Business Registration in Nigeria (2025): What It Costs, What It Takes, and Why You Shouldn’t Wing It

There’s no badge for hustling in silence anymore. If you’re building something, anything—with a name on it, whether it’s a bakery, a SaaS tool, or a tiny clothing brand running off WhatsApp, one question comes up sooner or later:

“Do I need to register this thing officially?”

In 2025, the answer is a loud yes. Because in Nigeria today, unregistered means invisible. And worse, you're building on unstable ground. Maybe you’ve even sold your first few items. Maybe clients keep asking for receipts. Or a bank just bounced your attempt to open a corporate account. It finally hits you: this thing needs to be recognized.

Now, you’re staring at CAC’s website. The steps seem easy. But then the jargon creeps in. “Objects of the company,” “share capital,” “TIN,” “trustees.” You try watching YouTube videos. Some say ₦20k. Others quote ₦150k. Everything contradicts everything.

That’s where most people freeze. And that’s the problem. Because registering your business in Nigeria in 2025 is simple—but only when you know what to expect. Most of the cost isn’t money. It’s time. And misinformation. And mistakes you didn’t know you were making.

This guide unpacks it clearly:

• How much it really costs

• What affects the pricing

• What steps to follow

• How long it takes

• What to do when it goes wrong

• And why this one move changes everything for your business

Let’s break it down.

Why Register Your Business in 2025?

Before the how, let’s talk why. Not the generic “legal recognition” fluff. Actual reasons:

• Your name isn’t yours until CAC says so. That catchy Instagram handle? Meaningless in court. Without legal registration, someone else can claim the name you built and lock you out of it.

• Business accounts are locked behind CAC and TIN. Banks now insist on documentation. Even fintechs are aligning. Using a personal account for business is now risky—and in many cases, flagged as suspicious.

• You can't run verified ads or open trade doors without it. Platforms like Meta and Google want legal proof. Government contracts? Forget it if you're not registered.

• You build trust instantly. Whether it’s customers, vendors, or funders—being registered signals that you're serious. It's the foundation that separates experiments from enterprises.

The Five Business Types in Nigeria You Can Register Today

1. Business Name (Sole Proprietorship)

   • Best for: Side hustlers, freelancers, artisans, or small traders.

   • Cost: ₦10,000 – ₦25,000

   • Fastest to register. Minimal paperwork. Tax-friendly but no legal separation between you and the business.

2. Limited Liability Company (Ltd)

   • Best for: Startups, tech companies, scaling businesses, or anything with co-founders.

   • Cost: From ₦50,000 upward, based on share capital.

   • You get corporate shielding (your assets are safe), but more structure is expected.

3. Public Limited Company (PLC)

   • Best for: Big businesses planning to list or scale nationwide with shareholders.

   • Cost: ₦500,000 and up

   • Heavier compliance. Not for early-stage founders.

4. Incorporated Trustees (NGO, Foundation)

   • Best for: Non-profits, churches, schools, community-based groups.

   • Cost: ₦50,000 – ₦200,000

   • More vetting involved. Trustees must be documented clearly.

5. Partnership

   • Best for: Two or more people starting a business together without forming a company.

   • Cost: ₦25,000 – ₦70,000

   • Shared liabilities, shared responsibilities.

Each structure affects how much you’ll pay, how long registration takes, and what documents you’ll need.

So How Much Does Business Registration Really Cost in 2025?

Let’s kill the idea of flat fees. Business registration doesn’t come at a fixed cost. It depends on:

• The structure you choose

• Whether you’re doing it yourself or using a consultant

• How fast you want it done

• And what state your documents are in

Here’s a breakdown of real-world costs (not CAC marketing numbers):

CAC Registration: Step-by-Step (And What Usually Goes Wrong)

Step 1: Search for Name Availability

Do this on the CAC portal (www.cac.gov.ng). The system now auto-suggests alternatives if yours is taken.

• Common problem: You pick one name, submit, and it gets rejected.
  Fix: Submit 2–3 variations at once. Add “Technologies,” “Services,” “Ventures” where needed.

Step 2: Reserve Your Name

Once approved, it holds for 60 days. Don’t let it expire—CAC won’t remind you.

Step 3: Fill Out Registration Forms

This includes your business type, object clause, address, owners’ details, and shareholding structure (if applicable).

• Common problem: Names don’t match IDs exactly.
  Fix: Use the exact name on your NIN, no shortcuts. Otherwise, CAC throws an error at submission.

Step 4: Upload Documents

For a Business Name: just IDs and passport photos.
For LTD: add CAC Form CAC 1.1, MoA (Memorandum & Articles), and means of ID for each director.

• Common problem: Wrong file format or unclear scans.
  Fix: Use PDF, not images. Ensure everything is legible.

Step 5: Pay Filing Fees

Use Remita or pay directly from the CAC portal. Save every receipt.

Common problem: Payment confirms but portal doesn’t move forward.
Fix: Open a support ticket and email CAC support. Attach proof of payment.

Step 6: Wait for CAC Approval

This can take 3–10 working days—or weeks if you get flagged for review.

• Common problem: No update after 2 weeks.
  Fix: Reach out to the customer care support lines, they have always proven helpful.

Step 7: Get Certificate + RC Number

Once approved, you’ll receive your Certificate of Incorporation and business number.

Step 8: Get TIN (Tax Identification Number)

Automatically assigned post-CAC, but for LTDs, you must register it actively with FIRS for VAT and tax filings.

How Long Does Business Registration Take in 2025?

• Business Name: 3–5 working days (if no hiccups)

• Limited Company: 7–14 working days

• Incorporated Trustees: 3–5 weeks

Realistic Buffer: Add 5 extra days if you’re not working with someone experienced.

Final Words

Registering your business in Nigeria in 2025 is no longer a bureaucratic hurdle. It’s your first investor pitch. Your first credibility check. Your first “I’m serious about this” moment.

Yes, the process can get clunky. Yes, costs are rising. But with the right preparation and a smart guide, you’ll get it done without wasting time or money.

So stop delaying. Protect your idea. Own your name. And put a foundation under what you’ve already started building.