The verdict in three sentences
A referral partner or freelancer earning commissions must issue compliant invoices, which requires registration. Good news: in 2026, one-stop shops (CAC in Nigeria, RGD in Ghana) register a sole proprietorship in 24 to 72 hours for a modest cost. Staying informal becomes risky as soon as your commissions exceed a few million FCFA a year: reassessment, exclusion from formal markets, inability to open a merchant account.
CAC vs RGD: 2026 timelines and costs
Both registries have greatly simplified life for founders. Here are 2026 orders of magnitude (estimate, confirm with the registry).
| Criterion 2026 | CAC (Nigeria) | RGD (Ghana) |
|---|---|---|
| Sole proprietorship time | 24-48 h | 24-72 h |
| Ltd / company time | 3-7 days | 3-5 days |
| Sole proprietorship cost | ~10,000-30,000 FCFA equiv. | ~15,000-30,000 FCFA equiv. |
| Ltd registration cost | ~50,000-100,000 FCFA equiv. | ~50,000-120,000 FCFA equiv. |
| Minimum share capital | Low / none for small Ltd | Stated capital, variable |
| Online portal | Yes | Yes |
Sole proprietorship or company?
The form depends on your commission volume and your need for protection. To start as a referral partner, a sole proprietorship is often enough.
| Form | Best for | 2026 taxation | Merchant / mobile money account |
|---|---|---|---|
| Sole proprietorship | Referral partner, new freelancer | Simplified regime, VAT above a threshold | Merchant mobile money account possible |
| Ltd / company | High volume, partners | Corporate tax ~25-30 %, VAT | Business bank account required |
| Small-business regime | Depending on turnover | Progressive scale | Recommended once registered |
A merchant mobile money account (not a personal one) is essential: it separates your flows, eases bookkeeping and reassures clients paying you a commission.
Mini case study
Emeka, a referral partner, expects 5,000,000 FCFA of commissions over the year. Staying informal, he can neither invoice properly nor open a merchant account, and he risks a tax reassessment. He registers a sole proprietorship via the CAC portal in 48 h for the equivalent of 25,000 FCFA. He opens a merchant mobile money account, issues compliant invoices and deducts his business expenses (transport, phone, data). Total first-year formalisation cost: under 60,000 FCFA, i.e. 1.2 % of his commissions — a trivial investment against the security and credibility gained with his clients and the agency.
FAQ
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How much does it cost to register a sole proprietorship in 2026?
Around 10,000 to 30,000 FCFA equivalent at the CAC or RGD one-stop shop. A limited company costs more like 50,000 to 120,000 FCFA equivalent depending on legal and publication fees.
How long until I am registered?
A sole proprietorship comes through in 24 to 72 hours via CAC or RGD. A company usually takes 3 to 7 days.
At what threshold does staying informal become risky?
As soon as your commissions exceed a few million FCFA a year, lacking registration exposes you to reassessment and locks you out of merchant accounts and formal markets.
Can I invoice a referral commission without a company?
Yes, a registered sole proprietorship is enough to issue compliant invoices. It is the simplest form to start as a referral partner.
Do I charge VAT on my commissions?
VAT applies above a turnover threshold. Below it, the simplified regime generally exempts you; confirm your situation with the tax office.
Let's talk about your project. We help you formalise and invoice your referral commissions fully legally. 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.
