The verdict in three sentences
At the Corporate Affairs Commission (CAC), Nigeria's business registry, a limited company or business name can be registered largely online for 10,000-30,000 NGN in official fees (2026 order of magnitude), in about one to two weeks. Staying informal shuts you out of corporate tenders, business bank accounts and contracts with large firms, which all require an RC number and a TIN. Formalising early is not red tape, it is a revenue accelerator.
The real steps at CAC
CAC has moved most of the journey to its online portal. Here is the typical path for a digital business founder.
| Step | What you get | Typical time | 2026 cost (order of magnitude) |
|---|---|---|---|
| Name reservation | Unique business name | Same day to 48h | ~500-1,000 NGN |
| Business name (sole) | Registered BN | 1-3 days | ~10,000-20,000 NGN |
| Limited company (LTD) | RC number, incorporation | 1-2 weeks | ~20,000-30,000 NGN |
| TIN (FIRS) | Tax Identification Number | 1-3 days | Free |
| Corporate bank account | Business account | 2-5 days | Free (KYC) |
| SCUML (if required) | AML registration | Varies | Free |
A clean filing often lands under 30,000 NGN for a small company, without a lawyer.
Business Name, LTD or LLP?
The structure defines your liability and your commercial credibility.
| Structure | Minimum capital | Liability | Best for |
|---|---|---|---|
| Business Name (sole) | None | Unlimited (personal assets) | Testing, small freelance |
| LTD (private company) | Symbolic (from ~100,000 NGN authorised) | Limited to shares | Agency chasing pro contracts |
| LLP | None fixed | Limited | Partnerships, consultants |
| PLC | High | Limited | Fundraising at scale |
For a web agency signing with banks, NGOs or structured SMEs, an LTD is the minimum credible form.
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Mini case study
Chidi, a freelance developer in Lagos, invoiced 400,000 NGN/month informally. An SME declined a 3,000,000 NGN contract because he had no RC number. He registered an LTD in under two weeks for ~25,000 NGN. The contract was signed, he opened a corporate account, and now invoices with VAT his client can process. The formalisation paid for itself on a single order.
FAQ
How long does CAC registration really take? A complete filing typically clears in one to two weeks for an LTD, and a few days for a business name. Delays almost always come from missing KYC documents.
Is there a real minimum capital? For a private LTD the authorised share capital can start low (commonly around 100,000 NGN); what matters is consistency with your activity and future contracts.
Do I need a lawyer? Not for a simple small company: the CAC portal lets founders file directly, saving 50,000-150,000 NGN in professional fees.
What does the RC number actually unlock? A corporate bank account, compliant invoicing with a TIN, access to tenders, and the trust of enterprise clients who refuse to pay informal vendors.
Can I do everything online? Most of the CAC and FIRS journey is online, but budget for KYC verification steps at your bank to activate the corporate account.
Let's talk about your project. We support you from CAC registration to your website and mobile-money-ready payments. 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.
