How to Register a Business in Nigeria with CAC: A Guide for Online Sellers

To learn how to register a business in Nigeria, you apply to the Corporate Affairs Commission (CAC), the federal agency that registers business names and companies. For most small online sellers the choice is between a registered business name, which suits one owner or a few partners, and a private limited company, which is a separate legal entity. CAC registration is done online through the commission's portal, and the process involves checking that your name is available, filling in the application, uploading identification and paying the official fee. This guide explains CAC registration in plain language, the difference between a business name and a limited company, what CAC requirements usually include, and the steps after registration such as a tax identification number (TIN) and a business bank account. It is general information, not legal or tax advice, and rules and fees change, so confirm everything on the CAC website before you start.

Why register an online business?

You can register online business Nigeria wide from your phone or laptop, because CAC runs its registration process through an online portal.

Many sellers begin informally, and that is understandable when you are testing an idea. Registration is not a magic switch for sales, but it can help in several ways:

It gives your business a recognised name and a certificate you can show to buyers, suppliers and partners.
Banks usually ask for registration documents before opening a business account.
Larger buyers, marketplaces and some lenders often prefer to deal with registered businesses.
It helps you separate business and personal money and keep better records.
Exporters and manufacturers need a registered company for several trade processes; see our guide on how to export from Nigeria.

If you have not started selling yet, read our beginner guide on starting an online business in Nigeria with little capital first. You can test your idea before you pay for registration.

Business name vs limited company

CAC registration comes in several forms. The two most common for small sellers are described below. Check CAC for other types such as partnerships, incorporated trustees and public companies.

Registered business name

A business name registration is the simpler route for a sole proprietor or a small partnership trading under a name other than the owner's own. It is quicker and cheaper to set up, with lighter reporting obligations. The main limitation is that the business is not a separate legal person from its owner, so the owner is generally personally responsible for the business's debts. Some larger contracts or investors may prefer a company.

Private limited company

A private limited company is a separate legal entity from its owners. Under Nigeria's company law, a company has shareholders and directors, a share capital figure, and ongoing duties such as filing annual returns. It can be a better fit if you plan to bring in investors, hire several staff, bid for bigger contracts or limit personal exposure. It involves more paperwork and typically higher costs than a business name. Recent company law changes made it possible for a company to be formed by a single person, but confirm the current rules with CAC or a qualified adviser.

A practical way to choose: if you are selling alone or with one partner, with modest volumes, a business name is often enough to start. If you expect investors, large contracts or want separation between you and the business, a limited company may suit you better. A lawyer, chartered secretary or accountant can advise on your situation.

CAC requirements: what you will usually need

Exact requirements depend on the type of registration and can change, so use this as a preparation checklist and confirm the current list on the CAC website.

Proposed business name: have a first choice and a few alternatives. Names that are too similar to existing ones, or that suggest a regulated activity, can be rejected.
Nature of business: a short description of what the business does. If you may export or do several activities, think about describing them properly now.
Owner or director details: full names, date of birth, residential address, phone number and email.
Valid identification: commonly a National Identification Number (NIN) or other accepted ID, such as a passport or driver's licence, for each proprietor or director. Have clear digital copies.
Passport photographs: some applications ask for these in digital form.
Business address: where the business is carried on or registered.
For companies: share capital details, the number of shares each person takes, and the names of directors, shareholders and sometimes a company secretary where required.
Payment of the official fee: CAC publishes a fee schedule, and some government programmes for small businesses sometimes reduce or waive fees. Check the fees page rather than trusting a figure from a social media post.

How to register online step by step

CAC says registration for business names can be done online through its portal and that individuals can do it without hiring a lawyer or accountant. The general flow looks like this. Screens and names of forms can change, so follow the portal's current instructions.

Search your name. Use the name checker on the CAC website to see whether your preferred name is available.
Create an account on the CAC online portal with a working email address and phone number.
Reserve or submit your name as the portal directs. Reserved names usually hold for a limited period, so be ready to complete the process.
Fill in the application form with the owner or director details and nature of business.
Upload your documents such as ID and photographs.
Pay the fee through the payment options on the portal, and keep your receipt.
Submit and track your application. CAC may query information, so check your email regularly.
Download your certificate when approved, and save copies safely.

How long approval takes depends on the type of application and on CAC's workload, so we do not promise a timeline. CAC publishes service timelines on its website; check that page for the current standard.

Beware of fake agents and look-alike websites. Use the official CAC site, check the web address carefully and be wary of anyone who asks you to pay into a personal account. If you use an accredited professional to help you, ask for their credentials and a written fee. Our guide on how to avoid scams as an online seller or buyer in Africa shows warning signs to watch for.

After registration: TIN and business account

Tax identification number (TIN)

Businesses are generally expected to have a tax identification number, and Nigeria's tax laws and administration have been changing, including rules about who must register and how. Confirm the current process with the federal tax authority and your state revenue service. Tax rules and thresholds, including any small-company exemptions, are specialist topics. Speak to a qualified tax adviser before you decide what to file and pay.

Business bank account

Take your CAC certificate, your IDs, your TIN if required and proof of address to the bank, and ask what documents they need. Account requirements differ by bank and by whether you registered a business name or a company. Keep business money separate from personal money. It makes record keeping, taxes and any future loan application easier. For simple record keeping habits, see our article on inventory management for small shops and online sellers.

Other permits

Depending on what you sell, other approvals may apply. Food, drugs, cosmetics and some imported goods are regulated by other agencies, and your state or local government may have business premises or signage rules. Ask the relevant agencies, and do not assume CAC registration alone covers everything.

Mistakes to avoid

Choosing a name before checking whether it is available or already used by a well-known brand.
Entering details that do not match your ID, which can cause delays.
Using a limited-scope business description when you plan to expand into other activities.
Paying unofficial agents or sending money to personal accounts.
Forgetting annual filing duties after registration. Registered entities have ongoing obligations, so ask CAC or an adviser what applies to you.
Losing your login details and certificate copies.

How registration helps with buyers and customer disputes

Customers feel safer when they can see a real business name, address and contact details. Registration alone does not make a seller trustworthy, but it supports other signals like clear policies, consistent delivery and fast answers. Good handling of complaints matters just as much; see our guide to handling returns, refunds and complaints. For B2B sellers, a registered company is part of looking credible to larger buyers, as explained in how to build buyer trust as a verified supplier.

Frequently asked questions

Do I have to register to sell online in Nigeria? Rules depend on your activity and scale, and we cannot give legal advice. Many sellers register as they grow because banks and bigger buyers expect it. Confirm your obligations with CAC or an adviser.

What is the difference between a business name and a limited company? A business name usually suits one owner or partners and is simpler. A limited company is a separate legal entity with shareholders and directors, and more reporting duties.

How much does CAC registration cost? Fees depend on the type of registration and, for companies, on share capital. CAC publishes a fee schedule, so check the official fees page for the current amount.

How long does it take? It varies. Check CAC's service timelines page and expect that queries or incomplete documents will slow things down.

Do I need a TIN after registering? Businesses are generally expected to have one, but the rules have been changing. Confirm with the tax authority or an adviser.

Can I register without a lawyer? For business names, CAC states that individuals can register without a lawyer, accountant or chartered secretary. For companies, check whether a professional is required in your case.

Getting started

Prepare your name options, ID copies and a short description of your business, then visit the official CAC website to begin. Once you are registered, a clear business profile helps you stand out. You can create a free Comilmart account and apply to sell; there are no listing fees to get started, and the seller policy explains what sellers are expected to do.