Starting a business in Nigeria in 2025 requires more than just a bright idea or capital. It also demands an understanding of the legal framework that governs business formation and compliance. One of the most important steps you must take as a prospective business owner is to formally register your company with the Corporate Affairs Commission (CAC), the statutory body responsible for regulating the formation and management of companies in Nigeria.
Among the various types of business entities available under Nigerian law, a Limited Liability Company (LLC) remains the most popular and investor-friendly structure. It offers protection to its owners (shareholders) by limiting their personal liability to the amount they have invested in the company. This makes it a preferred choice for startups, SMEs, and even large-scale enterprises.
In this comprehensive guide, we will walk you through the key steps required to register a Limited Liability Company with the CAC in 2025. Whether you’re an entrepreneur looking to launch a new venture or a foreign investor hoping to set up operations in Nigeria, this guide will provide a clear and practical road map to help you get started the right way.
Table of Contents
1. Understanding the Nature of Your Business
Before you begin the process of registration, it’s essential to clearly define the nature of your business. This refers to the specific type of goods or services your company will provide, your target market, and the industries it will serve.
This step is not just administrative; it also influences various aspects of the registration process, such as your company name, the applicable licenses, and sometimes even your share capital threshold. For example, a company that intends to operate as a financial institution may require approvals from regulatory bodies like the Central Bank of Nigeria (CBN), in addition to CAC registration.
It is always advised to conduct proper research, consult with professionals, and evaluate the legal and regulatory implications of your chosen business line. Understanding the nature of your business at this early stage lays the foundation for a smoother registration process and successful operation down the line.
2. Deciding on the Share Capital
The next key decision to make is the share capital of the company. Share capital represents the amount of capital the company intends to raise by issuing shares to its shareholders.
In Nigeria, the minimum share capital for a private limited liability company is ₦100,000, but depending on your business activities, you may be required to register a higher amount.
For instance:
- Companies that intend to participate in sectors like banking, finance, insurance, or capital market may require a much higher share capital prescribed by the various regulatory bodies.
- Businesses applying for certain licenses, such as those regulated by the Nigerian Communications Commission (NCC) or Nigerian Electricity Regulatory Commission (NERC), may have prescribed minimum share capital requirements.
Another reason to carefully consider your share capital is ownership and control. Share capital is typically divided among shareholders, and the amount of shares held determines voting power and profit-sharing rights. Therefore, it is important to strike a balance between meeting regulatory thresholds and maintaining a desired ownership structure.
3. Registration Requirements
a. Name Reservation
The first official step is to reserve your company name through the CAC’s online portal (https://icrp.cac.gov.ng). You are expected to submit one proposed name at a time (previously, you had to submit two names). The CAC will check their availability and approve if the name meets the guidelines.
Tips for Name Reservation:
- Avoid generic or common names.
- Do not use prohibited terms (e.g., national, federal, or names of existing corporations).
- If your name includes restricted terms like “group”, “holdings”, or “trust”, you will be required to apply for consent to be eligible to use such terms.
The name reservation process is instant (previously, it took 24–48 hours), and once approved, the name is held for 60 days within which you must complete your registration.
b. Preparing Incorporation Documents
Once your name is reserved, you’ll need to prepare the following core incorporation details and documents:
- Memorandum and Articles of Association (MEMART) – This outlines the company’s objectives and the internal rules for management.
- Company Details:
- Address of the company
- Phone number
- Email address
- Number of Officials:
- Directors: At least 1 director for small companies, and 2 directors for others.
- Shareholders: No prescribed number for private companies; 2 for public companies.
- Secretary: Private companies are not mandated to appoint a secretary, but public companies are required to appoint a company secretary that meets the criteria prescribed in section 332 of CAMA.
- Bio-data of the Directors, Shareholder, Secretary, and Witness:
- First name, middle name, surname
- Phone number
- Email address
- Home address
- Documentations of the Directors, Shareholder, Secretary, and Witness:
- Signature
- ID card of the company official(s)
- Statement of Share Capital and Return of Allotment – Indicates the number and value of shares allotted to each shareholder.
c. Filing with the CAC Portal
With all documents ready, proceed to upload and submit them via the CAC’s Intelligent Company Registration Portal (ICRP). You’ll be required to fill in key company information as mentioned above.
d. Payment of Registration Fees
The CAC charges a fee based on the company’s authorized share capital. Likewise, stamp duties, which go to the FIRS, are charged based on the company’s authorized share capital.
Payment is made online through the CAC portal, and once confirmed, your application will move to the final approval stage.
e. Issuance of Certificate and Other Post-Incorporation Documents
If everything is in order, the CAC will process your application and issue the following documents:
- Certificate of Incorporation
- MEMART (Certified Copy)
- Status Report showing company details
- Tax Identification Number (TIN) – This is now automatically generated upon incorporation.
With these documents, your company becomes a legal entity, capable of owning property, entering into contracts, opening bank accounts, and doing business in Nigeria.
4. Conclusion
Registering a Limited Liability Company in Nigeria in 2025 is a structured process, but it need not be overwhelming. With the newly introduced AI portal and the ease of online registration, starting your business has never been more accessible. However, attention to detail remains key, especially in choosing your company name, setting appropriate share capital, and preparing compliant documentation.
Importantly, while incorporation is a legal milestone, it’s only the first step. You’ll still need to comply with tax, regulatory, and operational requirements to remain in good standing. For this reason, many entrepreneurs find it helpful to work with legal and compliance professionals throughout the life cycle of the business.
5. Frequently Asked Questions (FAQs)
1. Can I register my business with CAC by myself?
Yes, individuals can register their business through the CAC online portal. However, working with a professional can help you avoid common errors, ensure compliance, and speed up the process.
2. What is the difference between a Business Name and a Company?
A Business Name (usually used for sole proprietors and partnerships) has no legal personality, meaning the owner is personally liable for the business. A Company (Limited Liability) is a separate legal entity, offering liability protection to its shareholders.
3. How long does CAC registration take in 2025?
Timelines vary based on the type of registration. Business Names can take 3–5 working days, Companies about 3–7 working days, while Incorporated Trustees may take 6–8 weeks due to extra steps like newspaper publications and trustee verification.
Are You Ready To Set Up Your Next Company?
Are you ready to take the next step in your entrepreneurial journey? Whether you’re registering your first company or restructuring an existing business, our team of experienced corporate and commercial lawyers can help you navigate the CAC registration process with ease and compliance.
Let’s get your registration started today—reach out now and take the first step toward legalizing your dream.
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Disclaimer
This publication has been prepared for general guidance only and does not constitute legal advice. You should not act upon the information contained herein without obtaining specific professional advice. For tailored advice, kindly contact us.
WRITTEN BY:
OGHENEYOMA E. IBUJE LL.B, B.L, ACIS
Legal Associate
TCorporate Legal Advisory