Businesses in Nigeria are registered with the CAC, the Corporate Affairs Commission, under the Companies and Allied Matters Act 2020. Registration is done online. The state comes later - tax, permits and signage are Lagos matters.
Choose what you are registering
| Business name | Private limited company | |
|---|---|---|
| What it is | A trading name for you as a person | A separate legal person |
| Your liability | Unlimited - your own assets are exposed | Limited to your shares |
| CAC fee | From ₦10,000 | From ₦10,000, plus stamp duty |
| Who can own it | Individuals and partnerships | Anyone, with conditions for foreign owners |
| Good for | A sole trader starting small | Anything with real money, staff or contracts |
A business name is cheap and quick, and leaves you personally liable for everything the business owes. A limited company costs more to set up and run, keeps your own house out of its debts, and is what most clients, landlords and banks expect once the business is real.
A third form, incorporated trustees, is for churches, mosques, associations and NGOs. It is not for trading.
A company can have one owner
One person may form and run a private company alone under s.18(2) of CAMA 2020. Before 2020 you needed two.
The minimum issued share capital of a private company is ₦100,000 under section 27 of CAMA 2020. Stamp duty is charged on the share capital, so choosing a far larger figure than you need costs money on day one.
The steps
- Reserve the name on the CAC’s online portal. Have two or three in mind; similar names are refused.
- Complete the registration form with the directors, shareholders, the registered address and the company’s objects.
- Pay the CAC fee and the stamp duty online.
- Sign and upload what the portal asks for.
- Download your certificate and the registration documents.
Many people use an accredited agent or a lawyer for this, which is reasonable for a company. For a business name, the portal is manageable on your own.
Tax numbers
A Tax Identification Number is issued alongside CAC registration. You need it to open a business bank account, to invoice larger clients and to bid for contracts.
Which tax authority you deal with depends on what you are:
- A company pays companies income tax to the federal FIRS. Under the Nigeria Tax Act 2025, a small company with turnover at or below ₦100,000,000 pays nil, and does not charge VAT. Above that, companies income tax is 30%, with a development levy of 4%.
- A business name, being you, is taxed as your personal income, by the LIRS if you live in Lagos.
Once you employ people
- PAYE. Deduct and remit your staff’s income tax to the LIRS monthly.
- Pension. Compulsory once you have 15 or more employees.
- The Employee Compensation Scheme, a 1% levy on payroll, paid by you alone.
Keeping it alive
A company must file an annual return with the CAC within 6 months of its financial year end, every year, whether or not it traded. Missed returns attract penalties, and a company that stays dormant on the register long enough can be struck off. Put the date in your calendar the day you register.
The Lagos layer
The CAC makes the business legal. Lagos then has its own requirements, which depend on what you do and where:
- Signage. A sign outside your premises needs a permit from the Lagos State Signage and Advertisement Agency, LASAA. Unpermitted signs are removed, and fined.
- Premises. Your local government charges levies and permits on business premises. Ask the landlord what the previous tenant paid.
- Regulated trades. Food, health, schools and other regulated businesses need their own licences from the relevant agency before they open.
If you are not Nigerian
A company with foreign shareholders can be registered with the CAC, but to operate it generally also needs registration with the Nigerian Investment Promotion Commission and a minimum share capital, currently set at ₦100,000,000 - a figure that has changed before, so confirm it with the NIPC. A foreign director who will work in the business also needs the right immigration status.