Business registration in Nigeria starts with the Corporate Affairs Commission (CAC). For many founders, the first decision is which legal structure suits the business.
Business name or limited company?
A registered business name is simple and inexpensive, and suits a sole proprietorship or small partnership where the owner and the business aren't legally separate. A limited liability company (Ltd) costs more to set up and maintain, but separates personal and business liability, and is generally required if you plan to raise investment, bid for contracts, or bring on shareholders.
What CAC typically requires
- A proposed business or company name, reserved and approved by CAC
- Details of the owner(s), director(s), and shareholder(s), with valid identification
- A registered business address
- For a limited company: a Memorandum and Articles of Association setting out share allocation and governance
Where founders usually go wrong
Problems often surface after registration: share allocations agreed verbally but never documented, a company registered in one person's name when the founders intended a partnership, or no agreement on what happens if a co-founder leaves.
Getting the structure right at registration is far simpler than restructuring an existing company later.
When to bring in a lawyer
A straightforward business name registration may not require legal help. When shareholders, investment, or multiple founders are involved, have a lawyer review the structure and shareholder agreement before registration. This can prevent avoidable disputes later.
Get help registering your business