The verdict in three sentences
The Corporate Affairs Commission (CAC) lets you register a business in Nigeria in 1 to 7 days, at a real cost of 10 000 to 50 000 NGN depending on whether you pick a business name or a limited company. For a web freelancer, a registered business name is enough to start, but a private limited company (Ltd) protects your personal assets once contracts pass a few million naira. Getting your TIN and CAC certificate unlocks merchant accounts, tenders and compliant invoicing.
The registration steps at the CAC
The CAC portal centralises company registration. You file one dossier and collect your identifiers without running between offices.
| Step | Document / action | Indicative 2026 cost | Timeline |
|---|---|---|---|
| Name reservation | Uniqueness check | 500 NGN | Few hours |
| Business name registration | Sole trader entity | 10 000–15 000 NGN | 1–3 days |
| Limited company incorporation | Certificate + memarts | 30 000–50 000 NGN | 2–7 days |
| TIN issuance | Federal tax identifier | Free | 1–3 days |
| Stamp duty | FIRS filing (company) | Varies with capital | 1–2 days |
| Company seal | Optional for Ltd | 3 000–8 000 NGN | 1–3 days |
For a business name, the certificate and TIN often suffice, keeping the total under 20 000 NGN. For a private limited company, budget the incorporation and stamp duty, for a realistic total of 40 000 to 50 000 NGN.
Business name or limited company: which to choose?
| Criterion | Business name | Private limited (Ltd) |
|---|---|---|
| Minimum share capital | None | 100 000 NGN (nominal) |
| Liability | Unlimited on personal assets | Limited to shares |
| Registration cost | 10 000–15 000 NGN | 40 000–50 000 NGN |
| Timeline | 1–3 days | 2–7 days |
| Corporate credibility | Medium | High |
| Accounting | Light | Full |
A developer billing 300 000 NGN a month to local SMEs stays comfortable as a business name. Once you sign with a bank, an NGO or an institution, the Ltd reassures and opens access to bigger budgets.
Become a Kolonell referral partner
Many newly formalised entrepreneurs then look for a website, an online store or a platform. That is where the Kolonell referral (apporteur d'affaires) programme comes in: you recommend a client, we build the project, you earn a commission. The 2026 rates are clear and paid fast.
| Referred project type | Sale commission | Recurring |
|---|---|---|
| Showcase website | 15 % | + 5 % on maintenance |
| E-commerce | 12 % | — |
| Marketplace | 10 % | — |
| Institutional | 8 % | — |
A simple showcase site at 500 000 NGN earns you 75 000 NGN, plus 5 % recurring on monthly maintenance. Three referrals a month turn your network into steady side income, without writing a single line of code.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Mini case study
Chidi, a web developer in Lagos, has freelanced for a year. He incorporates a limited company via the CAC: 45 000 NGN in fees, dossier done in 4 days. The next month, with his TIN, he lands a 1 200 000 NGN contract with a clinic. In parallel, he refers two merchants to Kolonell: an e-commerce build at 1 500 000 NGN (180 000 NGN at 12 %) and a showcase site at 500 000 NGN (75 000 NGN at 15 %). Total referred in one month: 255 000 NGN, nearly six times his registration cost.
FAQ
How much does business registration really cost in Nigeria in 2026?
Between 10 000 and 15 000 NGN for a business name, and 40 000 to 50 000 NGN for a limited company with incorporation and stamp duty. The TIN itself is free.
Is a TIN mandatory to invoice?
Yes. Without a TIN you cannot issue compliant invoices or open a proper merchant account. It is the first identifier to obtain.
How long does CAC registration take?
The portal clears most dossiers in 1 to 7 days. A business name is usually faster than a limited company.
Can I become a referral partner without being registered?
Yes, but to receive your commissions smoothly, having a TIN and a business account greatly simplifies payment and traceability.
Let's talk about your project. Whether you want to formalise your activity or earn commissions as a referral partner, we'll guide you. 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.
