Comprehensive Guide to CAC Registration Costs in Nigeria

Understanding CAC Registration

The Corporate Affairs Commission (CAC) serves as Nigeria’s regulatory body responsible for the registration and regulation of companies and businesses. Registering with the CAC grants your business legal recognition, enhances credibility, and ensures compliance with Nigerian laws.

Types of Business Registrations

Before delving into the costs, it’s essential to understand the various business structures you can register under the CAC:

• Business Name Registration: Ideal for sole proprietors or small partnerships, this registration is straightforward and cost-effective.
• Private Limited Company (Ltd): Suitable for small to medium-sized enterprises, offering limited liability protection to its shareholders.
• Public Limited Company (PLC): Designed for larger businesses intending to offer shares to the public.
• Incorporated Trustees: Typically for non-profit organizations, NGOs, religious bodies, and charitable foundations.

CAC Registration Fees Breakdown

The cost of registering a business with the CAC varies based on the business structure and share capital. Below is a detailed breakdown:

1. Business Name Registration

• Name Reservation: ₦500
• Registration Fee: ₦10,000
• Additional Services:
  • Change of Business Name: ₦5,000
  • Change of Business Address: ₦1,000
  • Annual Returns Filing: ₦1,000

2. Private Limited Company (Ltd) Registration

• Name Reservation: ₦500
• Registration Fees:
  • Share Capital up to ₦1,000,000: ₦10,000
  • Share Capital above ₦1,000,000 up to ₦500,000,000: ₦5,000 for every ₦1,000,000 or part thereof
  • Share Capital above ₦500,000,000: ₦7,500 for every ₦1,000,000 or part thereof
• Additional Services:
  • Change of Company Name: ₦20,000
  • Annual Returns Filing:
    • Small Company:
    • ₦5,000
    • Private Company (other than small): ₦5,000
    • Public Company: ₦10,000

3. Public Limited Company (PLC) Registration

• Name Reservation: ₦500
• Registration Fees:
  • Share Capital up to ₦1,000,000: ₦20,000
  • Share Capital above ₦1,000,000 up to ₦500,000,000: ₦10,000 for every ₦1,000,000 or part thereof.
  • Share Capital above ₦500,000,000: ₦15,000 for every ₦1,000,000 or part thereof.
• Additional Services:
  • Change of Company Name: ₦50,000
  • Annual Returns Filing: ₦10,000

4. Incorporated Trustees Registration

• Name Reservation: ₦500
• Registration Fee: ₦20,000
• Additional Services:
  • Change of Name: ₦10,000
  • Annual Returns Filing: ₦5,000

Additional Considerations

• Stamp Duty: In addition to CAC fees, stamp duties are applicable, typically calculated as a percentage of the share capital. For instance, the stamp duty for the first ₦1,000,000 share capital is ₦8,500, and ₦7,500 for each subsequent ₦1,000,000 or part thereof. citeturn0search0
• Professional Fees: Engaging legal practitioners or consultants for the registration process may incur additional costs, ranging from ₦50,000 to ₦500,000, depending on the complexity and nature of the services provided. citeturn0search8

Steps to Register Your Business with the CAC

1. Name Reservation: Submit a request to reserve your desired business name. Upon approval, the name is reserved for 60 days.
2. Complete Pre-Registration Forms: Fill out the necessary forms, providing details about the business, directors, shareholders, and registered address.
3. Pay Applicable Fees: Make payments for registration, stamp duty, and other related charges through the designated channels.
4. Prepare and Upload Required Documents: Gather essential documents, including identification for directors and shareholders, and upload them via the CAC portal.
5. Submit Application: After completing the forms and payments, submit your application for processing.
6. Obtain Certificate of Incorporation: Upon approval, the CAC will issue a Certificate of Incorporation, signifying the legal establishment of your business.

Benefits of Registering with the CAC

• Legal Recognition: Your business gains legal status, allowing it to operate within the confines of Nigerian law.
• Credibility: Registration enhances your business’s reputation among clients, investors, and financial institutions.
• Access to Opportunities: A registered business can bid for contracts, access loans, and engage in formal business activities