Incorporating a Business in Nigeria: Step-by-Step CAC Guide

Starting a business in Nigeria requires legal recognition—and that begins with registration at the Corporate Affairs Commission (CAC). Whether you’re setting up a small enterprise or launching a company with big dreams, registering your business gives it structure, credibility, and access to opportunities like bank loans, contracts, and government support.

In this post, you’ll find a clear step-by-step guide to incorporating a business in Nigeria using the CAC process.

Step 1: Choose a Business Structure

The type of business you want to register will determine the incorporation process. Common options under Nigerian law include:

• Business Name (Enterprise or Sole Proprietorship)
  
• Private Limited Company (LTD)
  
• Public Limited Company (PLC)
  
• Incorporated Trustees (NGOs, churches, foundations)
  
• Limited Liability Partnership (LLP)
  

For most startups and SMEs, a Private Limited Company (LTD) is the preferred structure.

Step 2: Check for Name Availability

Before registering, you must ensure your business name is unique and not already in use.

How to check:

1. Visit https://pre.cac.gov.ng
   
2. Click on Public Search
   
3. Type in your desired name to check its availability
   

Once your name is unique, proceed to reserve it for a small fee.

Step 3: Reserve Your Business Name

If your name is available:

1. Create an account on the CAC portal
   
2. Fill out the Name Reservation Form
   
3. Pay the name reservation fee (₦500 as of now)
   
4. Wait for CAC approval (usually within 24–72 hours)
   

Upon approval, you will receive a Name Availability Code, valid for 60 days.

Step 4: Complete the Online Registration Form

Log in to the CAC portal and:

• Select “Register a Company”
  
• Input your availability code
  
• Fill out the required details:
  
  • Company type
    
  • Registered address
    
  • Share capital (minimum for LTD is ₦100,000)
    
  • Shareholding structure
    
  • Details of directors and shareholders
    
  • Company secretary (optional for small companies)
    

Note: All directors must be at least 18 years old.

Step 5: Prepare and Upload Required Documents

The CAC will require the following documents:

• Memorandum and Articles of Association (can be auto-generated)
  
• Identification (National ID, International Passport, Voter’s Card, or Driver’s License) of directors and shareholders
  
• Passport photographs
  
• Signature page (scanned copies)
  

Statement of compliance by a legal practitioner (for LTDs)

Step 6: Pay the Registration Fees

Pay the official CAC registration fees through the online portal. The fee depends on your share capital. For example:

• For a company with ₦1,000,000 share capital, the fee is around ₦10,000 (excluding stamp duties)
  

Also, pay stamp duty via the Federal Inland Revenue Service (FIRS) integration on the CAC portal.

Step 7: Submit Application and Await Certificate

Once all documents are uploaded and payment is made:

• Submit your application
  
• CAC will review and approve your registration
  
• If successful, you will receive your Certificate of Incorporation, Status Report, and Form CAC 1.1 via your dashboard or email
  

This usually takes 3–7 business days.

Step 8: Apply for Your Tax Identification Number (TIN)

After incorporation:

• Visit the FIRS office or use the online TIN portal
  
• TIN is free and required for opening a corporate bank account, invoicing, and filing taxes
• As of recent CAC reforms, some companies receive their TIN automatically with their certificate.

Step 9: Open a Business Bank Account

With your Certificate of Incorporation, TIN, and other documents, proceed to open a corporate bank account in the company’s name. You may need:

• Certificate of Incorporation
  
• CAC Form (Status Report or CAC 1.1)
  
• TIN
  
• Valid IDs of directors
  
• Passport photos
  

Optional: Register for Other Permits or Licenses

Depending on your business type, you may also need to register with:

• NAFDAC (for food, drugs, cosmetics)
  
• SON (for product standardization)
  
• DPR or NUPRC (for oil and gas)
  
• Export Promotion Council (for exporters)
  

Local government trade permits

Conclusion

Registering your business with CAC is a crucial step toward legitimacy, trust, and long-term growth. With Nigeria’s online CAC portal, the process is faster and more efficient than ever before.

Pro tip: If you’re unsure or too busy, you can consult a lawyer, accountant, or certified CAC agent to assist with the entire process.