The Step-by-Step Guide to Registering Your Business Name With CAC (Under ₦20,000)

Starting a business in Nigeria is exciting. But making it official? That can feel confusing and expensive. Many entrepreneurs delay registration because they think it costs too much or involves too much stress.

Here is the truth: You can register your business name with the Corporate Affairs Commission (CAC) for under ₦20,000. The official CAC fee ranges from ₦10,000 to ₦20,000 for a Business Name registration .

In this guide, I will walk you through every single step. By the end, you will have your certificate and a fully legal business.

Part 1: Business Name vs. Company – What is the Difference?

Before we start, you need to choose the right structure.

There are two main options for small business owners in Nigeria: Business Name and Private Limited Company (Ltd) .

Business Name (Sole Proprietorship)

Best for: Freelancers, small shop owners, solo entrepreneurs, and side hustles.
Cost: ₦10,000 – ₦20,000 (Official CAC fees).
Legal status: You and the business are the same legally. You are personally responsible for debts.
Difficulty: Easy and fast to register.
Investors: Difficult to attract outside investors .

Private Limited Company (Ltd)

Best for: Businesses that plan to scale, get loans, or bring in partners.
Cost: Starting from ₦50,000 (plus legal fees).
Legal status: The business is a separate legal entity. Your personal assets are protected.
Difficulty: More complex registration process.
Investors: Easier to bring in investors .

Our focus: Since we are aiming for under ₦20,000, we will focus on the Business Name registration. This is perfect for 90% of new small businesses and freelancers in Nigeria.

Part 2: The Exact Cost Breakdown (Under ₦20,000)

Let me show you exactly where your money goes. There are no hidden fees if you do it yourself .

Item	Estimated Cost	Notes
Name Reservation Fee	₦500 – ₦1,000	Cost to check if your business name is available
Business Name Registration Fee	₦10,000 – ₦20,000	The main official fee for registration
Total (DIY via CAC Portal)	₦10,500 – ₦21,000	This is it.
Agent/Professional Fee (Optional)	₦30,000 – ₦70,000+	Only if you pay someone else to do it for you

Pro Tip: You can do this yourself. The CAC portal is designed for the average person. By following this guide, you will save the ₦30,000 – ₦50,000 professional fee.

Part 3: Step-by-Step Registration Process

The Corporate Affairs Commission (CAC) now uses an online portal called CRP 3.0. You do not need to visit any office.

Step 1: Visit the CAC Portal and Create an Account

Go to the official CAC registration portal: https://icrp.cac.gov.ng .
Click on "Login" at the top-right corner.
Click "Create an Account" (If you don't have one).
Fill in your personal details: Full Name, Email Address, and Phone Number.
Verify your email address using the One-Time Password (OTP) sent to your inbox .

Step 2: Reserve Your Business Name

You cannot register a name that someone else is already using.

On your Dashboard, click "Name Reservation" .
Click the "New Reservation" button.
Select Business Type: Choose "Business Name".
Select Classification: Choose "Sole Proprietorship" (if you are the only owner).
Enter your Proposed Name: Type the name you want (e.g., "Chidi's Bakery").
Select Nature of Business: Choose the category that fits your business (e.g., "Food & Beverages").
Click "Check Availability" .
If the name is available: Click "Continue" to proceed to payment.
If the name is unavailable: Try your second or third choice. The system will suggest alternatives if you are stuck .

Cost for this step: ~₦1,000.

Step 3: Make Payment

After your name is approved, you will be redirected to pay.

You will be taken to the Remita payment gateway.
Select your preferred payment method:
Card: Most debit cards work.
Bank Transfer: You can pay via USSD or online banking.
Complete the transaction.
Once payment is successful, your name is reserved instantly. You will receive an AV Code (Approval Validation Code). Do not lose this code. You will need it for the next step .

Step 4: Complete the Business Name Registration

Now that you have the name and the AV Code, you can complete the registration.

Go back to your Dashboard.
Click on "Registration" in the side menu.
Click "Register New Business" .
A pop-up will appear. Enter your AV Code (from Step 3).
Click "Continue" .

Step 5: Fill in Your Business and Proprietor Details

You will now fill out the forms. The CAC portal breaks this into sections:

Section A: Business Information

Enter your business email address.
Enter your business address (can be your home address if you work from home).
Select the date you started/plan to start the business.
Click "Save & Continue" .

Section B: Proprietor (Owner) Information

Fill in your personal details: Full name, Date of Birth, Nationality (Nigerian), Phone number.
Click "Save & Continue" .

Section C: Upload Documents
This is very important. You must upload clear images (JPEG or PNG) of:

Means of Identification: Valid ID card (National ID, Voter's Card, International Passport, or Driver's License) .
Passport Photograph: A recent passport photo (white background is best).
Signature: Sign a white paper, take a photo of it, and upload it .

Step 6: Preview, Pay, and Submit

Preview Page: Review all the information you have entered. Check for spelling errors. Mistakes here can delay your approval .
Click "Proceed to Payment" .
Pay the Registration Fee (₦10,000 – ₦20,000).
After payment, click "Submit" . Your application is now live!

Step 7: Track Your Application and Download Certificate

Return to your Dashboard.
Check the status of your application under "My Applications".

If "Pending": The AI or CAC officer is reviewing it. Refresh the page after a few minutes .
If "Queried": This means something is wrong. Click "Action" → "View Query History" to see the problem (e.g., "Blurry ID card"). Click "Modify Application" to fix it and resubmit .
If "Approved": Congratulations! Click "Action" → "Download Certificate" .

You will receive a Certificate of Business Name Registration. This is your proof that you are officially registered.

Part 4: What to Do After Registration (Crucial Steps)

Getting the certificate is not the final step. You need to do three more things to operate fully.

1. Register for Taxes (Get your TIN and VAT)

You cannot open a corporate bank account or bid for contracts without a Tax Identification Number (TIN).

Where to go: Federal Inland Revenue Service (FIRS) portal or a joint tax office.
What you need: Your CAC certificate and personal ID.
Cost: Usually free, but you need to register for VAT if you sell goods/services .

2. Open a Corporate Bank Account

Take your CAC certificate and TIN to any bank (GTBank, UBA, First Bank, etc.). Tell them you want to open a Business Account. Many banks have accounts with zero opening balance for小微 businesses.

3. Get Your Business Permit (If applicable)

Depending on what you sell, you might need extra permits:

Food & Drugs: You need NAFDAC registration .
Electronics/Imports: You need SONCAP from the Standard Organisation of Nigeria (SON).
Fintech: You need a license from the Central Bank of Nigeria (CBN) .

Part 5: Frequently Asked Questions (FAQ)

Q: Can a foreigner register a Business Name in Nigeria?
A: Generally, no. The Business Name registration is primarily for Nigerian citizens and residents. Foreigners usually need to register a Private Limited Company (Ltd) to operate in Nigeria .

Q: How long does the registration take?
A: If you submit all documents correctly and payment goes through, you can get your certificate in 1 to 3 working days. Same-day approval is possible with the new AI system .

Q: Why was my application "Queried"?
A: This usually happens because of bad image quality (blurry ID), incorrect data (wrong date of birth), or selecting the wrong business category. Check the "Query History" in your dashboard to see the exact reason .

Q: I heard there were new fees in 2026?
A: Yes, there have been recent adjustments. As of 2026, the name reservation fee is approximately ₦1,000, and registration is ₦10,000. However, there have been legal challenges regarding extra service charges, so ensure you check the final amount on the official Remita page before paying .

Conclusion

You do not need ₦100,000 or a lawyer to register your business in Nigeria.

For under ₦20,000, you can use the CAC CRP 3.0 portal to reserve your name, pay your fees, and download your certificate. It takes less than a week.

Your business idea is valid. Do not let the fear of paperwork stop you from making it official.

Are you planning to register your business name this month? Let me know in the comments if you have any questions about the process!