The verdict in three sentences
As long as you invoice off the books, you hit a ceiling: big clients and agencies demand a proper invoice. Registering a structure — Nigeria (CAC), Kenya (eCitizen) or Francophone West Africa (APIX/CEPICI) — costs the equivalent of 10,000 to 100,000 FCFA and takes 24 to 72 h in 2026. This small step turns fragile informal income into a credible, banked, deductible activity.
Why registering changes everything
An unregistered referrer can neither issue a compliant invoice, open a business account, nor sign with a large company bound by its accounting rules. Registration unlocks four things: credibility, access to big tickets, legal security of commissions and tax deductibility of your costs (transport, phone, data).
| Without a structure | With a registered structure |
|---|---|
| Manual receipt, non-deductible | Compliant invoice (tax ID / registry no.) |
| SME and individual clients | Large companies and institutions |
| Informal mobile-money payment | Professional bank account |
| Contestable commission | Enforceable referral contract |
| No accounting | Costs deductible from profit |
For a referrer targeting institutional deals (an 800,000 FCFA commission on a 10,000,000 FCFA project), a proper invoice is not optional: it is the entry ticket.
Comparing statuses, costs and delays
The right status depends on your expected volume and country. Here are the 2026 benchmarks.
| Status | Country / portal | Registration cost | Delay | For whom |
|---|---|---|---|---|
| Business Name | Nigeria (CAC) | ~10,000 – 25,000 FCFA eq. | 24 – 48 h | Beginner, low volume |
| Sole proprietorship | Kenya (eCitizen) | ~15,000 – 40,000 FCFA eq. | 24 – 48 h | Regular referrer |
| Entreprenant (OHADA) | SN / CI | 10,000 – 25,000 FCFA | 24 – 48 h | Francophone beginner |
| Limited company (Ltd) | CAC / eCitizen | ~50,000 – 100,000 FCFA eq. | 48 – 72 h | High volume, partners |
A Business Name (CAC) or a sole proprietorship (eCitizen) is ideal to start: minimal cost, light formalities, simplified tax. You move up to a limited company as turnover grows.
Commission tax and invoicing
A referral commission is taxable income. Simplified regimes (small trader, presumptive tax) apply a flat rate rather than full corporate tax, which sharply reduces the burden below certain turnover thresholds.
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| Item | 2026 benchmark (order of magnitude) |
|---|---|
| Simplified/presumptive regime | Reduced flat rate |
| Turnover threshold to standard regime | ~25 – 50 million FCFA eq. |
| VAT (varies by country) | Often 7.5 – 18 % above threshold |
| Mandatory invoice fields | Tax ID, registry no., date, rate, VAT |
| Invoice retention | Typically ~6 – 10 years |
In practice, each commission collected is invoiced to the agency, paid by bank transfer or mobile money, then declared. Costs (travel, phone, data for demos) are deducted from taxable profit.
Mini case study
Chidi, a referrer in Lagos, invoiced the equivalent of 1,800,000 FCFA in commissions off the books over 8 months. A corporate client refuses to pay without a proper tax invoice. He registers a Business Name at the CAC for about 20,000 FCFA eq. in 48 h. Result: he signs the institutional deal (a 640,000 FCFA commission at 8 % on 8,000,000 FCFA), opens a business account and deducts 120,000 FCFA of annual costs. The 20,000 FCFA registration is repaid on the first invoice.
FAQ
How much does registration really cost in Nigeria? A CAC Business Name costs roughly the equivalent of 10,000 – 25,000 FCFA and is often issued in 24 to 48 h through the online portal.
And in Kenya via eCitizen? Count on the equivalent of 15,000 – 40,000 FCFA for a sole proprietorship, usually delivered within 24 to 48 h.
Must I charge VAT on my commissions? Only above the applicable threshold (often 7.5 – 18 % depending on country). Under early-stage simplified regimes you are generally exempt.
Can I stay a small trader for long? Yes, as long as turnover stays under the threshold (order of magnitude ~25 – 50 million FCFA eq.). Beyond that you switch to the standard regime.
What are the Francophone equivalents? In Senegal registration goes through APIX, in Côte d'Ivoire through CEPICI; delays and costs are comparable, often a few days and 10,000 – 60,000 FCFA.
Let's structure your referral activity. We point you to the right status to invoice your Kolonell commissions cleanly (15 % showcase + 5 %, 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.
