The verdict in three sentences
Staying informal blocks access to B2B contracts, a proper Mobile Money merchant account and financing. With Nigeria's CAC one-stop registration, a Business Name costs around NGN 10,000-20,000 and a Limited company roughly NGN 20,000-30,000, plus your TIN. Formalizing is not one more admin chore: it is the key that unlocks revenue.
The CAC steps in Nigeria
The CAC portal centralises name search, registration and, with the FIRS, your tax identification.
| Step | What you obtain | Timeline (order of magnitude) |
|---|---|---|
| Name search / reservation | Reserved name | < 24 h |
| Business Name / company filing | Registration | 1-3 days |
| Incorporation certificate | Legal entity | 1-5 days |
| TIN issuance (FIRS) | Tax ID | included/after |
| Statutory declarations | Tax regime | included |
| Bank / merchant MoMo account | Pro collection | after registration |
Usual documents: directors' ID, address proof, memorandum/articles (for a Ltd) and, in some cases, share-capital details. Most filings are now done online.
Nigeria (CAC) vs Senegal (APIX)
The one-stop principle exists on both sides, but costs and labels differ.
| Criterion | Nigeria — CAC | Senegal — APIX |
|---|---|---|
| Basic structure | Business Name / Ltd | Sole proprietor / SARL |
| Registration cost (order of magnitude) | NGN 10,000-20,000 (Business Name) | 25,000-100,000 FCFA (SARL) |
| Limited company cost | ~NGN 20,000-30,000 (Ltd) | per capital and fees |
| Tax ID | TIN | NINEA |
| Common timeline | 1-5 days | 1-3 days |
| Online registration | Yes (CAC portal) | Yes |
These are 2026 orders of magnitude excluding any adviser's fees; check the official schedules when you file.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Mini case study
Blessing sells natural cosmetics in Lagos via WhatsApp. Without a structure she can neither open a merchant account nor bid for a hotel's supply tender. She registers a Limited company with the CAC for about NGN 25,000 in 4 days. As a result she gets her TIN, opens a merchant account, and signs a first supply contract of 450,000 FCFA equivalent she could never have invoiced informally. Registration paid for itself on the first contract.
FAQ
How long does CAC registration really take? In practice, 1 to 5 days for a complete file. Delays almost always come from missing documents, not from the registry itself.
What budget should I plan for a company? An order of magnitude of NGN 10,000-30,000 depending on Business Name vs Ltd, excluding any adviser's fees. A Business Name is cheaper but offers less protection than a Ltd.
Why is the TIN so important? It is your tax identifier: without it, no compliant invoice, no professional merchant account, no access to formal markets. Almost everything else depends on it.
Does formalizing help secure financing? Yes: banks and lenders require a registered entity and a TIN. A registered business with clean records accesses micro-loans and grants that informal traders cannot.
What if I already sell online without a structure? You lose access to a professional merchant account and B2B contracts, and you take a tax risk. Registering first, then launching your e-commerce site, is the logical order.
Let's talk about your project. Once registered, we build your site and your Mobile Money collection. 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.
