How to Register a Business Name in Nigeria

To register a Business Name in Nigeria, you apply to the Corporate Affairs Commission (CAC) through its online portal. The process involves a name search, submitting your details and identification, and paying a fee. It typically takes within two weeks and costs around ₦10,500 in total.

• Two proposed business names (a primary and an alternative)
• A completed CAC-BNo1 pre-registration form (submitted online)
• Your full personal details (name, address, phone, email)
• A passport-sized photograph
• A valid government-issued ID (National ID, passport, driver's licence, or voter's card)
• A description of the nature of your business
• Proof of business address in Nigeria (e.g. utility bill, tenancy agreement, or bank statement)

1. Check your eligibility. You must be at least 18 years old and of sound mind. Only natural persons, not entities, can apply. Nigerian citizens and permanent residents may register freely. Foreign nationals can also register if they hold the appropriate immigration status and right to work in Nigeria, such as a valid residence permit or business visa, and if their chosen sector is not restricted to Nigerian citizens only.

1. Choose your business name. If you want to use a trade name that is not just your surname or initials, you must register it. Use the CAC's online Company Registration Portal (CRP) to search for name availability and reserve the name.

1. Gather your documents. Prepare the items listed in the What you need section above.

1. Reserve your name. On the portal, reserve your chosen name. This costs ₦500 and reserves the name for 60 days.

1. Complete the online form. Fill out the CAC-BNo1 pre-registration form on the portal. Provide your personal details, the business description, and the business address.

1. Upload your documents. Submit your passport photograph, valid ID, and proof of business address through the portal.

1. Pay the registration fee. Pay the filing fee of ₦10,000. Payment can be made online through the CAC portal by card or bank transfer.

1. Wait for verification and approval. The CAC reviews your application to ensure all information and documents are in order. If approved, the CAC issues a Certificate of Registration.

1. Receive your certificate. Once approved, you will receive your Certificate of Registration, which officially recognises your business.

• Cost: The total cost for a Business Name is typically ₦10,500. This is made up of a ₦500 name reservation fee and a ₦10,000 filing fee. Some platforms may charge different amounts for their services.
• Time: Registration is typically completed within two weeks.
• Liability: A Business Name has unlimited liability. This means you are personally liable for business debts.
• Tax: Income is taxed under Personal Income Tax (PIT), with marginal rates ranging from 7% to 24%.
• Capital: There is no minimum capital requirement for a Business Name.
• Name approval: Securing approval can be challenging if your name conflicts with an existing registered name or fails to meet CAC naming guidelines. Use the CAC's name search tool before applying and have alternative names ready.
• Bureaucratic delays: You may encounter slow approvals, errors in documents, or technical glitches on the CAC platform. Submit applications during non-peak periods and keep digital and hard copies of all documents.
• Internet access: The process is primarily online. If you lack reliable internet access or digital skills, you can use an internet café or ask a tech-savvy associate for help.
• Post-registration: After registration, you may need a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) for tax matters, opening a bank account, and filing returns. Depending on your business, you may also need other licences or permits from bodies like NAFDAC, NCC, or CBN.

Can I register a Business Name if I am not a Nigerian citizen? Yes, foreign nationals can register provided they hold the appropriate immigration status and right to work in Nigeria, such as a valid residence permit or business visa, and their chosen sector is not restricted to Nigerian citizens only.

How much does it cost to register a Business Name? The total cost is typically ₦10,500, which includes a ₦500 name reservation fee and a ₦10,000 filing fee. Some platforms may charge additional service fees.

How long does registration take? Registration is typically completed within two weeks.

What is the difference between a Business Name and a Limited Company? A Business Name has unlimited liability, is cheaper and quicker to set up, and is taxed under Personal Income Tax (7–24%). A Limited Company has limited liability, is a separate legal entity, costs more, takes longer to set up, and is taxed under Company Income Tax (usually 30%).

Do I need a Tax Identification Number (TIN)? Yes, after registration you will need a TIN from the Federal Inland Revenue Service (FIRS) for tax matters, opening a bank account, and filing returns.