The verdict in three sentences
Knowing the real costs and timeline avoids surprises when formalizing a digital business. The choice is between a Business Name (cheap, sole trader feel) and a Limited Company / Ltd (credibility, investor-ready), each with different obligations. The CAC now runs mostly online, so registration takes a few days when your documents are clean.
CAC fees and timeline 2026
The Corporate Affairs Commission handles registration online. Here are 2026 orders of magnitude.
| Step | Timeline | Indicative 2026 cost |
|---|---|---|
| Name reservation | Same day | NGN 500-1,000 |
| Business Name filing | 1-3 days | NGN 10,000-20,000 |
| Private Ltd filing | 2-7 days | NGN 30,000-80,000+ |
| TIN issuance | 1-3 days | Free |
| Stamp duty (Ltd) | With filing | Scales with capital |
| Bank account opening | 1-5 days | Free |
| Common total timeline | 3-7 working days | NGN 15,000-100,000 |
A Business Name is the fastest, cheapest route for a solo digital freelancer. A Limited Company costs more but is essential once you sign corporate clients or plan to raise money.
Business Name versus Limited Company
Structure drives credibility, liability and access to capital.
| Criterion | Business Name | Private Limited (Ltd) |
|---|---|---|
| Owners | Sole / partners | 1-50 shareholders |
| Bank credibility | Basic | Strong |
| Investor entry | Hard | Easy (share transfer) |
| Liability | Personal | Limited to shares |
| Corporate contracts | Often refused | Accepted |
| VAT | By revenue threshold | By revenue threshold |
| Accounting | Recommended | Mandatory |
For a freelancer chasing corporate contracts or funding, the Ltd unlocks doors a Business Name keeps shut. For a solo who wants to move fast and cheap, the Business Name works and can be upgraded later.
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Mini case study
Emeka builds websites in Lagos as a freelancer and bills around NGN 400,000/month. His corporate prospects require an invoice from a registered company with a TIN. He registers a Private Ltd with the CAC in 6 days for roughly NGN 70,000 total (filing, stamp duty, incidentals). The next month he lands two corporate contracts he could not sign without a company, worth NGN 1,100,000. Registration pays for itself in a single invoice and opens the enterprise segment.
FAQ
How long does CAC registration take? Usually 3-7 working days online when documents are complete. Delays almost always come from missing or mismatched paperwork.
Business Name or Limited Company? A Business Name (NGN 10,000-20,000) suits a cheap solo start; a Ltd (NGN 30,000-80,000+) is needed for corporate contracts and investors. Many freelancers start with a Business Name and upgrade.
When should I formalize a digital business? As soon as clients require an invoice with a TIN, or when steady revenue outgrows what the informal route can carry comfortably.
Do I need a TIN and VAT registration? A TIN is issued with registration and is free. VAT registration kicks in once you pass the revenue threshold; below it you can defer.
What obligations follow registration? A corporate bank account, basic accounting, annual returns and tax filings. A part-time accountant is enough at the start.
Let's talk about your project. We help you pick the structure and build the website that makes your company credible. 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.
