dedicated business bank account in the registered business name |
| ☐ | Register for a Tax Identification Number (TIN) via the FIRS portal at tin.firs.gov.ng |
| ☐ | Assess VAT registration obligations; mandatory if annual turnover is ₦25m or above; consider voluntary registration for B2B credibility |
| ☐ | Register for PAYE with the relevant State Internal Revenue Service if employing staff |
| ☐ | Engage a qualified accountant or bookkeeper to establish a financial recording system |
| ☐ | Display the business certificate at your registered business premises (legally required) |
| ☐ | File your first annual return before the deadline, for business names, within 18 months of registration; for LLCs, within 18 months of incorporation and annually thereafter |
| ☐ | Keep all CAC documents in both physical and digital form, backed up securely |
| ☐ | Update the CAC register promptly if there are any changes to address, directors, or ownership |
Opening a Business Bank Account
All major Nigerian banks will open a business current account on the production of your CAC certificate, TIN, utility bill for the registered business address, and identification documents for the account signatories. Some banks have additional requirements; confirm with your chosen bank before visiting. The account should be used exclusively for business transactions from the day it is opened.
TIN Registration
A Tax Identification Number is required for virtually every formal business activity in Nigeria, including banking, government contracts, international payment processing, and VAT invoicing. TIN registration through the FIRS portal is free and typically completed within two to five working days.
Understanding VAT Obligations
Value Added Tax applies to most taxable goods and services in Nigeria at the standard rate. Businesses with an annual turnover at or above ₦25 million are required to register for VAT and file monthly returns. Smaller businesses may register voluntarily, and there is a commercial advantage in doing so if your clients are VAT-registered entities who require VAT invoices from their suppliers.
Common Mistakes to Avoid During CAC Registration
Registering your business with the Corporate Affairs Commission (CAC) is an important step. But many small business owners in Nigeria make avoidable mistakes during the process. These mistakes can cause:
- Name rejection
- Application delays
- Extra costs
- Legal issues later
Let us go through the common ones so you can avoid them.
1. Choosing a Generic or Unavailable Business Name
Many first-time registrants arrive at the name search having already invested emotionally and financially in a name, only to discover it is taken or too generic for registration. Do your name search first, before committing to any branding, printing, or marketing. Have three alternatives ready. Avoid names that are purely descriptive (‘Fast Delivery Services Nigeria’) or that include restricted words without prior CAC approval.
2. Selecting the Wrong Business Category
The CAC registration form requires you to select the correct business category and describe the nature of business activities accurately. Selecting the wrong category (for example, registering a technology company under ‘General Commerce’) can create complications when the business later seeks regulatory licences or government approvals that require a specific business category to be on record.
3. Using an Incorrect or Unverifiable Address
The registered business address must be a physical, verifiable Nigerian address. Addresses that do not exist, P.O. box numbers used as the sole address, or addresses that do not match utility bill documentation will cause the application to be queried or rejected. For home-based businesses, the residential address may be used as the registered address with appropriate documentation.
4. Uploading Unclear or Expired Documents
Blurred, dark, poorly cropped, or expired identification documents are the single most common cause of CAC application queries and delays. Scan or photograph every document in good lighting, at the correct orientation, and confirm that all text and images are clearly legible before uploading. Expired IDs will be rejected without exception.
5. Treating Registration as the End of Compliance
Many Nigerian entrepreneurs register their business, display the certificate, and consider the compliance obligation discharged. In reality, registration initiates an ongoing compliance relationship with the CAC. Annual returns must be filed. Changes to the business must be notified. Failure to file returns results in escalating penalties and eventual deregistration, which can be more disruptive and expensive to reverse than it would have been to maintain compliance from the start.
Frequently Asked Questions (FAQ)
How much does CAC registration cost in Nigeria?
Business name registration through the CAC portal costs approximately ₦10,000 to ₦15,000 in direct CAC fees. Using an accredited agent adds ₦15,000 to ₦30,000. LLC incorporation starts from approximately ₦10,000 to ₦20,000 in CAC fees for standard share capital structures, with total costs including agent fees typically ranging from ₦50,000 to ₦150,000. All fees are subject to change; confirm current rates on the CAC portal at pre.cac.gov.ng before submitting payment.
How long does CAC registration take in Nigeria?
Business name registrations submitted with complete, accurate documentation typically take five to fifteen working days for online applications. LLC incorporations typically take two to six weeks. Applications with documentation errors or inconsistencies are queried and take longer. Using a reputable, accredited agent generally shortens the timeline by reducing the likelihood of queries.
Can I register my business with the CAC online?
Yes. The CAC’s Company Registration Portal (pre.cac.gov.ng) enables full online registration for business names and company incorporations, including form completion, document upload, and fee payment. The process can be completed entirely remotely. Physical visits to a CAC office are generally not required for standard registrations.
Do I need a lawyer to register with the CAC?
A lawyer is not mandatory for business name registration. For LLC incorporation, a declaration of compliance must be signed by a legal practitioner, so legal involvement is required at that stage, even if only for this specific document. For companies requiring a bespoke MEMART (regulated industries, complex ownership structures, investment-ready companies), engaging a solicitor to draft the constitutional documents is strongly recommended.
What happens if I do not register my business in Nigeria?
An unregistered business cannot legally open a business bank account, cannot enter into enforceable formal contracts in the business name, cannot access institutional financing, and cannot bid for government contracts. It also has no protection for its trading name. Additionally, operating a business that should be registered and is not may expose the owner to regulatory sanctions, particularly as CAC enforcement activities increase alongside the digitisation of its registry.
Is CAC registration mandatory for all businesses in Nigeria?
Any business trading under a name other than the owner’s personal name, or any business with more than one owner, must be registered with the CAC. A self-employed individual operating entirely under their own name without employees or significant formal contracts operates in a legal grey area, but any business of commercial substance operating with staff, premises, or formal clients should be registered. The question is not whether to register, but when, and the answer is always: as early as possible.
Conclusion
Learning how to register your business in Nigeria with the CAC is the most foundational administrative step any Nigerian entrepreneur can take. It is not a complex process, but it requires preparation, accuracy, and follow-through. Done well, it takes less than 60 days and costs a fraction of the commercial value it unlocks.
Registration is not the end of the compliance journey; it is the beginning. Annual returns, tax obligations, TIN registration, and VAT compliance are all part of the ongoing legal responsibility of operating a formal business in Nigeria. Build these habits early, and they remain simple. Ignore them, and they compound into costly problems.
Start properly. Register completely. Comply consistently. The foundation you build through legal registration is the same foundation on which every commercial opportunity you pursue will rest.