CAC Registration Guide for Online Sellers in Nigeria

"Do I need to register my business before I start selling online?" is one of the most common questions from new Nigerian sellers, and the honest answer is: not on day one, but sooner than most people think. Here's exactly what CAC registration involves, what it costs, and when it actually starts to matter.

What CAC registration actually is

The Corporate Affairs Commission (CAC) is the federal body responsible for registering businesses in Nigeria. For most small online sellers, the relevant option is a Business Name registration (sometimes called "Part A"), which registers you as a sole proprietor or partnership trading under a specific name. This is different from registering a full Limited Liability Company (Ltd), which involves more paperwork, more cost, and more ongoing compliance — most sellers don't need a Ltd company until they're operating at real scale or specifically need the legal separation it provides.

What you need before you start

• Two proposed business names, in order of preference, in case your first choice is already taken
• Your NIN (National Identification Number)
• A valid means of identification — international passport, driver's license, or voter's card
• A passport photograph
• A registered business address — this can be your home address; it doesn't need to be a commercial office
• Details of the business nature — a short description of what you sell (e.g. "retail sale of fashion apparel and accessories")

Step-by-step process

1. Name reservation: Search and reserve your business name on the CAC portal (cac.gov.ng) or through an accredited agent. This confirms the name isn't already taken and holds it for you.
2. Complete the registration form: Fill in your personal details, business address, and nature of business.
3. Upload documents: ID, passport photo, and signature.
4. Pay the registration fee: Business name registration typically costs in the ₦10,000-₦15,000 range depending on whether you go directly through the portal or use an accredited agent (agents often charge a service fee on top for handling the process for you, which is worth it if you'd rather not navigate the portal yourself).
5. Receive your certificate: Processing typically takes anywhere from a couple of days to about two weeks. You'll receive a CAC certificate and registration number.

Why it matters more than it seems

You can absolutely make your first sales without it. But registration starts to matter quickly once you want to:

• Open a business bank account — most Nigerian banks require a CAC certificate to open an account in your business name, which matters for separating personal and business money (a mistake we cover in common mistakes new Nigerian online sellers make)
• Get verified on payment platforms — payment gateways often require business KYC documents including CAC registration for full merchant verification and higher transaction limits
• Build buyer trust — displaying a registration number on your store signals you're a real, accountable business, not an anonymous account that could disappear tomorrow. We go deeper on this in how to get your business verified online in Nigeria
• Apply for loans or grants — most small business financing and government support programs require proof of registration
• Work with bigger partners — corporate clients, bulk buyers, and some logistics companies want to deal with a registered entity

Common mistakes to avoid

• Choosing a name too close to an existing brand — this can get your application rejected or, worse, cause legal issues later
• Using a fake or borrowed address — this causes problems if you need to update your CAC records later
• Forgetting annual filing — registered businesses are expected to file annual returns; missing this for years can create complications down the line, so keep basic records from the start
• Paying random "agents" on social media without verifying they're accredited — CAC lists accredited agents, and there are known cases of people collecting payment and disappearing

Getting your Tax Identification Number

Once your business name is registered, you're typically issued a Tax Identification Number (TIN), which is separate from your personal TIN and increasingly required alongside your CAC certificate when opening a business bank account or registering as a merchant with a payment gateway. Most sellers won't owe significant tax at small scale, but having a TIN in place from early on means you're not scrambling to sort it out later once revenue grows and it actually starts to matter for compliance.

What changes practically once you're registered

Beyond the bank account and trust signals already mentioned, registration also means you can legally issue proper invoices and receipts under your business name, which matters increasingly as you deal with corporate clients or bulk buyers who need documentation for their own records. It also positions you to apply for small business grants and support programs that specifically require proof of registration as a baseline eligibility requirement — several state and federal entrepreneurship schemes in Nigeria are only open to registered businesses.

When to actually do it

A reasonable approach: launch first with a handful of products and your first few sales to prove there's real demand, then register within your first one to three months once you're confident this isn't a false start. Don't let registration paperwork delay your launch — but don't let "I'll do it eventually" turn into a year of running an unregistered business either. If you're setting up your online presence at the same time, our guide to starting an online store in Nigeria walks through the full sequence, and you can get your store live on Bifixit while your CAC registration is still processing — the two don't need to wait on each other.