How to Register a Business in Nigeria (CAC Registration Explained)

Every legitimate business in Nigeria has to be registered with the Corporate Affairs Commission (CAC) — it's what turns "a thing you do to make money" into a recognised legal entity that can open a business bank account, sign contracts, and be taken seriously by clients and partners. Here's what that actually involves.

Business Name vs. Limited Company — Which Do You Need?

This is the first decision, and it matters more than most people realise.

• Business Name (BN) — the simpler, cheaper option. You (or you and a partner) register a trading name. There's no separation between you and the business legally — you're personally liable for its debts and obligations. Fastest to set up, fine for freelancers, small traders, and sole proprietors.
• Limited Company (Ltd/RC) — creates a separate legal entity from its owners. Shareholders' liability is limited to what they've invested. Needed if you want to raise investment, bring in shareholders, or simply want the legal separation between you and the business. More paperwork, higher cost, but the standard choice once a business is past its earliest stage.

Neither is "better" — they suit different situations. A one-person consulting practice rarely needs the complexity of a Limited Company. A startup planning to raise money from investors needs one from day one, because investors generally can't take equity in a Business Name.

What You Need Before You Start

• Two proposed names, in order of preference (CAC checks availability and can reject names too similar to an existing one)
• A valid means of identification (National ID, international passport, or driver's license) for every proprietor/director
• A passport photograph for each proprietor/director
• A registered business address
• For a Limited Company: at least one director and one shareholder (can be the same person), and details of share allocation

The Registration Process

1. Name reservation — submit your proposed name(s) via the CAC portal (post.cac.gov.ng) for availability check and reservation, valid for 60 days.
2. Complete the registration form — Form CAC-BN1 for a Business Name, or the incorporation forms (including CAC-IT1) for a Limited Company.
3. Upload documents — ID, passport photograph, and (for a Limited Company) your Memorandum and Articles of Association.
4. Pay the CAC fee — varies by structure and, for a Limited Company, by share capital.
5. Receive your certificate — a Business Name typically takes a few days; a Limited Company can take longer depending on CAC's processing volume.

What You Get at the End

A Business Name registration gives you a BN number and a status report you can print — this is what most banks accept to open a business account. A Limited Company registration gives you an RC number, a Certificate of Incorporation, and your Memorandum & Articles — the fuller legal identity a growing business needs.

A note from experience: Pandas LP itself is registered as a Business Name (BN 9646741), not a Limited Company — for a firm at our stage, that was the right call, and it's worth genuinely thinking through which structure fits your business rather than defaulting to whichever sounds more official.

Common Mistakes

• Choosing a name too similar to an existing registered business — wastes the reservation and delays everything
• Registering a Business Name when you actually need investor-ready structure, then having to convert later
• Using a residential address that later causes issues opening a business bank account
• Missing the 60-day name reservation window and having to start over

Register with Pandas LP

Our CAC Registration Agent walks you through the choice between a Business Name and a Limited Company, prepares your CAC forms, and guides you through submission — from ₦15,000.