The verdict in three sentences
As long as your activity stays informal, you lose the B2B contracts, corporate bank account and credibility that grow a business. The CAC, Nigeria's corporate registry, has cut registration to a few days and a modest fee. Moving to a registered business name or limited company is no longer an administrative mountain: it is a growth decision.
Staying informal versus registering
Informality looks free, but its hidden cost is real: you cannot invoice properly, bid for tenders or open a corporate account.
| Criterion | Stay informal | Register (business name / LTD) |
|---|---|---|
| B2B contracts / tenders | Refused | Accessible |
| Corporate bank account | Impossible | Required and opened |
| VAT invoicing | No | Yes |
| Access to credit | Very limited | Easier |
| Client credibility | Low | Strong |
| Asset protection | None | Limited liability (LTD) |
Steps, costs and timelines with the CAC in 2026
The benchmarks below give the 2026 order of magnitude for registering via the CAC.
| Item | 2026 benchmark |
|---|---|
| Registration time | 1 to 7 days (online) |
| Business name cost | 20,000 to 35,000 NGN (estimate) |
| Limited company cost | 50,000 to 100,000 NGN (estimate) |
| Minimum capital | Flexible for small LTD |
| Documents issued | Certificate + TIN |
| Bank account | Required to finalize |
The TIN is your tax identifier; the certificate is your registry proof. Both are essential to invoice, import or sign formal contracts.
Mini case study
Ousmane sells freelance graphic design in Lagos with no structure. A corporate client offers a contract worth 1,500,000 FCFA equivalent but demands an invoice with a TIN and registration certificate. Without registering, he loses the contract. Through the CAC, he registers a limited company in a few days for an order-of-magnitude cost of 80,000 NGN. The signed contract covers that cost many times over, and he can now bid for other tenders.
FAQ
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
What is the difference between a business name and an LTD?
A business name is simpler and cheaper but offers no liability protection. An LTD is a separate legal person: your personal assets are shielded from company debts.
Do I need high minimum capital?
No. For a small LTD, capital is flexible. Set a realistic figure; the key is opening the corporate account that holds it.
How long does it really take?
The CAC targets 1 to 7 days online once the file is complete. The limiting factor is usually preparing documents and opening the bank account.
Once registered, do I need a website?
A website gives your new structure the same online credibility the certificate gives it on paper. It is often the first investment after registration.
Can I do it all without traveling?
Much of it is handled online, but some steps (bank, signature) may require a physical visit depending on the case.
Let's talk about your project. After registration, we give your business a credible professional website in a few days. 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.
