The verdict in three sentences
In Nigeria, the Corporate Affairs Commission (CAC) is the one-stop portal that centralises registration in a single online filing. In 2026, a web freelancer can register a business name in roughly 3 to 10 days for a modest NGN fee, or go for a limited company to reassure large accounts. This formalisation opens the door to public tenders, VAT invoicing and the institutional contracts Kolonell handles in its premium tier.
The steps on the CAC portal
The CAC portal covers name reservation, incorporation and links to the TIN via the FIRS. Typical 2026 path (figures in NGN, order of magnitude 2026).
| Step | What is produced | Indicative delay | Cost 2026 |
|---|---|---|---|
| Name reservation | Approved name | 1-2 days | ~NGN 500-1,000 |
| Register business name | Certificate | 2-5 days | ~NGN 10,000-20,000 |
| Incorporate limited company | Certificate + status report | 3-10 days | ~NGN 30,000-70,000 |
| TIN assignment (FIRS) | Tax identifier | 1-3 days | free |
| Post-incorporation filings | Compliance | Day 3-10 | variable |
These amounts are a 2026 order of magnitude; an accredited agent adds NGN 20,000 to NGN 60,000 depending on the company type.
Business name or limited company?
The right choice depends on your risk exposure and the clients you target. 2026 comparison.
| Criterion | Business name | Limited company |
|---|---|---|
| Liability | Unlimited | Limited to shares |
| Minimum capital | None | Stated share capital |
| VAT invoicing | If registered | Yes, when registered |
| Public tenders | Limited | Facilitated access |
| Registration cost 2026 | ~NGN 10,000-20,000 | ~NGN 30,000-70,000 |
| Timeline 2026 | 3-5 days | 3-10 days |
For a partner or freelancer starting out, a business name is fast and cheap; a limited company becomes relevant as soon as you handle e-commerce, marketplace and institutional tickets.
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Mini case study
Chidi, a freelance developer in Lagos, wants to sell and resell sites without a ceiling. He has already earned NGN 540,000 in commissions as a Kolonell partner, but his clients demand an invoice with a TIN. He registers a business name via the CAC: filed Monday, certificate and TIN by Wednesday, cost NGN 18,000. Three months later, chasing a tender that requires a limited company, he incorporates for ~NGN 60,000 and lands an institutional contract worth NGN 14,000,000, i.e. NGN 1,120,000 commission at 8 %.
FAQ
How much does CAC registration really cost in 2026? Expect around NGN 10,000-20,000 for a business name and NGN 30,000-70,000 for a limited company, with agent fees on top if you use one.
How long until I am operational? In 2026, 3 to 5 days for a business name if the filing is complete; a limited company often takes 3 to 10 days.
What is the TIN? The Tax Identification Number is your registration with the FIRS; it is required to invoice properly and to charge VAT where applicable.
Can I bid for public tenders with a business name? Access is more limited; many tenders require a limited company and up-to-date tax clearances. A limited company also reassures large private accounts.
Do I need an agent? Not mandatory for a business name. An accredited agent saves time and de-risks incorporation, for NGN 20,000 to NGN 60,000 in 2026.
Let's talk about your project. Register with the CAC and join the Kolonell partner network to sell sites with confidence. 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.
