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Registering with the Corporate Affairs Commission is the moment a business stops being something you run from your phone or a shop corner and becomes something the law recognises. It lets you open a corporate bank account, bid for contracts, protect your business name and, if you choose a company, separate your personal assets from business debts. Most guides stop at “visit the portal and pay.” They skip the parts that actually cause delays: which structure to pick, what the fees really add up to, and the filings that continue after the certificate arrives.
The scale of the opportunity is real. The 2017 national survey by the National Bureau of Statistics and SMEDAN counted about 41.5 million micro, small and medium enterprises in Nigeria. Most are very small, and a good number operate informally. This guide walks through the decision and the process in the order you will meet them, with the costs and mistakes that matter along the way. Fees and rules were checked in November 2026, but the CAC portal is always the final authority on current amounts.
Business name or limited company: which one do you need?
Under the Companies and Allied Matters Act 2020 (CAMA 2020), the CAC registers business names, private and public companies, companies limited by guarantee and incorporated trustees. The Act also introduced limited partnerships and limited liability partnerships. For most first-time owners, though, the real decision is between a business name and a private limited company.
A business name suits a sole proprietor or an ordinary partnership. It is quick and cheap to set up, but the owner and the business are legally the same person. If the business owes money or is sued, your personal assets can be pulled in. A private limited company is a separate legal entity, and its shareholders are only liable for any unpaid amount on their shares. CAMA 2020 sets the minimum issued share capital at ₦100,000 for private companies and ₦2,000,000 for public companies, according to this law firm summary of the Act. Many advisers suggest ₦1,000,000 because the base filing charge covers share capital up to that level anyway.
If you are unsure, read our guide to types of business structures before you commit, since converting later costs time and money. Owners still testing an idea may also find it useful to understand the difference between a small business and a startup, and to see how others approach starting a business at home.
What to prepare before you open the portal
Having everything ready before you start is the single best way to avoid back and forth with CAC reviewers. You will need:
- Two or three proposed business names, in order of preference
- A clear description of what the business will actually do
- Full names, addresses, phone numbers and email addresses of the proprietor, or of every director and shareholder
- A valid means of identification (the National Identification Number is the most commonly used), plus a passport photograph and signature
- An office or business address where you can really receive correspondence
- For a company, the share capital, how shares are split, and details of any person with significant control
The names on your application must match your identification documents exactly. A missing middle name or a swapped surname order is enough to stall a file. Your address deserves the same care, and our piece on choosing the right business location explains why the place you list should make sense for the business you describe.
Step by step: registering on the CAC portal
Step 1: Search and reserve your name. Create an account on the CAC portal and run a name availability search. The search fee is small, quoted between ₦500 and ₦1,000, and it is not refunded if your name is rejected, so check several variations before paying. Avoid names that closely copy an existing registration or that imply a government connection. Our guide on choosing the right business name gives practical rules for picking something both memorable and registrable.
Step 2: Complete the application form. Choose your entity type, enter the business activities, and add the personal details of everyone involved. For a company, you also set the share capital and shareholding. Be specific and truthful about the nature of the business. Vague wording can trigger a query, and wording that points to a regulated activity can bring extra requirements.
Step 3: Upload your documents. Attach identification, photographs, signatures and any supporting documents requested for your entity type. Scan clearly, because blurred uploads are a common reason for rejection.
Step 4: Pay the statutory fees. Payment goes through the portal’s payment gateway. Keep the receipt and reference number, because you will need them if the application is queried.
Step 5: Wait for review and respond to queries. A correctly filed business name application commonly takes about three to seven working days, based on published agent and practitioner guides, and company applications can take somewhat longer. If the CAC raises a query, respond quickly and correct only what was flagged.
Step 6: Download your certificate. Once approved, you receive your certificate of registration and registration number. Save several copies, store one securely online, and confirm that every detail printed on it is correct while corrections are still easy.
How much does CAC registration cost?
The honest answer is “it depends on the entity, your share capital and whether you use an agent,” and the figures have moved in recent years. The CAC issued a revised fee schedule that took effect on 1 August 2025. A legal update on that schedule reports that the charge for a private company with share capital up to ₦1,000,000 stayed at ₦10,000, with ₦10,000 added for each extra ₦1,000,000. For business names, current guides quote anywhere from ₦10,000 to ₦20,000 for the filing fee, so confirm the live figure on the portal before you pay.
| Cost item | Business name | Private limited company |
|---|---|---|
| Name search or reservation | ₦500 to ₦1,000 | ₦500 to ₦1,000 |
| CAC filing fee | ₦10,000 to ₦20,000 (confirm on portal) | ₦10,000 up to ₦1,000,000 share capital, plus ₦10,000 per extra ₦1,000,000 |
| Stamp duty on share capital | Not applicable | Commonly quoted around ₦7,500 on ₦1,000,000 |
| Accredited agent or lawyer (optional) | About ₦15,000 to ₦50,000 | From about ₦40,000 |
| Annual returns | Roughly ₦3,000 | ₦5,000 for share capital between ₦100,000 and ₦100,000,000 |
Agent fees are the most flexible part of the bill. Doing the filing yourself costs less, while a professional saves time if your situation is complicated. If you go the agent route, speak to a qualified business lawyer when you have multiple shareholders, foreign participation or a regulated activity. The Nigerian Investment Promotion Commission is the place to check requirements when foreign owners are involved.
What changes after you register
Registration is the start of your compliance life, not the end of it.
Tax identification. Nigeria’s tax administration changed on 1 January 2026, when the Federal Inland Revenue Service became the Nigeria Revenue Service, as reported by Radio Nigeria. Under the new regime, the CAC registration number is meant to serve as a company’s tax ID, and the National Identification Number serves individuals. Check your tax position with the revenue service after registering rather than assuming everything is linked.
Annual returns. Every registered entity must file annual returns with the CAC. For companies, late filing penalties can fall on the company and on each director or officer, while for business names the penalty falls on the business itself, according to the revised schedule discussed above. A law firm’s explanation of annual returns penalties also notes that long default can lead to a company being struck off the register.
Persons with significant control. Nigeria launched its Open Central Register of persons with significant control in May 2023, so companies should keep beneficial ownership details accurate and updated.
Protect the business. Once you are formal, think about cover. Our guide to business insurance explains the main types and what they protect against.
Common mistakes that delay or cost you money
Registering the wrong structure. Many founders pick a business name because it is cheaper, then discover they need a company to sign larger contracts or limit personal risk. Decide with your plans for the next two or three years in mind.
Submitting names that do not match identification. Spelling differences between the application and the ID are one of the most frequent reasons for rejection. Copy details exactly as they appear on the document.
Skipping the name check or having no backup names. A rejected name usually means paying another search fee and waiting again. Prepare alternatives before you start.
Describing the business loosely. Broad or unclear objectives invite queries. Regulated activities, such as payment services, carry their own higher minimum capital and licensing rules set by sector regulators, so confirm these before you file.
Trusting unverified agents. Anyone can claim to be an agent. Ask for the official receipt, confirm the registration appears in the CAC’s public search, and never hand over your only copy of your identification.
Forgetting annual returns. Many owners treat the certificate as the finish line. Put the filing window in your calendar the day you register, because penalties build up quietly and a long default risks removal from the register.
Not updating the CAC when things change. A new address, a new director or a change in shareholding must be filed. Out of date records cause problems when you apply for a loan or tender.
Registering without a plan. A certificate does not make a business viable. Before you spend on registration, write down how you will earn money, who your customers are and what you will charge. Our guide to writing a business plan walks through this step by step.
Final thoughts
CAC registration is straightforward when you prepare properly, choose the structure that fits your risk, and budget for the ongoing costs as well as the first payment. Start by deciding between a business name and a company, gather your documents, check your name carefully, and keep a record of every receipt. Then file your annual returns on time every year. If your situation involves several owners, foreign investors or a regulated sector, paying for professional advice early is usually cheaper than fixing mistakes later. For wider support on formalising and growing a small business, SMEDAN publishes programmes and guidance for micro, small and medium enterprises.
This article is general information, not legal or tax advice. Fees and procedures change, so confirm current details with the CAC and the Nigeria Revenue Service before you pay or file.
