How to Start a Business in Nigeria From Idea to Registration

To start a business in Nigeria, you choose a legal structure, check and reserve a name, register with the Corporate Affairs Commission (CAC), get a Tax Identification Number (TIN) and then open a business bank account. A sole trader can register a business name, while a company needs its own registration and share capital. This guide walks through each step in order, with the rules and figures confirmed as of 22 October 2026. Our CMA9ja team updates guides like this as official rules change.

Many people wait until they feel fully ready, and that delay costs more than the registration itself. Most of the steps take a few days if your documents are in order.

Choose between a business name and a company

A business name suits most small traders, freelancers and sole operators. It is simple and cheap to set up, but the owner carries the business personally.

A company, usually a private limited liability company, creates a separate legal identity. Under the Companies and Allied Matters Act 2020, a private company needs a minimum share capital of ₦100,000, and a one person company is also allowed. Companies carry more paperwork, but they make it easier to bring in partners and investors.

Check and reserve your name

Search the name on the CAC portal first. A name must not be the same as an existing registered business, and some words are restricted and need approval or a higher fee.

Once you find a free name, reserve it. Based on secondary reports, a reservation lasts about 60 days, so complete your registration within that window. The CAC has revised its fee schedule several times since 2025, so check the current reservation fee on cac.gov.ng before you pay.

Register with the CAC

Registration is done online through the CAC portal. You will need:

1. A valid means of identification, such as your National Identification Number (NIN) or international passport.
2. A passport photograph.
3. The proposed business name, business address and a clear description of the activity.
4. The registration form for your structure, such as the BN1 form for a business name.

Upload your documents, pay the fee and download your certificate once it is approved. The CAC’s official schedule lists business name registration at ₦10,000, but the schedule has been revised, so confirm the figure before you pay.

Registering the business is the simple part, while the records you keep afterwards decide whether it can grow.

Get a TIN and register for tax

Every business needs a TIN under the tax laws that took effect on 1 January 2026. Secondary sources say the CAC registration number serves as a company’s TIN, and that individuals use their NIN. The tax authority is now the Nigeria Revenue Service, which replaced the Federal Inland Revenue Service (FIRS), so use its official channels when you register.

The Nigeria Tax Act 2025 offers a helpful exemption for small companies. A company can qualify if its annual turnover is ₦100 million or less and its fixed assets are below ₦250 million. Professional services such as legal, accounting, medical and consulting are excluded. Qualifying companies pay no companies income tax or capital gains tax, and they are exempt from the 4% development levy, but they must still file annual returns.

Open a business bank account

Banks usually ask for your CAC documents and your TIN before they open a corporate account. Ask your bank for its exact list of requirements before you visit, so you do not make several trips.

Check whether you need a sector licence

Some businesses need extra registration. For example, the Special Control Unit against Money Laundering (SCUML) supervises designated non financial businesses and professions. Its certificate is free, and it warns that paid agents are not authorised. Apply only through the official site.

Keep records from day one

• Keep a separate account for business money.
• Save every receipt and invoice in one folder, digital or paper.
• Record sales and expenses each week, not once a year.
• Keep a copy of your CAC certificate, TIN and bank details together.
• Update the CAC if your address or business activity changes.

Starting a business in Nigeria is more manageable when you take the steps in order. Choose the structure that fits your plans, register it correctly and keep clean records from the start. If you have a question about a step, contact us and we will help you find the right source.