How Much It Costs to Register a Business with the CAC (2026)

Registering with the CAC is more affordable than most people think — and for some businesses it is currently free. Here is the honest breakdown of what a business name and a limited company actually cost in 2026, the fees people forget to budget for, and the one decision that quietly drives the whole bill.

It might be free for you. Micro and small businesses can register a business name at no cost under the FG/SMEDAN scheme — check free CAC registration before you pay anything.

Business name — the cheapest option

Registering a business name yourself is the cheap route. Published figures differ slightly by source and by how much they bundle in, but the shape is:

• CAC fee in the region of ₦10,000, with DIY all-in totals commonly quoted around ₦11,700.
• From 1 April 2026, the CAC added an "AI service charge" — about ₦200 on name reservation and ₦500 on the business-name registration, on top of the base fee.
• A realistic all-in budget of ₦15,000–₦35,000 if you use an accredited agent and include stamp duty and first-year compliance.

If you file it yourself on the CAC portal, you are at the bottom of that range. The gap between DIY and agent-assisted is mostly the agent's professional fee, which is a convenience, not a requirement.

Limited company — priced on your share capital

A limited company costs more, and the main driver is a number you choose yourself:

• A CAC filing fee in the region of ₦30,000.
• Stamp duty on share capital: about ₦8,500 on the first ₦1,000,000, then roughly 0.75% on each additional ₦1,000,000.
• Plus name reservation and the CAC's service charges.
• Plus, usually, an accredited agent or lawyer's fee — companies are more complex to file than a business name.

Indicative totals: registering with ₦100,000 authorised share capital costs roughly ₦30,000–₦35,000 DIY, or commonly ₦60,000–₦100,000 through an accredited agent.

The decision that drives your bill

Because stamp duty scales with share capital, the capital figure you declare is the single biggest lever on your cost. A company declaring ₦10 million of share capital pays substantially more than one declaring ₦1 million, for exactly the same registration.

People inflate this figure because it sounds impressive to clients or because someone told them a bigger number looks better for loans. It does not. Lenders look at your bank statements and trading history, not your authorised capital. Declare what the business actually needs, and increase it later if you ever genuinely need to.

Fees people forget to budget for

• Name reservation, payable before the main registration — and payable again if your first choice is rejected, so check availability properly first.
• Accredited agent or lawyer's fee if you do not file yourself.
• Stamp duty, which is separate from the CAC's own fee.
• Post-registration compliance: a company must file annual returns with the CAC, and a business name must be kept current. This is a recurring cost that people budget for once and then forget, and penalties for missed filings add up.
• Sector licences, which CAC registration does not provide. Food, transport, financial services and several other activities need their own permits.

The cheapest path, in order

1. Check the free SMEDAN scheme first — a free business name if you qualify, and there is no reason to pay if you do.
2. If you are not eligible, register the business name yourself on the CAC portal rather than through an agent.
3. Only register a limited company if you actually need limited liability, want to raise money, or are dealing with clients who require an RC number — see business name vs limited company.
4. Declare a sensible share capital if you do go the company route.

Avoid the "agent" trap

Registration is a service you can buy, and legitimate accredited agents do useful work. But two things are worth knowing:

• The free MSME scheme is free. Anyone charging a "processing fee" to get you onto it is charging for something the government is giving away.
• Your Tax ID is also free and takes minutes — see how to get a TIN. It is a common upsell.

Pay for help with a complex company filing if you want it. Do not pay for access to free things.

After registration

Your CAC number becomes your business Tax ID — see how to get a TIN — and unlocks a corporate bank account, government funding schemes and business loans.

Open the business account straight away and run everything through it. Every lender you approach later will want 6–12 months of business bank statements, and that clock only starts when the account does.

Frequently asked questions

How much does it cost to register a business name in Nigeria? Roughly ₦10,000–₦12,000 filing it yourself, including the CAC's 2026 AI service charge, with all-in budgets of ₦15,000–₦35,000 if you use an agent. It may be free under the SMEDAN scheme.

How much does a limited company cost? Around ₦30,000 in CAC fees plus stamp duty — ₦8,500 on the first ₦1m of share capital and about 0.75% per additional million. DIY totals at modest capital run ₦30,000–₦35,000; agent-assisted, ₦60,000–₦100,000.

Why does share capital affect the price? Stamp duty is charged on the share capital you declare, so a larger declared capital costs more to register. Declare what you need.

What is the CAC AI service charge? An additional charge introduced from 1 April 2026 — about ₦200 on name reservation and ₦500 on business-name registration.

Do I need an agent? No. DIY registration on the CAC portal is materially cheaper; an agent is optional.

Educational information, not legal advice. CAC fees change and sources differ — confirm the current schedule with the CAC or an accredited agent before registering.