The verdict in three sentences
Incorporating turns a referral agent into a credible partner: proper invoices, a merchant mobile money account, access to tenders. In Nigeria, the CAC (Corporate Affairs Commission) allows registration in a few days for a modest fee; in Senegal, APIX delivers in 48 to 72 h for 25,000 to 100,000 FCFA equivalent. To start solo, a sole proprietorship (business name) is enough; a limited company becomes useful once you take partners or target big contracts.
Sole proprietorship or limited company?
The choice depends on volume, need for protection and partners.
| Criterion | Sole proprietorship / business name | Limited company (Ltd / SARL) |
|---|---|---|
| Registration cost (2026 order) | ~25,000-40,000 FCFA equiv. | ~60,000-100,000 FCFA equiv. |
| Registration time | 2-3 days | 2-3 days |
| Minimum capital | none | symbolic |
| Liability | unlimited (personal assets) | limited to contributions |
| Partners | 1 only | 1 to 50 |
| Common tax regime | presumptive / income tax | corporate tax |
For a solo beginner agent, the sole proprietorship / business name is the fastest and cheapest route.
Documents and steps
Registration is largely digital through the one-stop portal (CAC in Nigeria, APIX in Senegal).
| Step | Item required | Time |
|---|---|---|
| 1 | Valid ID or passport | immediate |
| 2 | Proof of address / registered office | immediate |
| 3 | File the application on the portal | 30-60 min |
| 4 | Company/business name registration | 2-3 days |
| 5 | Tax identification number (TIN / NINEA) | included |
| 6 | Merchant account / mobile money | 1-3 days |
The tax ID is the key: without it, no proper invoicing and no professional merchant account.
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Mini case study
Chidi, a referral agent in Lagos, registers a business name. Total cost: ~35,000 FCFA equivalent, time 3 days. Once he gets his TIN, he invoices his Kolonell commissions properly and opens a merchant mobile money account. Result: he signs his first institutional contract (8,000,000 FCFA, commission 640,000 FCFA at 8%) because the client required a registered vendor.
FAQ
Do I really need to incorporate to be a referral agent? Not required to start, but essential to invoice big clients and access tenders. The tax ID unlocks the merchant mobile money account.
How much does registration cost in 2026? Roughly 25,000-40,000 FCFA equivalent for a business name, 60,000-100,000 FCFA for a limited company. These are orders of magnitude, excluding advisory fees.
How long does it take? Registration and tax ID are generally delivered within 2 to 3 days via the online portal.
What tax obligations follow? A business name often falls under a presumptive or income-tax regime; a limited company under corporate tax. An accountant or the registry guides you.
Can I collect my commissions via mobile money? Yes: with a tax ID, you open a merchant account and receive commissions cleanly.
Incorporate, then join the Kolonell referral program. Invoice properly and earn 15% on showcase (+5% recurring), 12% e-commerce, 10% marketplace, 8% institutional. 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.
