The verdict in three sentences
Formalizing through the CAC online portal is the fastest way to exist legally in Nigeria, with a common turnaround of 7 to 14 days. The real decision is not *whether to register* but business name vs private limited company (LTD), since that choice sets your liability and your B2B credibility. Once you hold your CAC certificate and TIN, you unlock the corporate bank account, legal invoicing and access to tenders.
CAC online portal: what changed by 2026
The Corporate Affairs Commission centralizes registration, and the Federal Inland Revenue Service issues the TIN (tax identification number). Filing is done online, and the certificate arrives within days for a clean file.
| Legal form | Indicative delay | Official fee (2026 order of magnitude) | Minimum capital | Key documents |
|---|---|---|---|---|
| Business name (sole) | 3-7 days | NGN 10,000 - 20,000 | None | ID, address, activity |
| Private LTD (small) | 7-14 days | NGN 20,000 - 35,000 | NGN 100,000 (nominal) | Memorandum, directors |
| LTD (larger capital) | 7-14 days | NGN 35,000+ | NGN 1,000,000+ | Memorandum, shareholders |
| Company Ltd by guarantee | 14-30 days | Higher, approval needed | N/A | Constitution, consent |
| PLC | 20-40 days | High | NGN 2,000,000+ | Full statutory pack |
Since the CAMA reforms, single-member private companies are allowed, lowering the barrier for solo founders.
Business name or LTD: how to choose
A business name is the simplest option, but you and your business share one legal identity. An LTD creates a separate legal person: liability limited to shares, and a stronger image with large accounts.
| Criterion | Business name | Private LTD |
|---|---|---|
| Liability | Unlimited (personal assets) | Limited to shares |
| B2B credibility | Medium | High |
| Taxation | Personal income tax | Companies income tax |
| Setup cost | NGN 10,000 - 20,000 | NGN 20,000 - 35,000 |
| Corporate account | Possible | Recommended, easy |
| Sale/transfer | Difficult | Shares transferable |
Mini case study
Emeka, a freelance web developer in Lagos, invoices NGN 4,000,000 per year to SMEs. While informal, he loses a NGN 2,000,000 contract with an NGO that requires a CAC certificate. He registers an LTD for around NGN 30,000 in official fees plus NGN 120,000 in support. The next month the NGO contract is signed: his roughly NGN 150,000 investment is repaid more than thirteen times by that single client.
Become a Kolonell referral partner
Many newly registered businesses then need a showcase website, an e-commerce store or an institutional site. The Kolonell referral partner program pays you for every project you refer.
| Referred project type | Sale commission | Recurring |
|---|---|---|
| Showcase site | 15% | + 5% on maintenance |
| E-commerce | 12% | + 5% recurring |
| Marketplace | 10% | On quote |
| Institutional | 8% | On quote |
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
A single showcase site worth 500,000 FCFA (about EUR 760) earns you 75,000 FCFA in immediate commission, plus recurring revenue on maintenance.
FAQ
How long does CAC registration take?
With the online portal, expect 7 to 14 days for a complete file. Delays almost always come from missing documents or name-availability rejections.
What is the real cost of an LTD?
Official fees are around NGN 20,000 to 35,000 in 2026 for a small company, but professional support (drafting, filing) often adds NGN 80,000 to 150,000.
Do I need large capital?
No. Small private companies can use a nominal share capital (often NGN 100,000), with no heavy lock-up requirement.
Is a business name enough for a freelancer?
Yes to start, but unlimited liability is a risk. As soon as you target B2B or public contracts, an LTD inspires more trust.
Can everything be done online?
Most of the filing is done online through the CAC portal, though you still upload IDs and consent forms, and name reservation must be approved first.
Let's talk about your project. Once registered, give your company a website that builds trust. 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.
