Cost of Business Registration by Cooperate Affairs Commission (CAC) in Nigeria
This article contains the essential details of registering your business with Cooperate Affairs Commission (CAC) in Nigeria, including a breakdown of fees and what to expect throughout the process. Kindly read on to gain more clarity on the costs involved to ensure a smooth start to your entrepreneurial journey.
The CAC imposes various fees for different aspects of company registration, which can significantly impact your financial planning.
You might also want to check How to Register Your Business with CAC
These fees vary depending on factors such as the type of business (e.g., private company, public company, business name), the share capital involved, and the services required.
The cost typically includes charges for name reservation, filing of registration forms, stamp duties, and other related services.
This article aims to provide a detailed breakdown of these fees, offering clarity and insight into the expenses you may encounter when registering a company in Nigeria.
Whether you’re a new entrepreneur or an established business owner seeking to formalize your operations, understanding these costs will help you in the registration process.
The table below shows the breakdown of Cooperate Affairs Commission CAC fees for business registration in Nigeria:
| S/N | SUBJECT | FEES |
|---|---|---|
| 1 | Reservation of Company Name | ₦500 |
| 2 | Registration of Private Company with Share Capital up to ₦1 million | ₦10,000 |
| 3 | Registration of Private Company with Share Capital between ₦1 million and ₦500 million | ₦5,000 for every ₦1 million share capital or part thereof |
| 4 | Registration of Private Company with Share Capital above ₦500 million | ₦7,500 for each ₦1 million share capital or part thereof |
| 5 | Registration of Public Company with Share Capital up to ₦1 million | ₦20,000 |
| 6 | Registration of Public Company with Share Capital between ₦1 million and ₦500 million | ₦10,000 for every ₦1 million share capital or part thereof |
| 7 | Registration of Public Company with Share Capital above ₦500 million | ₦15,000 for every ₦1 million share capital or part thereof |
| 8 | Registration of a Company without Share Capital | ₦20,000 |
| 9 | Filing of Notice of Exemption of a Foreign Company from Registration | ₦30,000 |
FAQs
How long does it take to register a company with CAC?
The registration process typically takes between seven to twenty-one working days (7 – 21 days). However, the duration may vary depending on factors such as the workload at the CAC and whether you’re using an agent or doing it yourself.
What are the basic requirements to register a business in Nigeria?
To register a company in Nigeria, you need:
- 2 to 50 founding members, each of legal age (at least 18 years old).
- Members must be of sound mind, qualified by the Companies and Allied Matters Act (CAMA), and not bankrupt.
- A minimum share capital of ₦10,000.
What are the steps involved in registering a business with Cooperate Affairs Commission (CAC)?
The steps include:
- Selecting and registering a name for your company.
- Drafting the Memorandum of Association (MOA).
- Completing the pre-registration form provided by the CAC.
- Paying stamp duty and filing fees at designated banks.
- Scanning and uploading your documents online via the CAC portal.
What documents are required to register a company with Cooperate Affairs Commission (CAC)?
The required documents include:
- Memorandum and Articles of Association (MAA).
- Notice of the registered address of your business.
- Statement of compliance by a legal practitioner.
- Receipt of payment for stamp duties.
- Particulars, list, and consent of the first directors of your company.
How much does it cost to register a company in Nigeria?
The cost varies depending on factors such as the type of company and its share capital. Some of the fees imposed by the CAC include:
- Reservation of Company Name: ₦500.
- Registration of Private Company: ₦10,000 and upwards.
- Filing Annual Return: Varies depending on company type.
In conclusion, knowing the costs and procedures associated with registering a company in Nigeria is very important for every business owner. Whether you’re a new entrepreneur or an established business owner, having clarity on these aspects will enable you to plan your budget, meet regulatory requirements, and streamline the registration process. Remember, proper registration not only enhances your business’s credibility but also ensures compliance with legal regulations.
