The verdict in three sentences
A referral agent who wants to earn Kolonell commissions of 8 to 15 % on serious deals must be able to issue an invoice, and therefore be registered. In Nigeria, the CAC registers a Business Name in a few days online for a modest fee, which is enough to start. Moving to a Limited Company (LTD) only becomes worthwhile at high turnover or to reassure large corporate accounts.
Why registration unlocks big contracts
An institutional client — bank, NGO, corporate group — never pays a commission "hand to hand". Its accounting requires an invoice with a TIN and registration number. Without a status, you are confined to small informal deals and let the most lucrative tickets slip away.
Registration also opens a business bank account, the ability to reclaim VAT on your expenses, and instant credibility in front of a CEO. It is an investment of a few tens of thousands that pays for itself on your first institutional commission.
Business Name or Limited Company: the comparison
The choice is between simplicity (Business Name) and asset protection (company). Here are 2026 orders of magnitude at CAC Nigeria.
| Status | Registration cost (2026 estimate) | Delay | Advised turnover ceiling | Accounting |
|---|---|---|---|---|
| Business Name | ~N10,000 - 30,000 | a few days | small/solo scale | light |
| Enterprise/partnership | ~N15,000 - 40,000 | 3-5 days | shared | simplified |
| Limited Company (small) | ~N50,000 - 100,000 + capital | 5-10 days | unlimited | full |
| Public/large company | higher | 7-15 days | unlimited | full |
For a starting referral agent, the Business Name is the logical entry point. You move to an LTD when annual commissions grow large or when a premium client requires a structure limiting your liability.
Regional comparison: CAC Nigeria vs APIX Senegal
| Item | CAC Nigeria | APIX Senegal |
|---|---|---|
| Base structure | Business Name | Sole proprietorship (EI) |
| Base cost (2026 estimate) | ~N10,000 - 30,000 | ~10,000 - 30,000 FCFA |
| Upper structure | Limited Company (LTD) | SUARL / SARL |
| Online delay | a few days | ~48 h |
| Tax ID | TIN | NINEA |
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Mini case study
Fatou, a consultant in Lagos, refers an institutional website project worth N8,000,000 to Kolonell. Her institutional commission is 8 %, i.e. N640,000. The client, an insurance company, requires an invoice. Fatou registers a Business Name at CAC for ~N25,000 in a few days, issues her invoice, and collects her N640,000 into her business account. The formalization cost is under 4 % of her first commission: paid off in a single deal.
FAQ
How much does a Business Name really cost at CAC in 2026? Expect an order of magnitude of N10,000 to 30,000 depending on options. It is the cheapest status that lets you invoice legally.
How long until I am registered? CAC targets a few days online for a Business Name, versus 5 to 15 days for a company with capital deposit.
Do I need minimum capital? No for a Business Name. For an LTD, share capital is required (often modest but must be stated), hence the longer delay and higher cost.
Can I combine this with salaried employment? Yes, a referral Business Name is compatible with a job, subject to your employment contract. You then declare additional income.
Which status to target 10 % marketplace commissions? A Business Name is fine to start, but for marketplace tickets worth millions, an LTD reassures the client more and protects your assets.
Becoming a Kolonell referral partner
Once registered, you can join the Kolonell referral program and earn: 15 % + 5 % recurring on a showcase site, 12 % on an e-commerce project, 10 % on a marketplace, 8 % on an institutional contract. A single institutional sale at N8M earns you N640,000.
Let's talk about your project. We help you pick the right status and invoice your first commissions. 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.
