How to Register a Business in Nigeria (2025) — Step-by-Step for Sole Traders, Partnerships, LLP & Limited Companies
Registering a business in Nigeria starts with the Corporate Affairs Commission (CAC) online Company Registration Portal (CRP).
Use it to reserve a name, complete forms, and make payments for Business Names, Partnerships, Limited Liability Partnerships (LLPs), and Companies. The Companies and Allied Matters Act (CAMA) 2020 introduces modern options like single-member companies and LLPs, ideal for small businesses seeking limited liability.
Post-CAC registration, obtain a Tax Identification Number (TIN) and, if relevant, register for Value Added Tax (VAT), Pay As You Earn (PAYE), and employer schemes with the Pension Commission (PenCom) and Nigeria Social Insurance Trust Fund (NSITF).
Fees and processes evolve—always verify current fees on the CAC website before proceeding.
Why This Guide — and How to Use It
Navigating business registration in Nigeria can be daunting, especially with evolving laws like CAMA 2020 and periodic fee adjustments.
This guide draws from official sources such as the CAC, CAMA 2020, Federal Inland Revenue Service (FIRS), Nigerian Investment Promotion Commission (NIPC), PenCom, and NSITF to provide accurate, up-to-date information as of 2025.
You’ll find two approaches:
1. Plain, “Common-Man” Checklist: Quick, actionable steps for immediate use.
2. Detailed, Professional Guide: In-depth explanations, legal forms, required documents, potential pitfalls, and post-registration compliance.
Plus, SEO and AdSense tips to help this content rank well on search engines.
Where laws or fees are subject to change (e.g., CAC fees reviewed in 2025), we’ve flagged them explicitly. For the latest, consult the official websites linked at the end.
Part A — Quick Guide: Which Structure Should I Pick?
Choosing the right business structure depends on your scale, liability needs, and growth plans.
Here’s a straightforward overview:
1. Business Name (Sole Proprietor / Trading Name)
– What it is: A simple registration for a trading name under your personal ownership.
No separate legal entity from you.
– Best for: Market stalls, freelancers, or micro-shops.
– Pros: Cheapest and fastest; minimal paperwork.
– Cons: Unlimited personal liability for debts; challenging to raise capital.
– How to register: Via CAC’s Business Names section—reserve a name, complete forms, and pay.
2. Partnership (General Partnership)
– What it is: Two or more individuals sharing profits and liabilities.
– Best for: Small professional practices like law or accounting firms.
– Note: Often registered as a Business Name at CAC. For limited liability, opt for an LLP instead.
3. LLP or Limited Partnership
– What it is: Under CAMA 2020, LLPs offer limited liability and a separate legal personality.
Limited Partnerships allow passive investors with limited liability.
– Best for: Professionals seeking liability protection without a full company setup.
4. Private Company Limited by Shares (Ltd)
– What it is: A separate legal entity with shareholders’ liability limited to their shares.
– Best for: Startups aiming for growth, investment, or multiple owners.
– CAMA 2020 perks: Allows single-member (one shareholder) and single-director setups for small companies, making it accessible for solo entrepreneurs.
5. Public Company / Company Limited by Guarantee / Incorporated Trustee
– For: Large enterprises, charities, or NGOs. These involve stricter compliance, governance, and public disclosure requirements—not ideal for beginners.
6. Foreign Company / Subsidiary / Branch
– What it is: Foreign entities can incorporate a Nigerian subsidiary (preferred for separate legal status) or register a branch.
– Best for: International firms entering the Nigerian market.
– Key: Subsidiaries follow standard company registration but require NIPC registration for foreign participation.
Part B — Step-by-Step Registration (Plain Checklist with Documents)
All registrations begin on the CAC’s Company Registration Portal (CRP/ICRP) at pre.cac.gov.ng.
It’s mostly online: reserve a name to get an Approval Verification (AV) code, complete forms, upload documents, and pay via Remita.
Follow portal prompts for a smooth process.
1. Common Items You’ll Always Need
– Valid ID: National Identification Number (NIN) slip, passport, or driver’s licence.
– Proof of address: Utility bill or similar.
– Passport photos and scanned signature.
– Nigerian business address.
– Email and phone number.
– For companies: Memorandum and Articles of Association (MemArt), director/shareholder details, and statement of share capital.
2. Business Name (Fast Track)
1. Create a CAC account on the CRP.
2. Search for name availability and reserve it (get AV code).
3. Complete the BN pre-registration form (CAC-BNo1), upload proprietor’s ID, photo, and signature.
4. Pay the filing fee via Remita and submit.
5. If approved, download your Certificate of Registration and Status Report.
Typical documents: ID, passport photo, proof of address, completed BN form.
Typical fees: Name reservation ≈ ₦500; registration varies (fees reviewed in 2025—confirm on CAC’s fees page before paying). Processing: Hours to days if documents are correct.
3. Partnership (General / LLP)
– General Partnership: Often handled as a Business Name registration (follow above steps). Draft a partnership agreement (recommended but not mandatory to file).
– LLP / Limited Partnership: Use CAC’s LLP section. Reserve name, complete Form CAC/LLP 01, upload agreement, and pay. Receive a Certificate of Registration.
Documents: Partnership agreement, partner IDs, and addresses.
Fees: Similar to companies; check CAC for specifics.
4. Private Company (Ltd) — Step-by-Step
1. Reserve name on CRP (get AV code).
2. Prepare documents: MemArt, subscriber particulars, statement of share capital, director details (IDs, addresses), and a compliance statement (often by a CAC-accredited practitioner).
3. On CRP: Complete pre-registration forms, upload documents, and pay filing/stamp duty fees (portal calculates).
4. Download Certificate of Incorporation, MemArt, and Status Report upon approval.
Legal notes: CAMA 2020 permits single-member/single-director for small companies. Foreign investors or regulated sectors (e.g., banking, oil) face additional rules—consult a lawyer.
Documents: As above, plus any sector-specific approvals.
Fees: Vary by share capital; confirm on CAC (changes flagged for 2025).
5. Subsidiary / Foreign Company
– Subsidiary: Register as a standard company but declare foreign shareholders. Post-CAC, register with NIPC.
– Branch: Use special CAC forms (CAC 21/22) for notices.
Extra steps for foreigners: NIPC registration, expatriate permits, Combined Expatriate Residence Permit and Aliens Card (CERPAC) for directors, and sector regulators.
Documents: Parent company details, foreign exchange proofs.
Fees: Standard plus NIPC fees.
Part C — Post-Registration: Tax, Employment & Licences (Must-Do Checklist)
Registration doesn’t end at CAC—compliance is key to avoid penalties.
1. Tax Identification Number (TIN): Apply via Joint Tax Board (JTB) or FIRS e-services. Essential for banking.
2. VAT Registration: If your business makes taxable supplies, use FIRS’ VAT Form 001 or TaxProMax portal.
3. PAYE / Withholding Tax: Register with your local tax office; manage payroll deductions.
4. Pension (PenCom): Obtain an Employer Code via a Pension Fund Administrator (PFA). Set up Retirement Savings Accounts (RSAs). Contributions: Employer min 10%, employee 8% (verify latest).
5. NSITF (Employees’ Compensation): Register using Form ECS RE01; pay statutory contributions.
6. Sector Licences: Check regulators like National Agency for Food and Drug Administration and Control (NAFDAC), Central Bank of Nigeria (CBN), or Nigerian Communications Commission (NCC).
Part D — Documents You Should Keep & Standard Templates
Maintain these for audits and operations:
– Certified Certificate of Incorporation / Business Name Certificate.
– MemArt (for companies).
– Board/shareholder meeting minutes.
– Tax records (TIN, VAT certificate), PAYE files.
– Employment contracts, PenCom/NSITF proofs.
Use official templates from CAC/FIRS portals for accuracy.
Part E — Benefits & Disadvantages of Each Category (Short Analysis)
– Business Name: Affordable and quick, but unlimited liability limits borrowing and exposes personal assets.
– General Partnership: Combines skills and capital; joint liability suits high-trust groups.
– LLP: Balances partnership flexibility with limited liability—perfect for professionals.
– Private Company (Ltd): Limited liability, easier fundraising, and credibility; higher compliance costs. CAMA 2020 eases rules for small setups.
– Subsidiary: Isolates liability for foreign parents; simplifies local banking but requires extra registrations like NIPC.
Part F — Common Pitfalls & How to Avoid Them
– Using Agents Blindly: Handle it yourself on CRP to avoid scams—verify AV codes and receipts.
– Skipping TIN/VAT/Employer Codes: Causes banking delays and fines; apply immediately post-CAC.
– Name Conflicts: Search trademark registry (NIPO) first to prevent blocks.
– Director/Shareholder Missteps: Understand CAMA 2020 relaxations, but seek legal advice for regulated industries.
Related Content On STARTING A BUSINESS IN NIGERIA https://financialliteracy.com.ng/starting-a-business-in-nigeria/
Frequently Asked Questions (FAQ)
Here are common queries based on user searches:
– How quickly can I register a business name with CAC?
If documents are correct and you use the CRP portal, it can take hours to days. Timings depend on queries and payments—keep your AV code handy.
– Do I need a lawyer to register a private company?
You can file yourself, but a CAC-accredited practitioner is recommended for compliance statements and complex MemArt.
– After CAC registration, what must I register for tax and employees?
Get a TIN, VAT (if applicable), PAYE, and employer codes with PenCom and NSITF.
– What are the fees for business registration in 2025?
Name reservation ≈ ₦500; full registration varies—check CAC’s latest fees page as they were reviewed in 2025.
– Can a foreigner register a company in Nigeria?
Yes, via a subsidiary; declare foreign participation and register with NIPC.
– What’s the difference between LLP and Ltd?
LLP offers partnership flexibility with limited liability; Ltd is a full company for broader scalability.
– Do I need to register a trademark?
Not mandatory, but recommended via NIPO to protect your brand.
– What if my business is in a regulated sector?
Obtain additional licences from bodies like CBN or NAFDAC post-CAC.
Useful Official Links and Authoritative References
– [CAC — Company Registration Portal]
(https://pre.cac.gov.ng/) (user guide, forms).
– [CAMA 2020](https://www.cac.gov.ng/cama/) (full act and summaries).
– [FIRS — Tax Registration](https://www.firs.gov.ng/) (TIN, VAT portals).
– [NIPC — Foreign Investment](https://www.nipc.gov.ng/) (registration guides).
– [PenCom — Pensions](https://www.pencom.gov.ng/) (employer codes).
– [NSITF — Compensation](https://nsitf.gov.ng/) (ECS forms).
– [NIPO — Trademarks](https://iponigeria.com/) (registry searches).
Author
Written by Stanley Onyedeke https://financialliteracy.com.ng/author-bio-stanley-onyedeke/, drawing on official Nigerian government sources for accuracy. Last updated: October 2025.
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