Why should Nigerian businesses register with CAC?
Registering with the Corporate Affairs Commission (CAC) gives your business legal recognition in Nigeria. Key benefits: (1) Open a corporate bank account — most Nigerian banks require CAC documents, (2) Access government and corporate contracts — almost all require a registered business, (3) Limited liability protection — as a limited company, your personal assets are protected from business debts, (4) Build credibility with customers and investors, (5) Access funding from banks, microfinance institutions, and development finance institutions like NIRSAL and CBN development funds, (6) Trademark and intellectual property registration requires a CAC-registered business.
What's the difference between Business Name registration and a Limited Liability Company?
Business Name (sole proprietorship or partnership) registration is simpler and cheaper. It costs from ₦10,000 and is done online via the CAC portal. However, the owner has unlimited personal liability — meaning if the business has debts, creditors can claim personal assets. A Private Limited Liability Company (Ltd/GTE) provides a separate legal entity — the company can sue and be sued, own property, and protects owners' personal assets. Company registration costs from ₦30,000–₦100,000+ depending on share capital. For businesses seeking investment or corporate contracts, a Limited company is strongly recommended.
What documents are required to register a business with CAC?
For Business Name registration: (1) Proposed business name (have 2–3 alternatives ready), (2) Nature of business / NAICS code, (3) Director/proprietor's full name, date of birth, residential address, and valid ID (NIN, passport, or driver's license), (4) Business address. For Limited Company registration: all of the above plus (5) Memorandum and Articles of Association (CAC provides standard templates), (6) Statement of Share Capital (minimum ₦100,000 for private companies), (7) Particulars of Directors and shareholders (minimum 2 directors for Ltd), (8) Declaration of compliance signed by a legal practitioner.
How much does CAC registration cost in Nigeria?
CAC fees (as of 2024/2025): Business Name (Sole Proprietor): ₦10,000 government fee + optional agent fees. Business Name (Partnership): ₦10,000–₦30,000 depending on number of partners. Private Limited Company (Ltd) with share capital up to ₦1 million: ₦30,000. With share capital ₦1M–₦50M: ₦30,000–₦100,000 on a sliding scale. There are also annual renewal/filing fees for companies. Kontrol's CAC filing service handles the entire registration process, including name reservation, document preparation, and submission, starting from ₦35,000 all-in.
How do I register a company online with CAC in Nigeria?
CAC registration is fully online via the CAC portal (cac.gov.ng): Step 1 — Check company name availability using the CAC name search tool. Step 2 — Complete the pre-registration form online with director and shareholder details. Step 3 — Upload scanned identification documents for all directors. Step 4 — Upload your signed Memorandum and Articles of Association. Step 5 — Pay the government registration fee online. Step 6 — Submit and await approval (typically 3–10 working days). After approval, you receive your Certificate of Incorporation, Memorandum & Articles, and Status Report digitally. Kontrol can handle all steps on your behalf.
What are Annual Returns and when must they be filed?
All CAC-registered entities must file Annual Returns to keep their registration active. For Business Names: annually within 12 months of registration date. For Private Limited Companies: annually, with financial statements if turnover exceeds ₦120 million. Failure to file for 3 consecutive years triggers the CAC to strike off (deregister) the company. Penalties apply for late filing — ₦3,000 per month for companies. Struck-off companies lose all legal standing, cannot operate bank accounts, and directors may be disqualified. Kontrol's compliance calendar tracks your Annual Returns deadline and sends automated reminders.
Do I automatically get a TIN when I register with CAC?
Yes. Since 2020, all newly registered CAC entities are automatically assigned a Tax Identification Number (TIN) by the Joint Tax Board (JTB). You will receive your TIN certificate together with your CAC incorporation documents. This TIN is used for all federal and state tax obligations — Companies Income Tax (CIT), VAT registration with NRS/NRS, PAYE remittances, and Withholding Tax. Your TIN is your unique identifier across all government platforms.
What must I do immediately after CAC incorporation?
After receiving your Certificate of Incorporation: (1) Register for a TIN with the Joint Tax Board (or confirm the auto-assigned TIN), (2) Register for VAT with NRS if your projected annual turnover will exceed ₦25 million, (3) Open a corporate bank account in your company name, (4) File your first annual return within 18 months of incorporation (CAC provision for new companies), (5) Register with NSITF (Nigeria Social Insurance Trust Fund) for employee insurance if you have staff, (6) Register for PAYE with your state's inland revenue service for payroll, (7) Obtain any sector-specific licences (NAFDAC, SON, CBN, etc.) if applicable.
