How Much It Costs to Register a Business with the CAC (2026)
Registering with the CAC is more affordable than most people think — and right now it can be free. Here's the honest breakdown of what a business name and a limited company actually cost in 2026, plus the fees people forget to budget for.
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 (DIY) costs roughly ₦11,700 in total. From 1 April 2026, the CAC added an "AI service charge": about ₦200 for name reservation and ₦500 on the business-name registration, on top of the base fee.
If you use an accredited agent instead of doing it yourself, add their professional fee (varies).
Limited company — priced on your share capital
A limited company costs more, and the main driver is your share capital:
- ₦8,500 stamp duty on the first ₦1,000,000 of share capital.
- 0.75% on each additional ₦1,000,000 of share capital.
- Plus name reservation and the CAC filing/service charges.
- Plus, usually, an accredited agent or lawyer's fee (companies are more complex to file than a business name).
So a company registered with ₦1m share capital costs far less than one registered with ₦10m — pick a share capital that fits your real needs, not a vanity figure.
Fees people forget to budget for
- Name reservation (before the main registration).
- Accredited agent / lawyer fee if you don't file yourself.
- Post-registration: a company must file annual returns with the CAC — a recurring cost a business name largely avoids.
The cheapest path, in order
- Check the free SMEDAN scheme first — a free business name if you qualify.
- If not eligible, register the business name yourself on the CAC portal (~₦11.7k).
- Only register a limited company if you need limited liability or credibility — see business name vs limited company.
After registration
Your CAC number becomes your business Tax ID (how to get a TIN), and opens the door to government funding schemes and business loans.
Frequently asked questions
How much does it cost to register a business name? Around ₦11,700 DIY in 2026 (plus the new CAC service charges) — or free under the FG/SMEDAN MSME scheme if you qualify.
Why does a company cost more? Its fee is based on share capital (₦8,500 on the first ₦1m, then 0.75% per extra million), plus filing and usually an agent's fee, and it has ongoing annual returns.
Do I need a lawyer to register? Not for a business name — you can DIY. A limited company is more complex and many people use an accredited agent.
Educational information, not legal advice. CAC fees change (a new service charge took effect April 2026) — confirm the current schedule with the CAC before paying.
