CAC Registration Nigeria: How to Register a Business in Nigeria

The CAC is the regulatory body responsible for incorporating companies, business names, and limited liability partnerships in Nigeria.

Registering your business is essential for building trust with clients, opening corporate bank accounts, and ensuring legal protection. In this guide, we will take you through the entire process of registering a business in Nigeria, step by step, and explain the requirements, types of businesses you can register, costs, and frequently asked questions.

Types of Businesses You Can Register in Nigeria

Before you start your registration process, you need to determine the type of business you want to operate. The main types include:

1. Sole Proprietorship

• Owned by one individual.
• Simple to set up.
• Suitable for small-scale businesses like retail shops, food vendors, or freelancers.

2. Partnership

• Owned by two or more individuals.
• Profits and losses are shared among partners.
• Best for professional businesses like law firms, consulting firms, or medical practices.

3. Private Limited Company (Ltd)

• Has a separate legal entity from its owners.
• Limited liability protects personal assets.
• Can have between 1 and 50 shareholders.
• Suitable for medium to large businesses like tech startups, manufacturing companies, and service providers.

4. Public Limited Company (PLC)

• Can raise capital from the public.
• Requires at least 7 shareholders.

• Usually, for large businesses seeking to list on the Nigerian Stock Exchange.

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Step-by-Step Guide to Register a Business in Nigeria (CAC)

Here’s a comprehensive guide to registering your business in Nigeria with the CAC:

Step 1: Choose Your Business Name

• The first step in CAC registration is selecting a unique business name.
• You can check the availability of your business name on the CAC online portal.
• Business names should not be similar to existing names, offensive, or misleading.

Tips:

• Keep your name short and memorable.
• Include the nature of your business for clarity.

Step 2: Decide on the Business Structure

• Choose whether your business will be a sole proprietorship, partnership, or limited liability company.
• The choice affects your registration process, liability, and taxation.

Step 3: Prepare Required Documents

Depending on the business structure, you will need different documents:

Sole Proprietorship

You’ll need the following for a sole proprietorship.

• Completed CAC registration form (BN1).
• Means of identification (International Passport, Driver’s License, or National ID).
• Passport photographs of the owner.
• Proof of address (utility bill, tenancy agreement).

Partnership

You’ll need the following for Partnership business.

• Completed CAC registration form (BN2).
• Means of identification of all partners.
• Partnership agreement (optional but recommended).

Limited Liability Company

You’ll need the following for a limited liability company.

• Memorandum and Articles of Association (MEMART).
• Completed CAC registration form (CAC1.1).
• Means of identification of directors and shareholders.
• Proof of registered office address.
• Payment of stamp duties and filing fees.

Step 4: Create a CAC Online Account

• Visit the CAC registration portal and create an account.
• Fill in your personal details, business type, and email address.
• Verify your email to access the dashboard.

Step 5: Reserve Your Business Name

• On the CAC portal, use the Name Reservation tool to check name availability.
• If available, pay a small fee (approximately ₦5000–₦10,000).
• Once approved, the name is reserved for 60 days.

Step 6: Fill Out Registration Forms

1. Depending on your business structure, complete the appropriate form:

• BN1 for sole proprietorship
• BN2 for partnership
• CAC1.1 for a limited liability company

1. Provide accurate information about business owners, shareholders, directors, and the office address.

Step 7: Upload Required Documents

• Upload scanned copies of your identification, passport photographs, and MEMART (for companies).
• Ensure documents are clear and legible.

Step 8: Payment of Fees

1. Pay the required registration fees online using debit/credit cards or bank transfers.

2. Fees vary depending on business type and share capital. For example:

• Sole proprietorship: ₦5000–₦10,000
• Limited Liability Company: ₦20,000–₦50,000 (plus stamp duties)

Step 9: CAC Verification

• The CAC will review your submission, verify documents, and ensure compliance with legal requirements.
• If approved, you will receive a Certificate of Incorporation / Business Name Certificate.

Step 10: Collect Your Certificate

• Download your certificate from the CAC portal or collect the physical copy at the CAC office.
• Your business is now legally registered and recognized in Nigeria.

Post-Registration Steps

Once your business is registered, you may need to take additional steps to operate legally:

1. Obtain Tax Identification Number (TIN) – Required for corporate taxation.
2. Register for Value Added Tax (VAT) – Necessary for businesses that provide goods/services.
3. Open a Corporate Bank Account – Required to operate under your business name.
4. Obtain Necessary Business Permits and Licenses – Depending on your industry.

Common Challenges in CAC Registration

• Duplicate business names – Always check availability before reservation.
• Incomplete documents – Ensure all forms are fully completed.
• Payment errors – Confirm online payments and save receipts.
• Delays in certificate issuance – Follow up with CAC if approval takes longer than 7–14 working days.

Tips for Smooth CAC Registration

• Double-check spelling and details before submitting forms.
• Use a business email rather than a personal email for registration.
• Consider hiring a corporate lawyer or CAC consultant for large companies.
• Keep digital and physical copies of all documents.

Benefits of Registering a Business with CAC

1. Legal Recognition – Operate as a legally recognized entity.
2. Access to Loans and Grants – Banks and investors require CAC registration.
3. Limited Liability – Protects personal assets from business debts (for companies).
4. Brand Credibility – Builds trust with clients and partners.
5. Ability to Trademark Your Business – Protect your brand and intellectual property.

Frequently Asked Questions (FAQs)

1. How long does CAC registration take in Nigeria?

• It typically takes 7–14 working days, depending on business type and completeness of documents.

2. Can I register a business without a CAC office visit?

• Yes, the CAC online portal allows full online registration.

3. How much does it cost to register a company in Nigeria?

• Costs vary: ₦5,000–₦10,000 for a sole proprietorship, ₦20,000–₦50,000 for a limited liability company.

4. Can foreigners register a business in Nigeria?

• Yes, foreigners can register a business, but they may need a valid Nigerian residency permit.

5. Is it mandatory to register my business with CAC?

• While small informal businesses can operate without registration, CAC registration is highly recommended for legal protection, credibility, and access to finance.

Conclusion

Registering a business in Nigeria with the Corporate Affairs Commission (CAC) is a crucial step for any entrepreneur. Whether you’re starting a small retail shop, partnership, or large limited liability company, proper registration ensures legal compliance, credibility, and access to growth opportunities.

By following this CAC Registration Nigeria guide, you can confidently register your business, avoid common pitfalls, and set a strong foundation for your business journey in 2026.

Start your CAC registration today and take the first step towards building a legally recognized and successful business in Nigeria. Meanwhile, feel free to share this article on your social media accounts so that others can know about it.