Registering Your Business with CAC

1. Business Name or Limited Company?

This is the first real decision, and it shapes everything after it. Both are registered through the same Corporate Affairs Commission (CAC), but they are legally very different things.

2. What you need before you start

Having these ready before you open the CAC portal saves you from the back-and-forth that causes most delays:

• Proposed business names — have at least two or three alternatives ready, in case your first choice is already taken or too similar to an existing name
• A valid form of ID for the owner(s) — National ID (NIN), international passport, or driver's license
• A real physical address in Nigeria — a P.O. Box is not accepted; your home address is fine if you're running the business from there
• A clear description of what the business actually does — CAC asks for the specific nature of the business, not a vague category
• For a Limited Company: details of directors, shareholders, and — strongly advised — a company secretary

3. The registration process, step by step

1. Search for name availability. Use the CAC's public name search to confirm your preferred name isn't already taken or confusingly similar to an existing one.
2. Reserve the name. Once you find an available name, reserve it on the portal so no one else can register it while you complete your application.
3. Complete the registration form on the CAC portal — nature of business, address, and owner/director details.
4. Upload your documents — ID, passport photograph, and any structure-specific documents (e.g. memorandum details for a company).
5. Pay the registration fee through the portal.
6. Wait for review. Applications with complete, consistent information typically move through without a hitch. Errors or unclear documents usually trigger a query, which extends the timeline until you correct them.
7. Download your certificate once approved — this is now issued digitally.

4. Costs and timelines

Registration fees and processing times are updated by the CAC from time to time, and reported figures online vary depending on when they were written. As a general shape:

• Business Name registration is the cheaper, faster option — often processed within a few working days once documents are in order
• Limited Company registration costs more and typically takes somewhat longer, partly because there's more to review

5. What happens after your certificate arrives

A CAC certificate is the starting line, not the finish line. A few obligations begin the moment you're incorporated:

• Tax Identification Number (TIN). This is required to open certain bank accounts and to apply for a Tax Clearance Certificate. For many company registrations, a TIN is now generated automatically as part of the process; business names may need a separate step with the tax authority.
• Corporate bank account. Most banks require your CAC certificate before opening one — this is usually the very next step after registration.
• Annual returns. Companies must file annual returns every year to confirm they're still active. Skip this for long enough, and the CAC can strike the company off the register.
• First AGM and auditors (for companies) — there are windows after incorporation within which these should happen.

6. Myths that trip entrepreneurs up

"I need a Nigerian partner to own a company."

Not generally true. Under Nigerian investment law, foreign nationals can own 100% of the equity in most Nigerian companies, with no requirement for a local director or shareholder. There are sector-specific exceptions (such as oil and gas, broadcasting, and shipping) where local-equity rules apply.

"A Business Name is basically the same as a Limited Company."

It isn't. The liability difference in the table above is the whole point — a Business Name leaves your personal assets exposed; a Limited Company does not.

"If I'm not actively trading, I don't need to file anything."

Even a dormant company is expected to file annual returns. Let it lapse for long enough, and the CAC may assume the company has been abandoned and strike it off.