The verdict in three sentences
In Nigeria, the CAC online portal registers a Business Name quickly and a Limited (Ltd) company usually within 1 to 2 weeks once your file is complete. The decision that matters is not the fee but the legal form: a Business Name to start fast, a Limited company as soon as you sign contracts and open a corporate account. Until you are registered, you lose big clients, your TIN, the corporate bank account and higher mobile money merchant tiers.
Why formalizing changes everything
An informal business hits a ceiling: no recognized invoice, no bank account in the company's name, no access to public tenders or large accounts that require registration and a TIN. Formalizing also unlocks the mobile money merchant account with limits far above a personal wallet.
| What registration unlocks | Informal | Registered (TIN + CAC) |
|---|---|---|
| Invoice accepted by large clients | No | Yes |
| Corporate bank account | No | Yes |
| Mobile money merchant tier | Limited | High limits |
| Access to public tenders | No | Yes |
| Bank credit / financing | Very hard | Possible |
| B2B contracts and RFPs | Rare | Standard |
Steps, cost and timeline at CAC
Registration runs through the Corporate Affairs Commission (CAC) online portal, covering name search, incorporation and post-registration. 2026 order-of-magnitude figures below (confirm by form and share capital).
| Step | Business Name | Limited company (Ltd) |
|---|---|---|
| Name reservation | Included | Included |
| Registration filing | Lower fee | Higher fee |
| Tax ID (TIN) | Free | Free |
| Minimum share capital | None | Modest, stated |
| Statutory documents | Basic form | MEMART + forms |
| Typical timeline | A few days | 1-2 weeks |
| Estimated setup cost | 15 000-25 000 NGN | 25 000-40 000 NGN + fees |
Documents to prepare: valid ID of the owner(s)/director(s), proof of address, the desired name, and for a Limited company the incorporation documents and capital allocation.
Nigeria (CAC) vs Senegal (APIX) comparison
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| Criterion | Nigeria — CAC | Senegal — APIX |
|---|---|---|
| One-stop channel | CAC online portal | BCE / one-stop shop |
| Light form | Business Name | Sole proprietorship |
| Company form | Limited (Ltd) | SARL (capital 100 000 FCFA) |
| Common timeline | 1-2 weeks | 48-72 h |
| Tax identifier | TIN | NINEA |
| Company cost (order of magnitude) | 25 000-40 000 NGN + fees | 60 000-150 000 FCFA |
Mini case study
Chidi, a communications consultant in Lagos, invoiced informally and was turned down for a 3 000 000 NGN contract with an NGO that required a TIN. He registers a Business Name in a few days, obtains his TIN, opens a corporate account and a mobile money merchant account. The 3 000 000 NGN contract is signed — a return of roughly 150 times his registration cost in the first month. Six months later, with three large clients, he converts to a Limited company to protect himself and access credit.
FAQ
How much does CAC registration really cost in 2026? A Business Name is an order of magnitude of 15 000-25 000 NGN all-in. A Limited company runs 25 000-40 000 NGN plus professional fees, depending on capital and whether you use an agent.
How long until I'm registered? With a complete file on the CAC portal, a Business Name takes a few days and a Limited company usually 1 to 2 weeks. Delays almost always come from a rejected name or missing documents.
Business Name or Limited company? A Business Name is faster and cheaper but offers no liability separation. A Limited company separates your personal assets and reassures banks and large accounts — choose it once turnover reaches a few million NGN.
Is the TIN paid? No, the TIN is issued free of charge alongside registration. It is the tax identifier you need to invoice legally and to open a corporate account.
Do I need a lawyer for a Limited company? Not always: simple companies can be filed directly on the CAC portal with standard documents, which sharply reduces setup cost. Use a professional only for complex shareholding.
Let's talk about your project. We help you register fast and wire up invoicing, a merchant account and a professional website right after. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
