Registering a Business With the CAC in Nigeria: Guide and Cost 2026

The verdict in three sentences

Formalizing your activity means being able to invoice, open a corporate account and gain credibility with clients and the agency. In Nigeria, the CAC handles registration online: a business name or a Limited company depending on whether you are solo or with partners, for ₦10,000 to ₦60,000 and a 24-72 hour timeline. The resulting TIN unlocks invoicing, the corporate bank account and VAT registration.

Which structure for a referral partner or freelancer?

A referral partner or digital freelancer needs no heavy structure. The choice is mainly between a business name, a private Limited company (Ltd) and a partnership.

For most partners, a business name is the cheapest start, while a private Ltd adds limited liability and a professional image once volume grows.

Steps, costs and timelines via the CAC

The CAC (Corporate Affairs Commission) lets you register online, bundling name reservation, incorporation and the TIN. Here is the typical 2026 path.

The TIN is the key: without it, no compliant invoice and no corporate account. VAT (7.5% in Nigeria) applies above turnover thresholds; below them, small-company relief can apply.

Formalizing to maximize your referral commissions

A clean structure smooths your collaboration with Kolonell: you invoice your referral commissions, get paid by transfer to a corporate account, and inspire trust in the clients you introduce. Reminder of the scale: 15% + 5% recurring on sites, 12% on e-commerce, 10% on marketplaces, 8% on enterprise, with no cap. Once your commissions exceed a few hundred thousand naira a month, registering with the CAC pays off for accounting clarity and access to credit.

Mini case study

Musa, a partner in Abuja, collects ₦540,000 in commissions a month. He registers a private Ltd via the CAC: filing at ₦60,000, TIN issued in 3 days, MoMo business account opened right after.

Total formalization cost: ~₦65,000 once. Benefit: he invoices cleanly, deducts expenses (transport, phone), and accesses a micro-loan to fund a prospecting motorbike. The return on that ₦65,000 investment is recovered in under a week of activity.

FAQ

How much does CAC registration really cost?

Budget ₦10,000-₦25,000 for a business name and ₦30,000-₦60,000 for a private Ltd in 2026, name reservation and incorporation included. The TIN itself is free.

How long until I'm operational?

The CAC online portal often issues the certificate in 1-3 days and the TIN in 24-72 hours. In practice, a Ltd is functional within a week.

Do I need capital for a Ltd?

The standard authorized share capital is ₦100,000, but it represents your own equity, not a lost fee. A business name requires no capital.

Must I charge VAT?

Not always. VAT of 7.5% applies above turnover thresholds; below them, small-company relief may apply. Confirm your situation with the tax authority.

Can I start as a partner without a company?

Yes, to test the activity. But once income becomes regular, registering with the CAC secures invoicing, a corporate account and access to funding programs.

Let's talk about your project. Formalize your activity and join the referral program to invoice your commissions cleanly. WhatsApp +221 77 596 93 33.