By 9jaDirectory Editorial Team | Updated: November 2025
If you are reading this, you have likely taken the bold step to start your own venture. Congratulations. But as every seasoned entrepreneur in Lagos, Abuja, or Kano will tell you, having a brilliant idea is only half the battle. The other half? Legitimacy.
Operating a business without registering it with the Corporate Affairs Commission (CAC) is like building a house on land you don’t own. You might get away with it for a while, but eventually, the cracks will show. You won’t be able to open a corporate bank account, you’ll lose out on government contracts, and big clients will hesitate to trust you with their money.
In my decade of consulting for Nigerian SMEs, I’ve seen businesses lose millions simply because they delayed this one crucial step. The good news? Business registration in Nigeria has changed. Gone are the days of waiting months for a file to move from one dusty desk to another in Abuja. The process is now largely digital, faster, and—if you know what you’re doing—surprisingly straightforward.
This comprehensive guide will walk you through everything you need to know about registering your business in 2025, from the new cost implications to the "DIY vs. Professional" decision.
1. Why You Can’t Afford to Wait (The Benefits)
Before we look at the how, let’s briefly talk about the why. Many small business owners ask, "Is it really necessary?" The answer is a resounding yes.
- Corporate Bank Account: You cannot open a business bank account in Nigeria without a CAC certificate and a Tax Identification Number (TIN). Using your personal account for business signals "amateur" to investors and tax authorities.
- Legal Protection: Registering a Limited Liability Company (Ltd) separates you from your business. If the business goes into debt, your personal assets—like your car or house—are generally safe.
- Trust & Credibility: Nigerians are wary. A registered business name builds instant trust. It shows you are traceable, accountable, and serious.
- Access to Loans & Grants: Federal Government grants (like the survival fund) and bank loans are exclusively for registered businesses.
2. Prerequisites: What You Need Before You Start
You don’t need a physical office to register a business anymore, but you do need your documentation in order. Having these ready before you log into the CAC portal will save you hours of frustration.
The "Must-Haves" Checklist
- Two Proposed Names: You need a primary choice and an alternative. For example, if "Lagos Logistics" is taken, you might try "Lagos Fast Logistics."
- Valid Identification: A scanned copy of your NIN (National Identity Number), International Passport, Voter’s Card, or Driver’s License. Note: The CAC is increasingly insisting on NIN for identity verification.
- Passport Photograph: A clear, white-background digital passport photo.
- Signature: A scanned copy of your signature on white paper.
- Address: This can be your residential address if you are a sole proprietor. You do not need a rented office space to start.
- Email & Phone Number: Use a dedicated email address for your business if possible.
Pro Tip: Ensure your date of birth on your ID matches exactly with what you input on the portal. A mismatch here is the #1 reason for query delays.
3. Choosing Your Structure: Business Name vs. Limited Company
This is the most critical decision you will make. In Nigeria, the two most common structures are Business Name and Private Limited Company (Ltd).
| Feature | Business Name (Enterprise) | Private Limited Company (Ltd) |
|---|---|---|
| Best For | Sole traders, freelancers, small shops. | Startups, growing SMEs, tech companies. |
| Legal Status | You and the business are the same entity. | The business is a separate legal entity. |
| Liability | Unlimited. You are personally liable for debts. | Limited. Your personal assets are protected. |
| Cost (2025) | Lower (approx. ₦20,000 - ₦30,000). | Higher (approx. ₦50,000+ depending on shares). |
| Directors | Sole Proprietor (You). | Minimum of 1 Director (formerly 2). |
| Upgradable? | Yes, can be upgraded to Ltd later. | N/A |
My Advice: If you are a freelancer or running a small local shop, start with a Business Name. It’s cheaper and requires less paperwork. If you plan to raise funding, bid for government contracts, or bring in partners, go straight for a Limited Company.
4. The Step-by-Step Registration Process (DIY Guide)
Can you do this yourself? Yes. The CAC’s Company Registration Portal (CRP) is designed for public use. However, it requires patience and attention to detail.
Figure 1: The 6-Step CAC Registration Process
Step 1: Public Name Search
Before paying a dime, check if your name is free.
- Visit the CAC Public Search.
- Type your desired name.
- If it returns "Not Found," that’s good news—it’s likely available.
Step 2: Create Your Account
Go to the CAC Pre-Incorporation Portal. Click "Register" and enter your details. You will need your NIN here. Once verified, you can log in.
Step 3: Name Reservation
You don’t register immediately; you reserve the name first.
- Select "New Name Reservation."
- Fill in your business type (e.g., Business Name).
- Enter your two name options.
- Pay the filing fee (approx. ₦500 - ₦1,000).
- Wait 24-48 hours. You will receive an approval email with an "Availability Code."
Step 4: Registration (CAC 1.1)
Once your name is reserved:
- Click "Start Registration" on your dashboard.
- Input the Availability Code.
- Fill the Forms: Enter your address, nature of business (be specific!), and proprietor details.
- Upload Documents: Upload your ID, photo, and signature in PDF/JPEG format. ensure they are under the size limit (usually 200KB-500KB).
- Pay the Registration Fee: This varies by business type (see section below).
Step 5: Download Certificates
Upon approval (typically 3-7 days), your dashboard status will change to "Registered." You can then download your:
- Certificate of Incorporation
- Status Report (replacing the old CAC forms)
- Memorandum & Articles of Association (for Ltd companies)
Need Help? If this sounds overwhelming, you can hire a corporate lawyer or a business consultant from our directory to handle it for you.
5. Cost Breakdown (2025 Estimates)
Costs have adjusted in 2025 due to economic changes. Here is what you should budget. Note that "Official Fees" are what you pay if you do it yourself, while "Professional Fees" include the service charge of a lawyer or accredited agent.
| Item | Official CAC Fee (Approx.) | Professional Fee (Avg.) |
|---|---|---|
| Name Reservation | ₦500 - ₦1,000 | ₦2,000 - ₦5,000 |
| Business Name Reg | ₦10,000 - ₦15,000 | ₦25,000 - ₦40,000 |
| Ltd Company (1M Shares) | ₦15,000 + Stamp Duty | ₦60,000 - ₦100,000 |
| NGO / Incorporated Trustee | ₦35,000 | ₦120,000 - ₦200,000 |
Note: Stamp duty is paid to the FIRS and is calculated based on share capital (usually 0.75%).
6. Post-Incorporation Checklist: You’re Not Done Yet
Getting your certificate is a milestone, but it’s not the finish line. To be fully operational, you must tackle these three tasks immediately:
1. Get Your TIN (Tax Identification Number)
For Limited Companies, your TIN is now often generated automatically and printed on your CAC certificate. For Business Names, you may need to visit the nearest FIRS office or generate it online via the JTB (Joint Tax Board) website.
2. Open a Corporate Bank Account
Take your Certificate, Status Report, TIN, and ID to any major Nigerian bank. Do not delay this. Mixing personal and business funds is a recipe for accounting disaster. Check our Finance category to find banks near you.
3. SCUML Certificate (For Some Businesses)
If you are in "Designated Non-Financial Institutions" (DNFIs) like Real Estate, Car Dealing, Jewelry, or Consulting, you need a SCUML certificate from the EFCC to open a bank account. This is free but requires a separate application.
7. Common Mistakes to Avoid
- Vague Business Nature: Don’t just write "General Merchandise." Be specific, e.g., "Sales of Computer Accessories and Repair Services."
- Ignoring Annual Returns: This is the silent killer. You must file annual returns with the CAC every year (starting the year after registration). Failure to do so leads to hefty penalties and eventually, your company being "Delisted" (removed) from the register.
- Losing Your Login Details: If you register yourself, guard your CRP username and password with your life. Retrieving them can be a bureaucratic nightmare.
Conclusion
Business registration in Nigeria is the foundation of a successful enterprise. It transforms your "hustle" into a recognized entity capable of growth, borrowing, and building a legacy. While the process has its quirks, the digital era has made it more accessible than ever.
Whether you choose to navigate the portal yourself or engage a professional, the most important thing is to start. Don't let bureaucracy paralyze your dreams.
Ready to grow? Once registered, your next step is visibility. List your business on 9jaDirectory for free today and get discovered by customers across Nigeria.
