Operating without proper business registration in Nigeria limits your access to essential services like business banking, government contracts, and investor funding.
Whether you’re a freelancer looking to formalise your services or an entrepreneur planning to scale nationally, understanding the Corporate Affairs Commission registration process is your gateway to legitimacy and growth.
This article walks you through every requirement, step, and cost involved in registering your business in Nigeria.
Types of Business Entities You Can Register in Nigeria
Choosing the right business structure impacts everything from liability exposure to tax obligations and growth potential. Nigeria offers four primary registration options, each suited to different business goals and circumstances.
- Business Name Registration – creates a sole proprietorship or partnership without creating a separate legal entity. This structure works best for small businesses, freelancers, consultants, and service providers with limited liability concerns. The business owner maintains unlimited personal liability, meaning personal assets remain exposed to business debts and legal claims. Registration costs remain minimal, typically under ₦15,000 total, making this option attractive for startups with limited capital.
- Private Limited Liability Company (Ltd) – represent separate legal entities distinct from their owners, providing crucial limited liability protection. This structure requires a minimum of one director and one shareholder, though the same person can fulfil both roles. Directors’ personal assets remain protected from business obligations. Companies can issue shares to raise capital, making investor funding possible. This structure supports multiple shareholders, profit distribution through dividends, and easier business transfers or sales. Registration costs range from ₦50,000 to ₦150,000 depending on authorised share capital.
- Public Limited Company (PLC) – can offer shares to the general public and trade on the Nigerian Exchange Limited. This structure requires a minimum authorised share capital of ₦2 million and faces significant regulatory requirements, including audited financial statements, board composition rules, and shareholder meeting obligations. PLCs suit established businesses planning public offerings or requiring substantial capital raises.
- Incorporated Trustees – Non-profit organisations register as incorporated trustees with a minimum of three trustees. This structure exclusively serves non-profit purposes, including charitable activities, religious organisations, professional associations, and foundations. Registration costs approximately ₦100,000, including professional fees, with ongoing compliance requirements for maintaining non-profit status.
Read More: How To Register A Co-Operative Society In Nigeria
Requirements For Business Registration In Nigeria
Successful business registration in Nigeria depends on meeting specific documentation and eligibility requirements that vary by business type.
- General Requirements
Every registration application requires proof of name availability through CAC’s name search portal. Valid identification includes National Identification Number (NIN), driver’s license, or international passport for all directors, shareholders, or proprietors and recent passport photographs.
A registered address in Nigeria is essential, whether residential or commercial. While physical office space isn’t mandatory, the address must be accessible for official correspondence. Active phone numbers and email addresses complete the contact information requirements.
- Additional Requirements By Entity Type
Limited liability companies need Articles and Memorandum of Association outlining company objectives, share structures, and governance frameworks. CAC Form 7 captures particulars of directors, including addresses, occupations, and other directorships. CAC Form 4 provides notice of registered address, while Form CAC 8 contains a declaration of compliance with registration requirements.
Partnership agreements become necessary for multi-partner business names, clearly defining profit sharing, decision-making authority, and dissolution procedures.
- Special Licenses And Permits
Certain industries require additional approvals before or after registration. Financial services need the Central Bank of Nigeria or the Securities and Exchange Commission licenses.
Healthcare businesses require Ministry of Health permits and professional body registrations. Educational institutions need Ministry of Education approvals, while oil and gas companies require Department of Petroleum Resources licenses.
Food and beverage businesses need NAFDAC registration for product safety compliance. And so on.
Step-by-Step Process of Business Registration in Nigeria
Step 1: Name Search And Reservation
Visit the CAC Company Registration Portal to begin your name search process. The system checks proposed names against existing registrations, similar names, and restricted terms. Name search costs ₦500 online or ₦1,000 at physical CAC offices nationwide.
It is advised that you prepare 3-4 alternative names, as first choices often face similarity conflicts. The system flags names too close to existing businesses, including phonetic similarities. Reserved names remain valid for 60 days, providing time to complete registration requirements. Consider trademark implications when selecting names, ensuring your choice doesn’t infringe existing intellectual property rights.
Step 2: Prepare Required Documents
Gather all documentation based on your chosen entity type. Company registrations require a memorandum and articles of association, which legal professionals can prepare for you.
Business name registrations need simpler documentation, but require careful attention to partnership agreements for multi-partner structures.
Ensure all forms are completed accurately with consistent information across documents.
Passport photographs must meet CAC specifications with clear features and appropriate backgrounds.
Consider engaging experienced business registration agents who understand common pitfalls and can expedite document preparation.
Step 3: Submit Application Online/Offline
Upload your documents online using the Company Registration Portal for faster processing.
The online system provides real-time feedback on document acceptance and allows immediate corrections. Offline submissions remain available at CAC offices in all 36 states, but typically take longer for processing.
Upload high-quality scanned documents in approved formats, usually PDF or JPEG. The system validates document completeness before allowing submission. Track application progress through your online dashboard, receiving notifications for any additional requirements or approvals.
Step 4: Pay Registration Fees
After uploading relevant documents, the business owner will be directed to make payment through the integrated payment system.
CAC accepts online transfers, bank payments, and cash payments at physical offices. Payment confirmations are generated automatically for online transactions, while offline payments require manual receipt collection.
The system calculates exact fees based on entity type and share capital, eliminating guesswork. Keep payment receipts for record-keeping and potential dispute resolution.
Step 5: Receive Certificate
An electronic certificate of registration and certified true copies become available through your online portal once processing is complete. Business names receive certificates of registration, while companies receive certificates of incorporation. Additional documents include Tax Identification Numbers and certified true copies of constitutional documents.
We recommend that you download and print certificates immediately upon availability. Physical collection remains possible at CAC offices for those preferring hard copies. The certificate serves as legal proof of business existence and enables access to banking, licensing, and contract opportunities.
Action Steps
Successfully navigating business registration in Nigeria opens doors to growth opportunities that transform entrepreneurial dreams into sustainable enterprises.
While self-registration remains possible, professionals understand common pitfalls, regulatory requirements, and optimal strategies for different business types.
Whether you need assistance navigating this requirement as a Nigerian in the diaspora or in Nigeria, our team of experts is available to help.
Contact us today to make your business registration in Nigeria seamless and affordable.
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