If you run an unregistered business in Nigeria, you cannot open a corporate bank account, sign formal contracts with serious clients, or apply for most grants and loans. This guide walks you through registering with the Corporate Affairs Commission (CAC) in 2026, whether you are a one-person hustle or starting a limited company with co-founders.
By the end, you will know which structure suits your business, what documents to gather, the current fees in naira, how long each step takes, and what to do after you collect your certificate. All fees come from the current CAC fee schedule. Tax rules are moving in 2026, so where those touch the process, we flag them.
What you need, what it costs, how long it takes
You need: Your National Identification Number (NIN), a valid government ID, a recent passport photograph (white background, JPEG), a Nigerian address, an email and phone number, and two or three proposed business names.
It costs: ₦10,500 for a business name (DIY) or roughly ₦19,000 for a private limited company at ₦1 million share capital (DIY, including NRS stamp duty). Using an accredited agent or lawyer adds ₦20,000–₦100,000.
It takes 1–3 working days for a business name and 3–7 working days for a limited company when documents are clean.
Step 1: Decide between a business name and a limited company
A business name (sole proprietorship or partnership) is simpler and cheaper. You and the business are legally the same person. If the business owes money, your personal assets are at risk. It suits freelancers, traders, market vendors, and one-person service businesses earning under roughly ₦25 million a year.
A private limited company (Ltd) is a separate legal entity from you. If it fails, your personal assets are generally protected, subject to limited exceptions. It is more credible with corporate clients, banks, and investors, and it is required if you plan to take outside investment, bid for big contracts, or build with co-founders. Companies are identified by an RC number (Registration Certificate number); business names get a BN number.
What it costs: Nothing at this stage. The choice changes every cost downstream.
How long it takes: A few hours of honest thinking, plus a conversation with anyone you plan to do business with.
Common mistakes: Registering a business name "to save money" when you already know you want investors or co-owners — you will pay again to convert later. The other common error is registering a limited company for a small side hustle and then ignoring the annual filing obligations under CAMA 2020, which attract daily penalties.
Step 2: Gather your documents and information
Have everything ready before you log in. Half-finished applications are the main reason CAC queries pile up.
You will need:
- Your NIN. Mandatory in 2026 for all proprietors, directors, and shareholders. The CAC portal verifies your NIN against the National Identity Management Commission (NIMC) database in real time. If your name or date of birth on the portal does not match your NIN record exactly, the system will reject you.
- A valid government ID (NIN slip, international passport, driver's licence, or Permanent Voter's Card).
- A recent passport photograph in JPEG format with a white background. Coloured backgrounds and blurry phone shots get rejected.
- Proof of address, ideally a utility bill, bank statement, or tenancy agreement dated within the last three months.
- Two or three proposed business names in order of preference.
- A short description of your business activities. Be specific. "General contracts" gets queried. "Retail sale of cooking gas and accessories" does not. "Provision of digital marketing and social media management services" does not.
- For a limited company: the proposed share capital (₦100,000 is the practical minimum for ordinary Nigerian-owned businesses), the share allocation between directors, and the details of at least one director.
What it costs: Free, assuming your NIN is already issued.
How long it takes: 30 minutes to an hour if your documents are in order. Up to a week if you need to fix your NIN data through the NIMC mobile app or an enrolment centre. Common mistakes: Inconsistent spelling between documents ("Chukwuma A. Okafor" on your NIN versus "Chukwuma Anthony Okafor" on the form will fail the data sync). Using a phone photograph as your "passport photograph". Having only one name in mind.
Step 3: Reserve your business name on the CAC portal
Go to the official CAC pre-incorporation portal at pre.cac.gov.ng. Create a free account using your email.
Once logged in, submit a name reservation request. The portal checks your proposed name against existing registrations. If available, the name is reserved in your account for 60 days. For limited companies, the name must end with "Limited" or "Ltd".
What it costs: ₦500 per name reservation attempt under the current CAC fee schedule. Names containing restricted words such as "Federal", "National", "Holding", "Group", or "Chamber" cost ₦5,000 and need explicit approval. If your first choice is rejected, you pay again for the next attempt.
How long it takes: Usually instant to a few hours when the name is clearly available. Up to 24 hours if a CAC officer has to review it.
Common mistakes: Names that closely resemble existing registrations, missing the suffix for the structure, or only preparing one option. Popular names go fast — always have a second and third ready.
Step 4: Complete the pre-registration form
Once your name is reserved, complete the registration form on the same portal.
For a business name, the form covers the proprietor's details, the nature of business, and the business address. For a limited company, you complete the longer Form CAC 1.1, which covers the company name, registered office address, nature of business, share capital and allocation, directors, shareholders, the company secretary (optional for small companies under CAMA 2020), and persons with significant control (PSCs) — anyone holding 5% or more of shares or voting rights, or with substantial influence.
You will also upload a Memorandum and Articles of Association (MEMART) for companies. The portal provides standard templates that work for most small businesses.
What it costs: Nothing extra at this point. Filing fees come with submission.
How long it takes: 30 minutes for a business name. One to two hours for a company, longer if you are drafting a custom MEMART.
Common mistakes: Vague business objects, mismatched director details, declaring share capital you cannot justify on paper, and forgetting to disclose all PSCs. Non-disclosure of PSCs under CAMA 2020 carries real penalties.
Step 5: Pay the fees and submit
Payment is made through the portal's integrated payment gateway (Remita and card options). Bank transfers usually clear within minutes.
For a business name, you pay the ₦10,000 CAC filing fee, bringing your total CAC cost to ₦10,500.
For a private limited company with up to ₦1 million share capital, you pay ₦10,000 in CAC fees plus roughly ₦8,500 in stamp duty to the Nigeria Revenue Service (NRS), for a total of about ₦19,000. Above ₦1 million share capital, CAC charges ₦5,000 for every additional ₦1 million (up to ₦500m), and NRS charges 0.75% as stamp duty — roughly ₦7,500 per additional ₦1 million.
What it costs: See the full table below.
How long it takes: Payment confirmation is instant. CAC review takes 1–3 working days for business names and 3–7 working days for companies, assuming no queries.
Common mistakes: Paying a roadside "agent" who promises faster approval through "connections". The CAC portal is the only legitimate payment route. Anyone offering a back channel is running you.
Also: paying for a share capital tier you do not need, just to "look big".
Step 6: Download your certificate and note your RC or BN number
Once approved, CAC issues a digital Certificate of Incorporation (for companies) or Certificate of Registration (for business names) with a digital signature and QR code. You download it directly from your portal account.
Your RC number (for companies) or BN number (for business names) is the unique identifier you will use on invoices, bank account applications, tax filings, and contracts. Save the certificate in multiple places. A Certified True Copy costs ₦5,000 if you ever need to re-issue.
What it costs: Nothing extra.
How long it takes: Instant once approved.
Common mistakes: Assuming you still need a hard-copy stamped version. Nigerian banks, NRS, and corporate procurement portals all accept the QR-coded digital certificate as the original.
Step 7: Handle post-registration compliance
You are registered, but three things still need attention before you start operating.
Tax Identification Number (TIN). As of 2026, your TIN is generated automatically when you register with the CAC and appears on your certificate or in your registered email. You no longer need a separate application at NRS or through the Joint Tax Board. Confirm your TIN is active on the TaxPro Max portal before you open a bank account, because banks ask for it.
Annual returns. Even if you made no money, you must file annual returns with CAC every year. The first return is due within 18 months of registration; after that, yearly. Business names pay ₦3,000; companies pay ₦5,000. Skip this and your status moves to "Inactive" on the CAC public search portal, where any bank or client can see it. Late penalties accumulate daily: ₦150 a day for business names, ₦250 a day for small companies, and ₦500 a day for non-small private companies, plus a one-off penalty of ₦5,000–₦10,000. A business name that ignores filings for a year accumulates roughly ₦55,000–₦60,000 in penalties — six times the cost of registration.
Nigerian Data Protection Commission (NDPC) registration if you collect personal data from customers (most businesses do, even just emails and phone numbers). The threshold and fees depend on your data-processing volume under the Nigeria Data Protection Act 2023.
Depending on your sector, you may also need NAFDAC, SON, state-level permits (LASAA signage permits in Lagos, for example), or industry-specific licences from the CBN, NCC, or NMDPRA.
Costs at a glance
| Item | Fee (₦) | Paid to | When |
|---|---|---|---|
| Name reservation | 500 | CAC | Step 3 |
| Name reservation (restricted words) | 5,000 | CAC | Step 3 |
| Business name registration | 10,000 | CAC | Step 5 |
| Private limited company (≤₦1m share capital) | 10,000 | CAC | Step 5 |
| Each additional ₦1m share capital (up to ₦500m) | 5,000 | CAC | Step 5 |
| Stamp duty (first ₦1m share capital) | ~8,500 | NRS | Step 5 |
| Stamp duty (above ₦1m) | 0.75% (~7,500/₦1m) | NRS | Step 5 |
| Optional accredited agent/lawyer | 20,000–100,000 | Agent | Variable |
| Annual returns (business name) | 3,000 | CAC | Yearly |
| Annual returns (company) | 5,000 | CAC | Yearly |
| Late filing daily penalty (BN / small co / private) | 150 / 250 / 500 | CAC | Daily |
| Late filing one-off penalty | 5,000–10,000 | CAC | Per default |
| Certified True Copy | 5,000 each | CAC | As needed |
Frequently asked questions
Can I register a CAC business name for free in 2026? Possibly. In September 2025, the CAC partnered with SMEDAN to register 250,000 micro and small enterprises at no cost. Check portal.smedan.gov.ng to see if your business qualifies and whether slots remain.
Do I need a lawyer or an accredited agent? No, not for a straightforward business name or single-director limited company. The CAC portal is designed for direct use. Bring in a professional if you have multiple co-founders with complex share arrangements, foreign shareholders, or special licences in regulated sectors (banking, insurance, oil and gas). Only CAC-accredited agents can file on your behalf — anyone else is a middleman.
What is the difference between an RC number and a BN number? An RC number is issued to a registered company (limited liability) under Part A of CAMA 2020. A BN number is issued to a business name (sole proprietor or partnership) under Part E. Banks, and corporate procurement portals can tell the difference instantly, and it signals your legal structure.
Can a foreigner register a business in Nigeria? A foreigner cannot register a business name; they must form a limited company. Any company with foreign equity (even 1%) requires a minimum share capital of ₦100 million, which attracts roughly ₦750,000 in NRS stamp duty plus the corresponding CAC fees. Foreign-owned companies also register with the Nigerian Investment Promotion Commission (NIPC). Note: Nigerian citizens living abroad are not "foreign" for this purpose — your NIN-holding diaspora cousin can register a business name or a standard Ltd from anywhere.
Does CAC registration register me for tax automatically? Yes. As of 2026, your TIN is generated automatically at registration and linked to your CAC record. You still need to log in to TaxPro Max to confirm details and meet your filing obligations to NRS and your state IRS (LIRS in Lagos, Ogun State IRS, Rivers State IRS, Kano IRS, and so on).
What happens if I do not file annual returns? Your status changes to "Inactive" on the CAC public search portal. Penalties accumulate daily, and after extended default, the CAC can strike your business off the register. Relisting costs ₦25,000 plus the accumulated arrears — far more than just keeping up with the yearly filing.
Can I change my business structure later? Yes. Business names can be converted to limited companies, and share capital can be increased. Both require formal applications, fees, and a few weeks. It is almost always cheaper to choose the right structure from the start.
The bottom line
The point is simple: register correctly the first time. The portal fees are small. The cost of redoing your registration, fixing mismatched NIN data, or paying late-return penalties is not.
Your next step: Confirm your NIN details on the NIMC mobile app, then visit pre.cac.gov.ng and reserve your business name today. The earlier you secure the name, the earlier you can open a corporate bank account and start operating as a registered business.
