Business Registration in Nigeria: Costs and Procedures

Overview

Registering a business in Nigeria involves several steps and costs, primarily managed through the Corporate Affairs Commission (CAC). The costs depend on the type of business structure, such as a Business Name, Private Limited Company (Ltd), or Public Limited Company (PLC). Below is a detailed breakdown of the costs and requirements as of 2025, based on the most recent information available.

Types of Business Structures and Costs

1. Business Name Registration

This is suitable for sole proprietorships or partnerships.

• Name Search and Reservation: ₦500 (non-refunded even if the name is not approved).
• Registration Fee: � PIPE₦10,000 (minimum fee for a Business Name).
• Additional Costs:
  • Stamp duty: Varies based on the documents submitted.
  • Optional costs for certified true copies (e.g., ₦3,000–₦5,000 for additional documents).
• Total Estimated Cost: ₦10,500–₦15,000 (excluding professional fees if using an agent).

2. Private Limited Company (Ltd)

This is the most common structure for small to medium-sized businesses.

• Name Search and Reservation: ₦500.
• Registration Fee:
  • For a company with a share capital of ₦1,000,000 or less: ₦10,000.
  • For every additional ₦1,000,000 share capital: ₦5,000 (up to a maximum of ₦500,000,000 share capital).
  • Example: For a ₦5,000,000 share capital, the fee is ₦10,000 + (₦5,000 × 4) = ₦30,000.
• Stamp Duty: Typically 0.75% of the share capital (e.g., ₦7,500 for ₦1,000,000 share capital).
• Filing Fees for Forms: Approximately ₦2,000–₦5,000 for required forms (e.g., CAC 1.1, Memorandum, and Articles of Association).
• Total Estimated Cost: ₦20,000–₦50,000 (depending on share capital and additional services).

3. Public Limited Company (PLC)

Suitable for larger businesses intending to list on the stock exchange.

• Name Search and Reservation: ₦500.
• Registration Fee:
  • For a share capital of ₦1,000,000 or less: ₦20,000.
  • For every additional ₦1,000,000 share capital: ₦10,000.
• Stamp Duty: 0.75% of the share capital.
• Filing Fees: ₦5,000–₦10,000 for additional forms and certifications.
• Total Estimated Cost: ₦30,000–₦100,000+ (depending on share capital).

4. Other Business Structures

• Incorporated Trustees (e.g., NGOs, religious organizations):
  • Name Search: ₦500.
  • Registration Fee: ₦30,000 (flat rate).
  • Additional Costs: ₦5,000–₦10,000 for filing and certifications.
  • Total Estimated Cost: ₦35,000–₦45,000.
• Limited Liability Partnership (LLP) or Limited Partnership (LP):
  • Costs are similar to Private Limited Company but may include additional legal fees for partnership agreements (₦20,000–₦60,000).

Additional Considerations

• Professional Fees: If you engage a lawyer or accredited CAC agent, fees range from ₦10,000–₦50,000 depending on complexity.
• Post-Registration Costs:
  • Tax Identification Number (TIN): Free, but may require professional assistance (₦5,000–₦15,000).
  • Annual Returns: ₦3,000–₦5,000 annually, depending on the business type.
  • Other licenses/permits (e.g., NAFDAC, SON): ₦50,000–₦500,000, depending on the industry.
• Online Registration: The CAC portal (services.cac.gov.ng) allows online registration, which may reduce costs by eliminating agent fees. However, it requires a digital signature and some technical know-how.
• Processing Time: Typically 5–10 business days for name reservation and 7–14 days for full registration, assuming no delays.

Steps for Business Registration

1. Name Search and Reservation: Submit two proposed names via the CAC portal. Approval takes 1–5 days.
2. Document Preparation: Prepare required documents (e.g., Memorandum and Articles of Association for companies, or partnership agreements for LLPs).
3. Submission: Upload documents and pay fees via the CAC portal or through an accredited agent.
4. Verification and Approval: CAC reviews documents and issues a Certificate of Registration.
5. Post-Registration: Obtain TIN, open a corporate bank account, and apply for industry-specific permits if needed.

Notes

• Costs are based on official CAC fees as of the latest updates (2023–2024). Always check the CAC website for real-time fee changes.
• Engaging a professional (e.g., lawyer, accountant) can streamline the process but increases costs.
• Some businesses may require additional compliance, such as registration with the Federal Inland Revenue Service (FIRS) or industry regulators.

For the latest updates, visit the CAC website (services.cac.gov.ng) or consult a professional for tailored advice.