The verdict in three sentences
Formalising your company is not red tape, it is the key that unlocks merchant accounts, financing and large clients. In Nigeria, the Corporate Affairs Commission (CAC) now registers a limited company fully online in a few working days, with government fees and a name reservation. Without CAC registration and a TIN, you stay capped in the informal economy: no proper business bank account, no corporate clients, no deductible invoices.
What formalisation unlocks
Many founders delay registration out of fear of cost and paperwork. Yet every month spent informal closes concrete doors: an online seller with no registration cannot open a proper corporate bank or merchant account, and loses the B2B clients who demand a compliant invoice.
| What you unlock | Informal | Registered company |
|---|---|---|
| Corporate / merchant bank account | No | Yes (CAC + TIN required) |
| VAT invoice, deductible expenses | No | Yes |
| Government tenders / large clients | Excluded | Eligible |
| Bank / microfinance credit | Very limited | Admissible file |
| Commercial lease | Difficult | Standard |
| Supplier credibility (Net-30 terms) | Weak | Strong |
CAC costs and timelines in 2026
The CAC portal combines name reservation, registration and TIN issuance in one online flow. The amounts below are a 2026 order of magnitude; they vary with legal form and share capital declared.
| Item | Business Name | Limited company (Ltd) |
|---|---|---|
| Name reservation | Small fee | Small fee |
| CAC registration fee | Lower | Higher (tiered by capital) |
| TIN (tax ID) | Included | Included |
| Minimum share capital | Not required | Statutory minimum |
| Notary/attestation | Not needed | Sometimes for shares |
| Portal timeline | 1-3 days | 2-5 days |
| Realistic total | Modest | Moderate |
Two tax realities to know: a simplified/presumptive regime for small turnover, which keeps filings light, and the standard regime with VAT above the threshold. The simplified route is usually the best starting point for a trader or artisan.
Mini case study
Chidi runs a cosmetics shop in Lagos, selling the equivalent of 900,000 (local currency units) a month informally through a personal wallet. He hits limits: personal transfers are capped and two hotels refuse to order without an invoice. He registers a Ltd online through the CAC in a few days. Result: he opens a corporate merchant account, signs both hotels for a large monthly order, and deducts VAT on purchases. Registration pays for itself within days of new sales.
FAQ
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How long does registration really take?
Through the CAC online portal, expect 2 to 5 working days for a limited company with a complete file. Delays almost always come from a missing document (ID, proof of address, or unsigned particulars).
Do I need a lawyer for a limited company?
Not necessarily. Standard incorporations can be completed online without an attorney, which saves fees. Legal help remains advisable for multiple shareholders or high capital.
What minimum share capital is required?
A statutory minimum applies for a private limited company, and it does not all need to be paid up at incorporation depending on your structure.
Is CAC registration enough to open a merchant account?
You need the CAC certificate AND a TIN. Banks and payment providers require both plus the director's ID to activate a business account with higher limits.
Simplified or standard tax regime?
The simplified/presumptive regime suits small turnover with lighter filings, ideal to start. Above the VAT threshold you move to the standard regime with full accounting.
Let's talk about your project. We help you launch your website or online store the moment your registration comes through. 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.
