Source: https://rivet.global/blog/register-business-nigeria-cac
Published: 2026-05-15 · Updated: 2026-05-29 · By William Sunjo M.

# How to register a company in Nigeria with the CAC

Business name or limited company? CAC registration steps, documents, share capital, the tax ID issued at registration, foreign owners and what banks ask for.

## Key takeaways

- A business name registration is for a sole proprietor or partnership; a private limited company (Ltd) is a separate legal person.
- Registration is done online on the CAC's Company Registration Portal, starting with a name availability check.
- Under CAMA 2020, a private company can have a single shareholder and director, and the minimum issued share capital is ₦100,000.
- Under the 2025 tax reforms, a tax identification number is issued as part of registration from 2026.
- Companies with foreign shareholders also register with the NIPC and face higher minimum capital for some permits.

Registering a business in Nigeria is done online with the Corporate Affairs Commission (CAC). The question most founders get stuck on comes first: business name or limited company?

## Business name or limited company?

| | Business name | Private limited company (Ltd) |
|---|---|---|
| Legal status | Not separate from the owner | Separate legal person |
| Liability | Owner is personally liable | Shareholders' liability is limited to their shares |
| Owners | One person or partners | One or more shareholders |
| Tax | Owner's personal income tax | Company income tax (small companies exempt) |
| Banks and platforms | Limited access | Expected by most business accounts and foreign clients |
| Admin | Lighter | Annual returns, statutory records, PSC register |

A business name is quick and cheap. A limited company takes more paperwork but is what most banks, payment providers, foreign clients and investors want to see, because it can sign contracts and hold accounts in its own name.

## What are the steps to register a company?

1. Check name availability and reserve a name on the CAC's Company Registration Portal.
2. Prepare the incorporation details: directors, shareholders and their shares, persons with significant control, registered address and the company's objects.
3. Upload identity documents for each director and shareholder, and signatures.
4. Pay the filing fees and stamp duty shown on the portal for your share capital.
5. Receive the certificate of incorporation and status report by email once approved.

CAMA 2020 allows a single shareholder who is also the only director, and sets a minimum issued share capital of ₦100,000 for a private company. Check the CAC's current fee schedule before filing; fees depend on share capital.

## What changed in 2026?

Under the tax reform laws signed in June 2025 and effective from 1 January 2026, registration and tax identification are linked: a tax identification number is issued as part of company registration. The laws also changed how companies are taxed, including a full exemption from company income tax for small companies. See [the Nigeria tax reform for small companies](/blog/nigeria-tax-reform-2026-small-companies).

## What do you file after incorporation?

1. Annual returns with the CAC every year, including companies that did not trade.
2. Changes to directors, shareholders, address or PSCs, within the deadlines in CAMA.
3. Tax registration and filings with the Nigeria Revenue Service and the state revenue service.
4. Statutory books: registers of members, directors and PSCs.

Missing annual returns leads to penalties, and banks often check a company's status report before opening or reviewing an account.

## What if a shareholder is foreign?

Foreign individuals and companies can own Nigerian companies. After incorporation, the company registers with the Nigerian Investment Promotion Commission. If it needs a business permit, for example for expatriate staff, higher minimum capital applies. Foreign investors bringing in capital should get a Certificate of Capital Importation from the bank that receives the funds, which matters later for repatriating dividends.

## What will a bank ask for?

Most business account providers ask for the certificate of incorporation, the CAC status report listing directors and shareholders, the memorandum and articles, proof of address, and ID for each director and beneficial owner. See [KYB documents to open a business account](/blog/kyb-documents-to-open-a-business-account) and [beneficial owners explained](/blog/beneficial-owner-explained).

## Working with clients abroad

A registered company can sell to clients anywhere. Rivet opens accounts for registered companies in the countries we support, with [USD account details](/accounts) in the company's own name, so foreign clients pay by ACH or wire like any US supplier. On Scale, the same account holds and converts NGN.

## Questions

### Should I register a business name or a limited company in Nigeria?

A business name suits a small sole proprietor with low risk. A limited company suits anyone who wants limited liability, plans to raise money, or works with foreign clients, banks and platforms that only onboard companies.

### Can one person own a company in Nigeria?

Yes. Since CAMA 2020, a private company can be formed with one shareholder, who can also be the sole director.

### How long does CAC registration take?

Name approval and incorporation can be done in a few days online when documents are complete. Queries on names, documents or IDs add time.

### Can a foreigner register a company in Nigeria?

Yes. Foreign individuals and companies can own shares. The company registers with the Nigerian Investment Promotion Commission after incorporation, and needs a business permit and minimum capital if it wants expatriate quota or certain licences.