Nigeria is Africa's largest economy. Over 3 million small businesses contribute 50% of Nigeria's GDP. They employ 80% of the workforce. Starting a business here requires company registration with the Corporate Affairs Commission (CAC). This guide explains the 2026 process, costs, and requirements.

Why Register Your Company in Nigeria

Registration gives your business legal status. A registered company can open bank accounts. It can apply for loans and attract investors. The Bank of Industry offers MSME loans at 9% interest. Some programs provide up to N1 billion in funding. Foreign investors can own 100% of companies in most sectors. The CAC registered 245,000 new entities in 2025. That was a 15% increase from 2024. Lagos accounted for 40% of these registrations.

Types of Business Structures in Nigeria

Choose a structure that fits your needs. A Private Limited Company is popular for startups. It requires at least one director and one shareholder. No residency requirement exists for directors. But you need a local Nigerian address. Share capital can be up to 50 million naira. A Public Limited Company suits larger businesses. It has higher registration fees. A Business Name registration works for sole proprietors. It costs less but offers no share capital. NGOs have different registration rules and costs.

Company Registration Requirements for 2026

Gather these documents before starting. You need two unique company names for availability checks. Prepare a Memorandum and Articles of Association. The CAC portal can generate this automatically. Provide a Statement of Share Capital. Submit particulars of all directors and shareholders. Include ID copies, email addresses, and phone numbers. Show proof of your registered office address. Complete CAC Form CAC 1.1. All documents must be PDFs under 5MB in size.

Step-by-Step Registration Process

Follow these steps for a smooth registration. First, create a free account on the CAC portal. Use publicsearch.cac.gov.ng for name availability checks. Second, reserve your company name. This costs N800 and gives 60 days of protection. Approval is instant if the name is available. Third, upload all required documents to the portal. Fourth, pay fees through the Remita payment platform. You can use naira or Visa cards. Fifth, receive your Certificate of Incorporation. It comes digitally with an e-stamp.

Registration Costs and Timelines

Know the official fees for 2026. Name reservation costs N800. Private Limited Company registration is N12,000. Add N5,000 for stamp duty and N10,000 as a service fee. Total cost is about N27,000. Public Limited Companies pay N20,000 as a base fee. Stamp duty is higher for this structure. Business Name registration costs N6,000. The timeline is now 1-2 days for online approval. Physical stamp collection at CAC offices adds 3-5 days. Lagos and Abuja have the main CAC offices.

Using Professional Services vs DIY

You can register your company yourself. DIY costs under N50,000 total. But many entrepreneurs use professional help. Lawyers charge N100,000 to N200,000 for full packages. Goidara.io charges N150,000 for registration and compliance services. UseMultiplier Nigeria registered 500+ remote companies in 2025. They handle the process for international founders. Professional services save time and reduce errors. They also help with post-registration steps.

Post-Registration Requirements

After CAC registration, complete these steps. Obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service. Use jars.firs.gov.ng for a free application. Processing takes 24 hours. Enroll with the NSITF and NSSF for employee contributions. These are 1% and 2% of payroll respectively. A TIN is mandatory for opening business bank accounts. File annual returns with the CAC. The fee is N5,000 if filed on time. Late filings incur penalties.

2026 Tax Reforms for New Businesses

New tax rules started in 2026. The Nigeria Tax Act 2025 introduced changes. Small businesses with under N25 million revenue pay 0.5% turnover tax. Value Added Tax remains at 7.5% with specific thresholds. The government consolidated over ten taxes into just five. This simplifies compliance for new companies. The CAC now integrates with FIRS for automatic TIN generation. This reduces paperwork for entrepreneurs.

Common Challenges and Solutions

Entrepreneurs face some registration hurdles. Power outages can interrupt document uploads. Use internet cafes or backup power solutions. Name squatting occurs when others reserve desirable names. Check trademarks at nipcom.gov.ng before choosing names. Scam agents sometimes charge five times the official fees. Always verify agents through the CAC website. Some documents require notarization or certification. Plan for this extra step in your timeline.

Real Company Examples

Matrix Energy Group credits fast CAC registration for its growth. The company expanded quickly after proper incorporation. UseMultiplier helps foreign companies register remotely. They handled 500+ registrations in 2025 alone. These examples show registration enables business scaling. Proper registration also helped companies access the BOI MSME fund. This government program offers favorable loan terms.

Resources for Further Guidance

Use these official resources for accurate information. Visit cac.gov.ng/registration-guidelines for CAC rules. Check goidara.com/blog for legal guides on Nigerian business. Read usemultiplier.com/nigeria/company-registration for international perspectives. Review skuad.io/company-registration/nigeria for updated 2025 insights. NigeriaMag provides tax consolidation details. Always verify information through official channels.

FAQ

What is the total cost to register a private company in Nigeria? Total cost is about N27,000 for a Private Limited Company in 2026. This includes N12,000 registration, N5,000 stamp duty, and N10,000 service fee. Name reservation adds N800.

How long does CAC registration take in 2026? Online approval takes 1-2 days if documents are correct. Physical stamp collection at CAC offices adds 3-5 extra days. The entire process typically completes within a week.

Can a foreigner register a company in Nigeria? Yes, foreigners can register companies in Nigeria. No residency requirement exists for directors or shareholders. But you need a local Nigerian address for registration documents.

What happens after I get my CAC certificate? Obtain a Tax Identification Number from FIRS within 24 hours. Enroll with NSITF and NSSF for employee matters. Use your TIN to open business bank accounts.

Should I use a lawyer or register myself? DIY costs under N50,000 and works for simple cases. Lawyers charge N100,000-200,000 but handle complexities. Professional services help with compliance and save time.

What are the 2026 tax rates for new businesses? Businesses under N25 million revenue pay 0.5% turnover tax. VAT is 7.5% with specific thresholds. The government consolidated multiple taxes into five main categories.

How do I check if my business name is available? Use the CAC portal at publicsearch.cac.gov.ng for name checks. Have two unique names ready as backups. Name reservation costs N800 and protects the name for 60 days.

Registering your company in Nigeria opens many opportunities. The process is faster and cheaper in 2026. Follow the steps carefully to avoid delays. Consider professional help for complex cases. Then focus on growing your business in Africa's largest economy.