As someone who has worked with thousands of entrepreneurs, I’ve seen first-hand how one decision; registering your business, can unlock countless opportunities. One of the first questions I often get is: How much is the CAC registration fee in Nigeria? And sometimes even: Is CAC registration free? These are valid concerns, especially when you’re bootstrapping a business from scratch.
One of the first things you need to understand when setting up your business is the cost of registration. CAC registration fees vary depending on the type of business you want to register. Whether it’s a simple Business Name registration or a more structured Company registration, knowing what to expect helps you budget properly and move forward with confidence.
The Corporate Affairs Commission (CAC) is the government body responsible for registering businesses in Nigeria. They regulate everything from business names and limited liability companies to Incorporated Trustees like NGOs, churches, and community-based organisations. CAC gives your business legal recognition, and without it, you’re locked out of opportunities like funding, partnerships, tenders, and opening a business bank account.
In this guide, I’ll break down the CAC registration fees for each business structure clearly and simply. You’ll understand what it costs to register, whether you’re doing it yourself or seeking professional assistance.
If you’re ready to register your business and need a reliable partner to handle it professionally, we can help. At Entrepreneurs.ng, we offer fast, affordable, and stress-free business registration services tailored to your needs. Get started today by getting our Business Registration Service.
See Also: Factors to consider before choosing a legal structure for your business.
Key Takeaways
- CAC registration is the foundation of formal business operations in Nigeria. It’s not just a bureaucratic step, it’s what gives your business a legal identity, access to opportunities, and the credibility to operate and grow.
- When you know what CAC does: from name reservation to compliance, you’re better equipped to register properly, avoid mistakes, and stay on the right side of the law
- Legal compliance is an ongoing process, not a one-time action. Filing annual returns, updating records, and requesting changes are all part of staying compliant. CAC ensures these processes are followed to maintain business integrity.
- Digital access has made business registration more accessible than ever. With CAC’s online portal, entrepreneurs anywhere in Nigeria or abroad can register their business and access key services without visiting any office.
Overview of the Corporate Affairs Commission (CAC)
The Corporate Affairs Commission (CAC) is the regulatory body established by the Nigerian government to oversee and manage the registration and regulation of business entities in the country. It was created under the Companies and Allied Matters Act (CAMA) of 1990 and operates as a self-funded agency under the supervision of the Federal Ministry of Industry, Trade, and Investment.
CAC is the first point of contact for anyone registering a Business Name, a Private Limited Company, or an Incorporated Trustee. Without CAC registration, your business lacks legal identity and cannot fully participate in formal economic activities such as opening a corporate bank account, applying for grants, or bidding for contracts.
Core Functions of the CAC
Over the years, I’ve seen how much clarity business owners gain when they understand what the Corporate Affairs Commission (CAC) actually does. Beyond just registering your business, CAC has a set of core responsibilities that directly affect how you operate, grow, and stay compliant as an entrepreneur in Nigeria.
Below are the key functions of the CAC in Nigeria:
Business Registration
One of CAC’s main responsibilities is helping entrepreneurs formalise their business. From registering Business Names to Limited Liability Companies and Incorporated Trustees, CAC provides a legal identity for your business.
Once registered, your business becomes recognised under Nigerian law and is better positioned for growth and opportunity.
Name Availability and Reservation
Before any business can be registered, the name must first be approved. CAC checks to ensure the proposed name is not already taken or misleading. This name reservation step is simple but important, and it helps protect your brand identity in the long run.
Issuance of Incorporation Certificates
Once your documents are in order and payment is made, CAC issues a Certificate of Incorporation. This certificate proves that your business is officially registered under Nigerian law. It’s one of the documents banks, investors, and government bodies will ask to see when you apply for funding or open a corporate account.
Maintenance of Company Records
Every registered business is added to CAC’s public database. This means your business can be searched and verified by anyone—clients, banks, or partners. It builds trust and confirms that you’re running a legitimate operation.
Regulation and Compliance Monitoring
Once you’re registered, you’re expected to stay compliant. CAC ensures that businesses file their annual returns, update their company information when changes occur, and follow all legal requirements. This protects you from fines and keeps your business in good standing.
Post-Incorporation Services
As your business evolves, you might need to make changes; like increasing your share capital, changing directors, or requesting certified documents. CAC handles these post-incorporation services to keep your records accurate and legally up to date.
See Also: How To Check If a Company is Registered in Nigeria-Complete Verification Guide
Types of Business Structures You Can Register with CAC
Before you begin the registration process with the Corporate Affairs Commission (CAC), it’s important to understand the different types of business structures available to you. Each option serves a different purpose and comes with its own legal, financial, and operational implications.
Choosing the right structure depends on the nature of your business, your growth plans, and how much control or liability you’re willing to take on.
Business Name (Sole Proprietorship or Partnership)
A Business Name is the most basic and accessible structure for small business owners. It is typically used by individuals running a one-person operation or by two or more people in a simple partnership. Registering a Business Name gives your hustle a legal face and helps you open a business account, apply for grants, or pitch to corporate clients.
However, a Business Name does not create a separate legal entity. That means the owner is personally responsible for the business’s liabilities. It’s best suited for low-risk ventures or those just getting off the ground.
See Also: Advantages of registering your business with the Corporate Affairs Commission.
Private Limited Company (Ltd)
If you’re looking to build a structured business with the potential to scale, registering a Private Limited Company is the way to go. This structure creates a separate legal entity, meaning the business is distinct from its owners who are known as the shareholders.
One of the key advantages of a Limited Company is limited liability. Shareholders are only responsible for the business’s debts up to the value of their shares. It also makes it easier to attract investors, raise funds, and establish long-term credibility.
You’ll need at least one director and a company secretary to register, and you must declare your share capital.
See Also: How to register a company successfully in Nigeria.
Public Limited Company (PLC)
A Public Limited Company is a more advanced structure for larger businesses intending to raise capital from the public through the stock exchange. It is subject to stricter compliance regulations and requires a minimum of 2 directors and a company secretary.
This structure is best suited for companies with significant capital and an ambition to operate on a national or international scale. It’s not ideal for small businesses due to the high regulatory demands.
Company Limited by Guarantee
This type of company is typically used for non-profits and organisations that aim to promote education, art, science, religion, or charity without the intention of making profits for distribution. Instead of shareholders, these companies have guarantors who agree to contribute a nominal amount if the company is wound up.
A Company Limited by Guarantee is ideal for foundations, professional associations, and initiatives that serve public interest without a profit motive.
Incorporated Trustees
This structure is used for religious bodies, NGOs, social clubs, and community-based organisations. Registering as an Incorporated Trustee gives the organisation legal identity, allowing it to operate bank accounts, own property, and carry out its mission legally.
It requires a Board of Trustees, a constitution, and publication in national newspapers. The process can be more detailed and time-consuming, but it’s essential for organisations looking to build trust and operate transparently.
Understanding these business structures helps you make the right decision from the start. Next, we’ll be discussing what each type of registration costs so you can budget accordingly.
See Also: Detailed explanation of the different business structures in Nigeria
A Breakdown of CAC Registration Fees in Nigeria
One of the most common questions I get from entrepreneurs is, “How much is the CAC registration fee in Nigeria?” And it’s a valid question. When you’re starting a business, every naira counts, and you need to know exactly what you’re paying for. CAC registration fees vary depending on the type of structure you choose, and knowing these costs can help you plan smarter and avoid unnecessary expenses.
Let’s take a look at the fees for different business types and what each one covers.
Business Name Registration
If you’re a solo entrepreneur or running a small partnership, Business Name registration is the most accessible and affordable option. It gives you legal recognition without the complexities of share capital or formal board structures.
To register a business name, CAC charges a ₦500 fee to reserve your name, followed by a ₦10,000 registration fee. In total, you’ll pay ₦10,500. Once completed, you’ll receive a Certificate of Registration, which you can use to open a business bank account or apply for government support.
Private Limited Company (LTD) Registration
For entrepreneurs who want to build a more structured business with growth potential, registering a Private Limited Company is the ideal route. It creates a legal entity that is separate from you, offering liability protection and making it easier to attract investors.
You’ll pay ₦500 to reserve your company name, and the registration fee for a share capital of ₦1,000,000 is ₦10,000. Additionally, there’s a ₦7,500 stamp duty charge for the first ₦1,000,000, and for any capital above that, CAC charges 0.75% of the total value. Your total cost starts from ₦18,000 and increases depending on how much share capital you declare.
Incorporated Trustees (NGOs, Churches, Associations)
If your organisation is not-for-profit, such as an NGO, religious group, or community association, you’ll register under the Incorporated Trustees category. This type of registration goes beyond just paperwork, it involves public transparency and legal scrutiny.
You’ll begin with a ₦500 name reservation fee. The registration fee itself is ₦30,000. CAC also requires that you publish a notice of your intention to register in two national newspapers, which can cost between ₦40,000 and ₦60,000. Altogether, you should budget between ₦70,500 and ₦90,500 for this process. Once approved, your organisation receives a Certificate of Incorporation and gains legal standing to operate nationwide.
See Also: Requirements for NGO Registration With CAC in Nigeria
Additional Statutory Costs
Aside from registration, there are other costs you might encounter. For example, you may need Certified True Copies (CTCs) of documents when dealing with banks or tender processes, each CTC costs ₦6,500.
To keep your business compliant, you’ll also need to file Annual Returns each year, which costs ₦5,000. If you miss a deadline, late filing penalties will apply and can vary depending on the business structure and time frame.
CAC Registration Fees Comparison Table
| Business Type | Name Reservation | Registration Fee | Stamp Duty | Other Statutory Costs | Total Estimated Cost |
|---|---|---|---|---|---|
| Business Name | ₦500 | ₦10,000 | Not Applicable | None | ₦10,500 |
| Private Limited Company | ₦500 | ₦10,000 (for ₦1m capital) | ₦7,500 for ₦1m0.75% above ₦1m | None | ₦18,000+ |
| Incorporated Trustees | ₦500 | ₦30,000 | Not Applicable | Newspaper Publication: ₦40,000–₦60,000 | ₦70,500 – ₦90,500+ |
Having a clear picture of these fees helps you choose the right business structure for your goals, and register it with clarity and confidence. If you’re using the services of an accredited agent, be sure to add a service charge to your budget, as this is separate from CAC’s official fees.
A Step-by-Step Guide On How To Carry Out CAC Business Registration in Nigeria
Registering your business with the Corporate Affairs Commission (CAC) might feel overwhelming at first, especially if it’s your first time. But with the right information and guidance, it becomes a smooth and empowering process. If you’re formalising a side hustle, launching a new venture, or setting up an NGO, the steps to register with CAC are clearly defined.
Here’s a practical, step-by-step guide to help you through it.
Step 1: Decide on a Business Structure
Before anything else, you need to be clear about the type of business you’re setting up. This choice will shape your registration requirements and determine how you’ll run your business. A Business Name is perfect if you want something simple, especially as a sole proprietor. A Limited Liability Company gives you structure and room to scale. And if you’re starting an NGO, religious organisation, or a club, then Incorporated Trustees is the route to take.
If you’re unsure about which structure suits you best, that’s one of the things we help with at Entrepreneurs.ng. We take time to understand your vision and then advise you on the most suitable registration path. You can call us directly on 08038874148 to speak with an expert or visit our Business Registration Services page to learn more.
Step 2: Conduct a Name Search and Reserve Your Business Name
The name of your business says a lot about who you are and what you do. It’s your first brand impression. CAC requires that every name goes through a search process to make sure it’s not already taken or too similar to another registered entity.
Once your proposed name is approved, you’ll pay ₦500 to reserve it. The reservation gives you exclusive use of that name while you complete the rest of your registration. This step is important because if your name gets rejected or contested, it can set you back.
Step 3: Prepare the Required Documents
Here’s where many people get stuck, especially if they’re registering for the first time. Each business type has its own document checklist. For Business Names, you’ll need a valid ID, passport photographs, and basic business info. Companies require more: like a Memorandum and Articles of Association, director details, and share capital breakdown. For NGOs and associations, CAC expects a constitution, trustee information, and meeting records.
This step is crucial because even small errors can cause delays. That’s why many entrepreneurs come to us to help them get it right the first time. If you’d like a smooth and flawless registration process, you can reach out to us on 08038874148.
Step 4: Pay the Registration Fees
Every business registration comes with a fee. For Business Names, the registration fee is ₦10,000. Limited Liability Companies pay ₦10,000 for the first ₦1,000,000 in share capital, plus ₦7,500 as stamp duty. Incorporated Trustees pay ₦30,000 for registration, and they must also cover the cost of newspaper publications, which can range between ₦40,000 and ₦60,000.
These payments are made through CAC’s online platform or designated bank channels.
Step 5: Upload Your Documents to the CAC Portal
Once your documents are ready and your fees are paid, you’ll upload everything to CAC’s Company Registration Portal (CRP). This part of the process is done online. You’ll need to scan your documents clearly, label them properly, and upload them in the required format.
It’s important to double-check everything before submission. Incomplete or incorrect uploads can delay your approval.
Step 6: Await Approval and Receive Your Certificate
After reviewing your application, CAC will approve it and issue your certificate. For Business Names, you’ll get a Certificate of Registration. For Limited Companies and Trustees, you’ll receive a Certificate of Incorporation, alongside other supporting documents.
You can download your certificate from the CAC portal. This certificate is your official proof that your business is now a recognised legal entity in Nigeria.
Step 7: Get Your Tax Identification Number (TIN)
Once your business is registered, you’ll also be assigned a Tax Identification Number (TIN) by the Federal Inland Revenue Service (FIRS). This number is necessary for paying taxes, opening a business account, and accessing financial services.
Thanks to the integration between CAC and FIRS, TINs are now automatically generated during registration.
Step 8: Open a Business Bank Account
With your CAC certificate and TIN in hand, the next step is to open a corporate bank account. This helps you separate your personal and business finances, gives you access to business loans, and builds credibility with clients.
You’ll typically need your CAC documents, TIN, valid ID, passport photo, and proof of address. Different banks may have slightly different requirements, so it’s always good to confirm what your preferred bank needs before heading there.
Common Mistakes to Avoid When Registering Your Business
Over the years, I’ve seen many entrepreneurs run into the same avoidable errors when registering their businesses. These mistakes can cause delays, lead to rejections, or cost you more in the long run.
Here are some of the most common ones you should avoid:
1. Choosing a Conflicting or Unclear Business Name
Many registrations are delayed simply because the proposed business name is too similar to an existing one or uses restricted terms. A name that sounds vague, misleading, or already taken will most likely be rejected by CAC. Always conduct a proper name search and have alternative options in mind.
2. Submitting Incomplete or Inaccurate Documents
A lot of applications get stuck because of missing information or errors in submitted forms. Even small mistakes like spelling mismatches or incomplete sections can delay your approval. Always double-check everything before submission.
3. Misunderstanding the Structure You Need
Some people register a Business Name when they actually need a Limited Company. Others assume that an NGO can be registered as a Business Name. Registering under the wrong structure can affect your ability to scale, raise funds, or operate legally. Make sure you fully understand the implications of each structure before choosing one.
4. Delaying Post-Incorporation Filings
After you register, there are still legal responsibilities like filing annual returns, updating changes to directors, or increasing share capital. Many business owners ignore these until it’s too late, leading to fines and complications.
5. Ignoring CAC’s Guidelines
From document formatting to naming rules, CAC has specific requirements that must be followed. Not reading or understanding these guidelines often results in rejected submissions.
Avoiding these mistakes will save you time, money, and unnecessary stress. It also sets your business on the right path from day one.
FAQs About CAC Registration Fees in Nigeria
How much is the CAC registration fee in Nigeria?
It depends on the type of business. Business Name registration costs ₦10,000. Limited Liability Companies pay ₦10,000 for share capital up to ₦1,000,000, plus stamp duty. Incorporated Trustees cost ₦30,000 plus newspaper publication.
Is CAC registration free?
No. There are official fees for each business type. While you can register on your own, there are still mandatory payments involved.
How long does CAC registration take?
Business Name registrations typically take 1–3 working days. Company and NGO registrations may take up to 5–10 working days, depending on document accuracy and review timelines.
Can I register a business online from anywhere in Nigeria?
Yes. CAC’s portal allows you to register entirely online. You can do it from anywhere as long as you have access to the internet and the required documents.
Do I need a lawyer or consultant to register my business?
Not necessarily. You can register directly through the CAC portal. However, many people choose to work with professionals to avoid mistakes and save time.
Can one person register a company in Nigeria?
Yes. Under the new CAMA provisions, a single individual can register and own a Limited Liability Company.
What happens after CAC registration?
You’ll receive your certificate and be assigned a Tax Identification Number (TIN). From there, you can open a business bank account and begin operations officially.
Conclusion
CAC registration is more than a box to tick, it’s a critical part of building a real business. It’s the step that takes your idea from hustle to structure. And when done right, it opens doors to new opportunities: access to finance, credibility with clients, and recognition by government and corporate institutions.
You’ve now seen what it takes to register a business in Nigeria, the CAC registration fees for each business structure, and how to avoid the common pitfalls. What matters most is getting started, and doing it right. The more informed you are, the better your foundation will be.
Here are ways Entrepreneurs.ng can help you start or scale your business:
- Register your business today with Entrepreneurs.ng’s Business Registration Services.
- Tell Your Brand Story on Entrepreneurs.ng, let’s showcase your brand to our global audience.
- Need help with your marketing strategy? Get a Comprehensive Marketing and Sales Plan here.
- Sign up for our Entrepreneurs Success Blueprint Programme to learn how to start and scale your business in just 30 days.
- Book our one-on-one consulting and speak to an expert about structuring and growing your business.
- Visit our shop for business plan templates other valuable resources to guide you.
- Get our Employee-Employer Super Bundle NDA templates to legally protect your business and workforce.
- Join over 20,000 entrepreneurs by signing up for our newsletter and receiving valuable business insights.
