Business Insights

How to Register Your Business in Nigeria: A step by step guide

Business registration is an essential step for entrepreneurs who want to conduct business legally and enjoy access to government contracts, business loans, and international partnerships. Register Your business to be on the right side of the Law and to run a good business. Business registration in Nigeria is governed by the Corporate Affairs Commission (CAC), and registration has been more effective and internet-based within the last few years.

Why Register Your Business

First, registering your business gives the Government relevant information and data on how to provide the right infrastructure and services for businesses and entrepreneurs. This in economic terms is known as relevant economic data and macro-economic targeting. Without such data, government policies and actions will be coterminous to the government throwing punches in the dark. Do not forget, also, the tax benefits to the government, as your business needs to pay tax to keep the government running, since your business is benefiting from various government services in the Community, State and Country.

Secondly, as briefly mentioned above, business registration gives you a number of benefits including access to government services and programs, access to more banking services and products, access to legal protection, sustainability of your business even after your retire or die, professional standing, growth and wealth. You cannot grow your wealth until your separate your business from yourself. This is a global and proven fact.

Registering your business keeps you on the right side of the Law. It is important to note that on Monday, May 7th, 2024, the Central Bank of Nigeria (CBN) mandated all Point of Sale Operators (POS) in Nigeria to register their businesses with the Corporate Affairs Commission (CAC). The Registrar General and Chief Executive Officer of the CAC, Hussaini Magaji, (SAN), clarified that this directive was issued “in accordance with legal requirements”. Magaji further stated that this action is backed by Section 863, Subsection 1 of the Companies and Allied Matters Act, CAMA 2020, as well as the 2013 CBN guidelines concerning agent banking.

Furthermore, on April 29, 2025, was a six week ultimatum and directive from the Corporate Affairs Commission (CAC) requiring all business owners to register their businesses with the Commission by June 29th, 2025 to comply with the registration requirements of the Companies and Allied Matters Act (CAMA), 2020. In a circular issued by the Corporate Affairs Commission (CAC), it said that after the ultimatum,  it would take necessary action against erring offenders who fail to comply. ”This includes legal action, against any Company, Limited Liability Partnership, Limited Partnership or Business Name found operating without registration or under a name different from its registered identity. “It is a criminal offence under Section 863 of CAMA to carry on business in Nigeria without proper registration, or to use a name or acronym other than that under which the entity is legally registered,” 

Steps to business registration in Nigeria.

In registering your business, you have two choices, namely: Embark on the registration yourself or use a consultant to do it for you. Each of these has its ups and downs. Registering your business by yourself has the advantage of being cheaper as you will not be paying the consultant’s fees. However, you are bound to make mistakes, add the wrong objects, file your documents wrongly and in the end, the entire process will cost you more. For this reason, most entrepreneurs and business owners use consultants and saddle them with the job of doing the business registration at the CAC.

If you choose to use a business consultant or business broker to register your business, you will pay a little more to cover their expenses but you will get professional help with no problems. They are in a better position to help you draft your Memorandum and Articles of Association otherwise known as MEMART, document your business properly and make the right filings with the CAC, so you end up getting your business registration faster and, cheaper. Some known companies that register businesses with the CAC include Dobizness B2B Services Limited, Becky Rose Consult.

The following is a step-by-step guide on how to register your business in Nigeria:

  1. Decide on the objectives or what type of things, activities or ventures that your business will be doing or will be engaged in. This is known as the memorandum or objects of the business. Once registered, your business cannot embark on any activity or venture outside of what is in the memorandum, otherwise, it will be running against the law. These activities will all be clearly stated in the documents that you will later send to the Corporate Affairs Commission (CAC) for the registration of your business

2. Choose a Business Structure
The next step is to determine the legal structure of your company. The most common ones in Nigeria are:

  • Business Name (Sole Proprietorship or Partnership): Suitable for small businesses.
  • Private Limited Company (Ltd): Suitable for medium and large companies.
  • Public Limited Company (PLC): For those businesses intending to go public or be registered on the stock eschange.
  • Incorporated Trustees (NGOs, Religious, and Charitable Organizations).
  • For the majority of startups and entrepreneurs, the choice between Business Name or Private Limited Company is desirable.

3. Choose a Name for your business and conduct a Name Search and Reservation with the CAC
Visit the official CAC website: https://www.cac.gov.ng and click on the Public Search option and look up the availability of your proposed business name. If it is available, proceed to Reserve the Name through the online platform. The law does not allow any two businesses to have same names or similar names that will be deceptive to members of the public or that infringes on an existing trade mark. Note also that you cannot use such names as Chamber of Commerce, Federal, Regional, State, Government, Cooperative, Group, Holding, Municipal, Chartered, or any name that suggests your business enjoys patronage of the Federal, State or Local Governments. Your business name cannot also contain the words Bank or Insurance company without the express written approval of the Central Bank of Nigeria. Currently the CAC charges a fee of ₦500 for name reservation and such name reservations expires within 60 days

4. Decide on who are the promoters, shareholders and directors of the company. You also need to decide on the percentage of share holding that each person has and allocate such number of shares to them, accordingly.

5. Decide on what will be the registered address of your business. This is needed by the CAC and will be shown on your approved business documents

6. Decide on whether you want to register it yourself with the CAC or you want to use a consultant.

7. Complete the Pre-registration Form (CAC-1.1), if you are doing the registration yourself, otherwise, your consultant will do this and the subsequent things for you
After reservation of name, fill out the pre-registration form, including necessary details like:

  • Business name
  • Nature of business
  • Business address
  • Proprietors/Directors details (valid ID, passport photograph, contact details)
  • Share capital details (for a company)
  • This is done online through the use of the CAC Company Registration Portal (CRP): https://pre.cac.gov.ng

8. Pay Filing and Stamp Duty Fee
After completing the form, you will be prompted to pay the relevant fees. Charges vary depending on the type of business:

  • Business Name Registration: ₦10,000 (approximate)
  • Private Company Registration: ₦20,000 and above (depending on share capital)
  • Payments can be made online via remita or through accredited banks.

9. Upload Required Documents
Once payment is made, upload the scanned copies of the following documents:

  • For Business Name:
    Approved name reservation
  • Completed application form
  • Valid ID of the proprietor(s)
  • For Limited Liability Company:
    Memorandum and Articles of Association (MEMART)
  • Form CAC 1.1 (Application for Registration)
  • Director and shareholder IDs
  • Evidence of payment
  • Passport size photographs
  • Statement of share capital
Buy, Sell and Franchise Your business with Buy My Business Brokers in Nigeria - BuyMyBusiness.Com.Ng

10. Collection and Incorporation of Certificates
Upon submission, the CAC will scrutinize the documents. In the event that all is well, your business shall be approved, and you will receive:

  • Certificate of Registration/Incorporation
  • Approved Memorandum and Articles of Association
  • Status Report on your company
  • Certified True Copies (CTC) of your application documents
  • You are able to view these documents directly from your dashboard on the CAC portal.

11. Register your business with other Relevant Authorities
Dependent on the nature of business and location of your business, you will also be expected to:

  • Register for Tax Identification Number (TIN) with Federal Inland Revenue Service (FIRS)
  • Register with SCUML where your business needs a SCUML certificate
  • Register for Value Added Tax (VAT)
  • Open a bank account for the company
  • Obtain the relevant licenses or permits from regulatory bodies

Conclusion
It is fairly straightforward to register a business in Nigeria using the online registration platform provided by CAC. By following these steps, business owners are able to legalize their operations, enhance credibility, and create avenues for business development opportunities. For complex registrations or matters of regulations, it is advisable to consult a legal or business expert.

Leave a Reply