The verdict in three sentences
In Nigeria, formalisation runs through the Corporate Affairs Commission (CAC), which now handles name reservation, RC number and registration largely online. For a solo founder, a business name registration is cheapest while a private limited company (Ltd) offers liability protection: budget roughly 30 000 - 50 000 NGN in official fees and 1 to 2 weeks. Preparing your documents (ID, address proof, memorandum) up front is what avoids the back-and-forth that costs weeks.
The CAC registration steps
The process is standardised online. A complete filing can produce an RC number within one to two weeks for simple structures.
| Step | What you get | Indicative 2026 cost | Timeline |
|---|---|---|---|
| Choose structure | Business name / Ltd / PLC | 0 NGN | Immediate |
| Name reservation | Approved name | ~500 - 1 000 NGN | 1 - 2 days |
| Draft documents | Memorandum & articles | 15 000 - 40 000 NGN | 1 - 2 days |
| CAC online filing | Application lodged | Included | 1 day |
| RC number issued | Registration number | Included | 1 - 2 weeks |
| Collect documents | Certificate pack | 0 NGN | 1 day |
Order of magnitude 2026: a business name costs about 10 000 - 20 000 NGN, a private limited company 30 000 - 50 000 NGN including legal drafting.
Choosing your structure: business name, Ltd or PLC
The structure drives liability, tax and credibility with clients and banks.
| Structure | Minimum capital | Liability | Best for |
|---|---|---|---|
| Business name | None | Unlimited on personal assets | Freelancer, referral agent |
| Private Ltd | 100 000 NGN authorised | Limited to shares | Solo protecting personal assets |
| Ltd (multi) | 100 000 NGN authorised | Limited to shares | Multiple partners |
| PLC | Higher | Limited | Fundraising, large accounts |
Regional comparison: Nigeria (CAC) vs Senegal (APIX)
| Criterion | Nigeria - CAC | Senegal - APIX |
|---|---|---|
| Portal | CAC online | APIX one-stop shop |
| Simple company cost | ~30 000 - 50 000 NGN | 60 000 - 100 000 FCFA |
| Timeline | 1 - 2 weeks | 48 h - 1 week |
| Tax ID | TIN (FIRS) | NINEA |
| Registry | RC number (CAC) | RCCM (OHADA) |
Mini case study
Chidi, a digital consultant in Lagos, wants to invoice his referral commissions cleanly. He registers a private limited company: drafting at 25 000 NGN, CAC fees included, total around 45 000 NGN. Within two weeks he collects his RC number and TIN. In the first month, being able to issue a proper company invoice unlocks a 600 000 NGN contract an SME had refused to pay to an unregistered supplier.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
What does a private limited company really cost in Nigeria in 2026?
Between 30 000 and 50 000 NGN all-in, including document drafting and CAC fees. A business name is cheaper (10 000 - 20 000 NGN) but offers less asset protection.
How long does registration take?
For a complete filing, one to two weeks for simple structures. Delays almost always come from missing documents or name conflicts.
Is a TIN required to invoice?
Yes. Without a TIN you cannot issue a recognised invoice or open a business account. Most SMEs and institutions refuse to pay a supplier with no RC number and TIN.
Can everything be done online?
Most of the CAC filing is online, but some verification and document collection may still be physical. Plan for it.
Do I need a lawyer?
For a limited company, drafting can go through an accredited agent or lawyer. For a modest structure, a registration agent is often enough.
Let's talk about your project. We help you formalise and put your Nigerian business online. 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.
