Starting a business in Nigeria involves several essential steps, one of the most important being registering your business with the Corporate Affairs Commission (CAC). This process gives your business legal recognition and helps you gain trust and credibility with clients and investors. However, understanding the costs associated with CAC registration can be confusing, especially with different fees for various business types and services.
In this article, we’ll break down the costs of CAC registration in 2024, explain the types of businesses you can register, and outline what’s included in each fee. This guide will help you budget effectively to get your business up and running!
Note: These fees might change depending on the CAC. It is also beneficial for your business/company to contact a professional corporate agency to ease the stress.
Types of Businesses You Can Register with CAC
Before we dive into the fees, let’s clarify the types of businesses you can register in Nigeria. Each business type has its unique purpose and legal requirements, which impact the registration cost:
- Business Name Registration: This type is ideal for sole proprietors or small businesses. It is simpler and more affordable, making it suitable for individuals or partnerships.
- Private Limited Company (Ltd): This is the most popular form of company for small to medium businesses in Nigeria. It protects limited liability and is ideal to separate personal assets from the business.
- Public Limited Company (PLC): Public companies are larger entities that can sell shares to the public. This registration type is more complex and expensive and requires stricter regulatory compliance.
- Incorporated Trustees: Non-profit organisations, religious bodies, and NGOs typically register as Incorporated Trustees. This registration provides the group with legal recognition and helps establish credibility.
CAC Registration Fees for 2024
The cost of CAC registration varies based on the type of business you’re registering. Here’s a detailed fee breakdown for each business category:
a) Business Name Registration
For sole proprietors or small partnerships, business name registration is a quick and budget-friendly option. Here’s what you can expect to pay:
- Basic Registration Fee: ₦10,000 (for business names without special approvals)
- Name Reservation: ₦500 (if you want to reserve your business name before registering)
- Additional Services (such as filing amendments or certified copies): Typically range from ₦1,000 to ₦5,000, depending on the service
Estimated Total for Business Name Registration: ₦10,500 to ₦15,000
b) Private Limited Company (Ltd) Registration
The fee for registering a Limited Liability Company (Ltd) depends on the company’s authorised share capital:
- ₦1 Million Share Capital or Less: ₦15,000 – ₦20,000 (includes name reservation and incorporation filing fees)
- ₦1 Million to ₦500 Million Share Capital: ₦5,000.00 for every N1million share capital or part thereof
- Over ₦5 Million Share Capital: CAC charges increase with higher share capital, often ranging from ₦50,000 and above, depending on the capital size.
Additional Fees: For services like filing amendments, changes to company particulars, or certified copies of documents, expect to pay between ₦2,000 and ₦10,000 per service.
Estimated Total for Private Limited Company Registration: ₦15,000 to ₦50,000+, depending on share capital.
c) Public Limited Company (PLC) Registration
Public companies require higher initial fees due to stricter regulatory compliance:
- ₦1 Million to ₦10 Million Share Capital: Registration fees can range from ₦50,000 to ₦100,000
- Over ₦10 Million Share Capital: Fees can go well over ₦100,000, depending on the company’s share capital
Additional Fees: Changes to company structure or details may incur extra fees, typically ₦5,000 or more per amendment.
Estimated Total for Public Limited Company Registration: ₦50,000 to ₦100,000+ for higher share capital
d) Incorporated Trustees Registration (for NGOs and Non-Profits)
Incorporated Trustee registration is designed for organisations that don’t operate for profit. Here are the standard fees:
- Registration Fee: ₦30,000 to ₦50,000
- Name Reservation: ₦500
- Additional Services: Amendments, certified copies, and other documentation range between ₦1,000 and ₦5,000 per service
Estimated Total for Incorporated Trustees Registration: ₦30,000 to ₦55,000, depending on extra services
Is There a Way to Save on CAC Registration Fees?
One of the easiest ways to save on CAC registration is by ensuring all your documents are accurate and complete before submission. Errors can lead to re-submission fees, which add up quickly. Additionally, some business owners opt for online registration via the CAC’s portal, which offers an efficient and more cost-effective process than in-person registration.
If you’re unsure about the process, hiring a legal professional or consulting a registration expert can be worth the extra upfront cost to avoid mistakes that might delay registration.
The Benefits of CAC Registration for Your Business
While CAC registration comes with costs, the benefits far outweigh them. Here’s why registering with the CAC is invaluable:
- Legal Recognition: A registered business is legally recognised, enhancing credibility and protecting your brand.
- Access to Bank Loans and Contracts: Many banks and institutions only offer loans and business contracts to registered entities.
- Intellectual Property Protection: Registering your business name helps protect it from use by others.
- Customer Trust: Clients and customers are more likely to trust and work with registered businesses, which can lead to greater opportunities.
Final Thoughts: Preparing for CAC Registration in 2024
Registering your business with the CAC is important for building a credible, trustworthy brand in Nigeria. Registration fees range from about ₦10,500 for a simple business name to over ₦100,000 for large public companies. Understanding these costs upfront helps you make informed decisions and budget effectively.If you’re ready to proceed with CAC registration, gather all the necessary documents, ensure they’re accurate, and consider consulting a professional. With the right preparation, you’ll have a smooth and successful registration, setting the foundation for your business’s future growth and success.