Many small businesses in Nigeria run for years without registering, and miss out because of it. Banks ask for a CAC certificate before opening a business account, many companies and government programs only work with registered businesses, and customers simply trust a registered name more. The good news is that registering a business name with the Corporate Affairs Commission (CAC) can now be done entirely online. Here is how.
Business name or limited company: which one do you need?
- Business name (sole proprietorship or partnership): the simplest and cheapest option. Best for individual traders, freelancers, artisans and small shops. You and the business are legally the same, so you are personally responsible for its debts.
- Private limited company (Ltd): a separate legal entity with its own liability. It costs more and comes with more filing obligations, but it is better if you plan to raise investment, bid for large contracts or grow a bigger team.
Most new small businesses start with a business name and convert to a limited company later. This guide covers business name registration.
What you need before you start
- Your National Identification Number (NIN) and a valid ID (NIN slip, international passport, driver’s licence or voter’s card).
- A recent passport photograph in digital format.
- A photo or scan of your signature on plain white paper.
- A working email address and phone number.
- A physical business address in Nigeria (a residential address is acceptable for small businesses, but not a P.O. Box).
- A clear description of what your business does.
- Two or three proposed business names, in order of preference.
Step by step: registering your business name online
- Create an account on the CAC Company Registration Portal at icrp.cac.gov.ng and verify your email.
- Search and reserve your name. Enter your proposed names to check availability, then pay the reservation fee. Approved names are usually held for 60 days, so complete registration within that time.
- Fill the registration form. Enter the proprietor’s details, the nature of the business and the business address.
- Upload your documents: ID, passport photograph and signature.
- Pay the registration fee online through the payment options on the portal (for example Remita).
- Wait for approval. A CAC registrar reviews your application. If something is wrong, you will be asked to correct it.
- Download your certificate. Once approved, your certificate and status report become available on the portal and are usually sent to your email.
How much does it cost and how long does it take?
At the time of writing, official CAC fees for a business name come to roughly ₦11,000 to ₦12,000 in total, covering the name reservation, the registration and small portal service charges. Fees change, so always check the current amount on the CAC portal before you pay. When everything is submitted correctly, approval typically takes between 2 and 7 working days.
You can also use a CAC accredited agent if you prefer someone to handle it for you. Agents charge a service fee on top of the government fee, so confirm the agent’s accreditation with CAC and get the total cost in writing before you pay. It is also worth checking whether SMEDAN is currently running a free business name registration scheme for micro and small businesses, as it has done before.
Mistakes that delay approval
- Choosing a name that is too similar to an existing business or uses restricted words such as “Federal”, “National”, “Bank” or “Insurance” without the right approval.
- Blurry ID or photograph uploads.
- Details that do not match your NIN record exactly.
- A vague description of the business activity.
- Letting the 60 day name reservation expire before completing registration.
What to do after registration
- Get a Tax Identification Number (TIN) for the business, which most banks and clients will ask for.
- Open a business bank account in the registered name, and keep business and personal money separate.
- File annual returns with CAC every year. Business names that fail to file can attract penalties or be struck off.
- Keep simple records of sales, expenses and cash flow from day one. They make loans, grants and investment much easier to access.
- Put your registration to work: add your business name to your signage, invoices, social media pages and Google Business Profile.
Build a business that lasts
Registration is the start, not the finish. In the CEED IMPACT Entrepreneurship Foundations program you will test your idea, understand your customers, build a simple business model, price your products properly, keep records and learn how to formalise your business. Already running a business? Our Small Business Growth Clinic helps owners grow sales, manage cash flow and get investment ready.
Ready to grow? Apply for a CEED IMPACT program or chat with us on WhatsApp at 0913 900 9881.
This guide is for general information and reflects the CAC process at the time of writing. Requirements and fees can change, so confirm current details on the official CAC website before registering.