Professional Service Cost Comparison

Additional Costs to Consider

Beyond the basic registration fee, factor in these potential expenses:

• Stamp Duty: ₦500 for affidavit of compliance
• Notarization: ₦1,000 – ₦2,000 for required documents
• Travel Costs: Transportation to CAC offices (varies by location)
• Photocopying: ₦200 – ₦500 for document copies

Real-World Example: Adaora, a fashion designer in Lagos, registered her business name “Adaora’s Couture” through an online platform. Her total cost was ₦22,500, including CAC fees, professional service, and document preparation. The convenience was worth the extra cost as she could focus on her business while the registration was handled professionally.

Requirements for Business Name Registration

Preparation is half the battle won. Having the right documents ready prevents delays and additional costs. Here’s your complete checklist:

Essential Documents

For Individual Proprietorship:

• Completed CAC Form BN-1
• Copy of valid ID (National ID, Driver’s License, or Voter’s Card)
• Passport photograph of the proprietor
• Letter of consent from property owner (if business premises is rented)
• Affidavit of compliance (sworn before a court or notary public)

For Partnerships:

• Completed CAC Form BN-2
• Partnership agreement (if any)
• Valid ID copies of all partners
• Passport photographs of all partners
• Consent letter for business premises

Name Selection Guidelines

Your business name must comply with CAC guidelines to avoid rejection:

Acceptable Names:

• Unique and not similar to existing registered names
• Reflects the nature of your business
• Does not contain offensive or inappropriate words
• Maximum of 100 characters including spaces

Names to Avoid:

• Names suggesting government affiliation without approval
• Names identical to well-known trademarks
• Names containing words like “Federal,” “National,” or “Royal”
• Names with religious connotations without proper authorization

Step-by-Step Registration Procedure

The registration process has been digitized, making it faster and more convenient. Here’s your roadmap:

Online Registration Process

Step 1: Name Search and Reservation

• Visit the CAC website (www.cac.gov.ng)
• Create an account if you don’t have one
• Search for your desired business name
• Reserve the name if available (₦500 fee)

Step 2: Complete Application

• Fill out the appropriate form (BN-1 or BN-2)
• Upload required documents in PDF format
• Pay the registration fee (₦10,000)
• Submit the application

Step 3: Document Verification

• CAC reviews your application within 24-48 hours
• You’ll receive an email notification about the status
• Address any queries or corrections if needed

Step 4: Certificate Collection

• Download your certificate of business name registration
• Order certified true copies if needed
• Update your business records accordingly

Physical Registration Alternative

If you prefer in-person registration, visit any CAC office with your documents. The process takes 2-3 days but allows for immediate query resolution.

Quick Scenario: Imagine you’re launching a tech startup called “NaijaCode Solutions.” You discover the name is available, reserve it online, complete the BN-1 form, upload your documents, and pay ₦10,500. Within 48 hours, you have your business registration certificate. What seemed complicated becomes straightforward with proper preparation.

Common Mistakes to Avoid During Registration

Learning from others’ mistakes saves time and money. Here are the most frequent pitfalls:

1. Inadequate Name Research

Many entrepreneurs skip thorough name searches, leading to rejections. Solution: Use CAC’s online search tool and consider hiring a professional for comprehensive trademark searches.

2. Incorrect Document Formatting

Uploading documents in wrong formats or poor quality causes delays. Solution: Ensure all documents are clear, PDF format, and under 2MB each.

3. Incomplete Information

Missing details in forms lead to rejections. Solution: Double-check all fields and have someone review your application before submission.

4. Ignoring Business Structure Implications

Choosing the wrong business structure affects future operations. Solution: Consult with a business advisor to determine the best structure for your needs.

5. Delayed Compliance Requirements

Forgetting post-registration requirements creates legal issues. Solution: Set reminders for annual returns and other compliance obligations.

Case Study: Emeka registered “Lagos Fresh Foods” but failed to file annual returns for three years. When he tried to secure a major supply contract, he discovered his business name was struck off the register. He had to pay penalties and re-register, costing him the contract and additional fees of ₦50,000.

Factors Affecting Registration Costs

Understanding cost variables helps you budget accurately and make informed decisions.

Geographic Location Impact

Registration costs vary slightly by location due to different service providers and operational expenses:

• Lagos/Abuja: Higher professional fees (₦25,000-₦50,000)
• Port Harcourt/Kano: Moderate fees (₦20,000-₦35,000)
• Smaller cities: Lower fees (₦15,000-₦25,000)

Business Complexity

Simple sole proprietorships cost less than complex partnerships with multiple stakeholders. Additional complexity factors include:

• Number of partners or directors
• Special licensing requirements
• International ownership structures
• Multiple business locations

Service Provider Choice

Your choice of service provider significantly impacts total costs:

DIY Registration: Most economical but requires time and effort
Online Platforms: Balanced cost and convenience
Traditional Law Firms: Highest cost but comprehensive service
CAC Agents: Moderate cost with local expertise

Pro Tip: For first-time entrepreneurs, consider using online platforms that offer guided assistance without the premium of full legal services.

Your Business Registration Roadmap

Ready to transform your business idea into a legally recognized entity? Here’s your practical action plan:

Week 1: Foundation Setting

• Conduct thorough market research for your business name
• Gather all required documents and ensure they’re properly formatted
• Create your CAC online account and familiarize yourself with the platform
• Budget ₦15,000-₦25,000 for the complete process

Week 2: Name Reservation and Application

• Search and reserve your preferred business name
• Complete the appropriate registration form carefully
• Upload all documents and pay required fees
• Submit your application and track its progress

Week 3: Follow-up and Completion

• Respond promptly to any CAC queries or requests
• Download your certificate once approved
• Set up compliance reminders for annual returns
• Begin using your registered business name officially

Long-term Success Strategy:
Consider business registration as the first step in building a scalable enterprise. The ₦10,000 CAC fee is an investment that opens doors to contracts worth millions, banking relationships, and partnership opportunities that would otherwise be impossible.

As Nigeria’s economy continues digitalizing and formalizing, businesses without proper registration face increasing barriers to growth. Government initiatives increasingly favor registered businesses for contracts, grants, and support programs.

What’s your next move after registration? Will you leverage your new legal status to pursue larger contracts, establish banking relationships, or explore partnership opportunities that were previously out of reach?

Frequently Asked Questions

How long does business name registration take in Nigeria?

Online registration typically takes 24-48 hours once you submit complete, accurate documents. Physical applications at CAC offices may take 2-3 business days. The key is ensuring all documents are properly prepared and formatted before submission to avoid delays.

Can I register my business name online from anywhere in Nigeria?

Yes, CAC’s online platform allows registration from anywhere in Nigeria with internet access. You don’t need to visit a CAC office physically. However, you may need to visit for document notarization or if you encounter specific issues during the online process.

What happens if my chosen business name is already taken?

If your preferred name is unavailable, CAC’s system will notify you during the search process. You’ll need to choose an alternative name. Consider variations of your original name or use synonyms that maintain your brand identity while meeting availability requirements.

Article reviewed by Sophie Dubois, Luxury Real Estate Agent | Helping Clients Find High-End Properties, on June 16, 2025