The verdict in three sentences
Without a CAC registration and a TIN, you cannot open a professional merchant account or invoice a large company or NGO cleanly. Registering with the Corporate Affairs Commission (CAC) is therefore the first building block of any serious digital project, before you even code the store. In 2026, expect a rough 1 to 7 days and 10,000 to 60,000 NGN depending on structure — a trivial cost against the revenue it unlocks.
Business name or Limited company: which to choose
Your legal form drives your liability, taxation and credibility with B2B clients. A business name is simplest but merges personal and business assets; a limited company (LTD) protects your assets and reassures large accounts.
| Criterion (2026 order of magnitude) | Business Name | Limited (LTD) |
|---|---|---|
| CAC registration cost | 10,000-20,000 NGN | 30,000-60,000 NGN |
| Minimum share capital | none | 100,000 NGN (nominal) |
| Number of members | 1 | 1 to 50 |
| Liability | unlimited | limited to shares |
| Online timeline | 1-3 days | 2-7 days |
| B2B / tender credibility | low | strong |
For a freelancer targeting institutional clients or an e-commerce store, the LTD is the best 2026 compromise: asset protection and a professional image for a modest premium.
The formalities and their real costs
The CAC online portal groups the steps, but several obligations still need planning after incorporation.
| Step | Estimated 2026 cost | Timeline |
|---|---|---|
| CAC name reservation | 500-1,000 NGN | same day-2 days |
| Registration certificate | 10,000-60,000 NGN | 1-7 days |
| TIN (Tax ID) | free | 1-5 days |
| Notarised documents (if any) | 5,000-20,000 NGN | 1-3 days |
| Merchant account (PSP) onboarding | 0 NGN | 2-7 days |
| Pension / statutory filings (if staff) | based on payroll | monthly |
Once the TIN and CAC certificate are in hand, opening a merchant account with a local PSP becomes immediate — that is what turns a showcase page into a real store that collects payments.
Become a Kolonell referral partner
Many freshly registered entrepreneurs need a site or a store. If you refer them to Kolonell, our referral program pays you: 15% on a showcase sale + 5% recurring on maintenance, 12% on e-commerce, 10% on marketplaces and 8% on institutional projects. A single e-commerce project of 2,000,000 FCFA (approx. EUR 3,050) earns you 240,000 FCFA in commission.
Mini case study
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Chidi, a digital marketing consultant in Lagos, invoiced informally and kept losing NGO tenders for lack of a CAC certificate. He registers an LTD: about 45,000 NGN in fees and 4 working days. The following month he signs a contract worth 2,000,000 NGN with an NGO that required a TIN. Return on investment: over 40x on the first contract alone.
FAQ
How much does registering an LTD in Nigeria really cost in 2026?
Expect a rough 30,000 to 60,000 NGN in CAC fees, plus 5,000-20,000 NGN for notarised documents where required. The total usually stays under 80,000 NGN.
Can everything be done online?
Yes, the CAC portal supports paperless registration with a 1 to 7 day timeline. Certain documents (signed forms, proof of address) must be uploaded.
Must the 100,000 NGN share capital be deposited?
For a small LTD the minimum share capital is nominal and often not fully paid up front; you do not need to lock a large sum to start.
Do I need a CAC certificate to open a merchant account?
Yes. PSPs require the TIN and CAC certificate for a professional merchant account, letting you collect in the company's name and handle VAT correctly.
How soon can I invoice a client?
As soon as you hold the TIN (1-5 days), you can issue compliant invoices bearing your TIN and CAC number — a must for B2B and institutional clients.
Let's talk about your project. Once registered, we turn your company into a store or site that collects from day one. 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.
