The verdict in three sentences
In Nigeria, the CAC online portal centralizes company registration and issues your registration certificate typically within 1 to 7 working days. For a solo digital professional, a Private Limited Company (Ltd) offers the best balance between personal-asset protection and credibility with corporate clients. Expect a 2026 order-of-magnitude of NGN 10,000 to NGN 60,000 in fees depending on whether you register a Business Name or a full company.
Legal structures compared
Your structure determines your liability, your tax regime and your ability to bid for contracts. Here are the 2026 benchmarks for a web activity (websites, e-commerce, digital marketing).
| Legal structure | Minimum capital | Registration cost (est.) | CAC timeline | Liability |
|---|---|---|---|---|
| Business Name | None | NGN 10,000 - 15,000 | 1 - 3 days | Unlimited (personal assets) |
| Private Ltd (1 owner) | NGN 100,000 (nominal) | NGN 30,000 - 60,000 | 3 - 7 days | Limited to shares |
| Private Ltd (2+ owners) | NGN 100,000 (nominal) | NGN 40,000 - 70,000 | 3 - 7 days | Limited to shares |
| Company Ltd by Guarantee | None | NGN 60,000 - 120,000 | 7 - 21 days | Limited by guarantee |
| Incorporated Trustees | None | NGN 40,000 - 80,000 | 14 - 30 days | Separate legal entity |
Under the Companies and Allied Matters Act (CAMA), a single person can now form a Private Ltd, which suits solo founders. The share capital is nominal and does not have to be paid up in full at registration.
Extra costs and tax duties
Beyond registration fees, budget for the recurring charges that apply from your first year of operation.
| Item | Amount / rate 2026 (est.) | Frequency |
|---|---|---|
| CAC certificate + TIN | Included at portal | Once |
| Stamp duty | Variable by capital | Once |
| VAT | 7.5 % | Monthly |
| Company Income Tax (CIT) | 0-30 % by turnover | Annual |
| Small company relief | 0 % below NGN 25M turnover | Annual |
| Business premises levy | Variable by state | Annual |
A web agency above the turnover threshold must charge 7.5 % VAT and remit it monthly. Small companies with turnover below NGN 25 million enjoy a 0 % Company Income Tax rate, a major relief for early-stage founders.
Mini case study
Chidi, a web developer in Lagos, invoices NGN 1.2 million a month to local clients and a UK agency. He registers a Private Ltd: nominal NGN 100,000 capital, about NGN 50,000 in fees via an accredited agent, certificate issued in 5 days. The corporate form lets him sign a contract with a bank that required a limited company, a deal he could never have won as a Business Name. Over the year, the protection of his personal assets easily justifies the extra registration cost.
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FAQ
How long does CAC registration take?
Between 1 day for a Business Name and 7 working days for a Private Ltd. Delays grow if the application is incomplete or if name reservation is rejected.
What is the minimum capital for a Private Ltd?
The nominal share capital is NGN 100,000, and it does not need to be fully paid at registration. It simply defines the shareholding structure.
Do I need an accredited agent?
Not for a Business Name, but recommended for a Private Ltd to secure the constitutional documents. An agent typically adds NGN 20,000 to NGN 40,000.
When must I charge 7.5 % VAT?
Once your turnover places you above the registration threshold. Small companies below NGN 25 million turnover also enjoy a 0 % Company Income Tax rate.
Can a foreign freelancer register?
Yes, the CAC accepts foreign founders, subject to the required residency and immigration approvals for active business participation.
Let's talk about your project. We help newly registered Nigerian entrepreneurs go from incorporation to their first live website. 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.
