Registering a Business With CAC in Nigeria to Formalize Referral Work in Lagos in 2026

The verdict in three sentences

An unregistered referral partner hits a ceiling fast: no clean invoicing, no cost deductions, no credibility with serious agencies. In Lagos, a CAC business name costs around NGN 10,000, while a limited company (LTD) starts at NGN 30,000+ in 2026. Move up to an LTD only once your commissions grow or you need to protect personal assets.

Why formalize your referral activity

A referral partner connects a client to an agency and earns a commission on signing. While informal, three blockers appear: serious agencies demand a proper invoice (with a registered name and TIN), the tax office can reclassify repeated inflows, and large clients refuse to pay an individual. Registration unlocks the right to invoice, to deduct expenses (transport, phone, travel) and to sign enforceable referral agreements.

Business name or LTD: what to choose

To start solo, a business name is enough: quick setup, light bookkeeping, simplified tax. An LTD becomes worthwhile when yearly commissions reach the order of several million naira, when you take on partners, or when you want to ring-fence personal assets from the business.

The Kolonell referral partner program

Once registered, you can join Kolonell's referral (apporteur d'affaires) program and invoice commissions cleanly. The 2026 rates: showcase sites 15% + 5% recurring on maintenance, e-commerce 12%, marketplace 10%, institutional 8%. In practice, a Premium showcase site at 1,200,000 FCFA earns the partner 180,000 FCFA, plus 5% on the monthly maintenance plan. An e-commerce Growth project at 2,000,000 FCFA generates 240,000 FCFA in commission.

Mini case study

Ada, an HR consultant in Lagos, refers websites to her network of SME owners. In 2026 she registers a CAC business name (~NGN 10,000, a few days). In the first quarter she brings three projects: a Growth showcase (500,000 FCFA -> 75,000 FCFA commission), an e-commerce Starter (1,000,000 FCFA -> 120,000 FCFA) and a Premium showcase (1,200,000 FCFA -> 180,000 FCFA). Total: 375,000 FCFA in commissions invoiced properly, minus modest deductible costs. Her setup fee is recovered on the very first invoice.

FAQ

Must I be registered to earn as a referral partner? No for a one-off commission, but yes as soon as you want to invoice an agency repeatedly and deduct costs. Without a registered name and TIN, most agencies won't pay you beyond a deal or two.

What does registration really cost in Lagos in 2026? Expect an order of magnitude of NGN 10,000 for a CAC business name, and NGN 30,000+ for an LTD depending on filing and professional fees.

How long to get a TIN? A TIN is usually issued alongside CAC registration within a couple of business days once your file is complete.

Can I deduct travel and phone costs? Yes, once you keep proper books: transport, communications and prospecting travel are deductible expenses, provided you keep receipts.

When should I upgrade from a business name to an LTD? When annual commissions reach the order of several million naira, when you take on partners, or when you want to protect personal assets.

Let's talk about your project. Register your business, then become a Kolonell referral partner and invoice your commissions cleanly from the first deal. WhatsApp +221 77 596 93 33.