How to Calculate CAC Registration Costs for a Business in Nigeria

 

Starting a business in Nigeria comes with several costs, and business registration is one of the expenses many entrepreneurs want to understand before they begin.

You may hear one person say, “CAC registration is ₦20,000,” while another person gives you a much higher figure.

So which amount is actually correct?

The confusion usually comes from mixing official CAC fees with other costs such as professional service charges, payment-related charges, documentation, or additional services.

The Corporate Affairs Commission (CAC) is Nigeria's official corporate registry and handles the registration of business names, companies, incorporated trustees and other entities.

Understanding what you are actually paying for can help you budget properly and avoid unnecessary surprises.

The Problem

Many people do not separate government registration fees from professional or service fees.

For example, imagine someone wants to register a business name.

They may ask an agent:

“How much will it cost me to register my business?”

The agent may quote ₦50,000.

But that ₦50,000 does not necessarily mean CAC itself is charging ₦50,000.

The total may contain different components:

• CAC filing fees

• Name reservation

• Applicable statutory charges

• Professional or agent service fee

• Other optional costs

If you do not understand the difference, it becomes difficult to know whether you are paying a government fee, a service fee, or both.

Another problem is using old information.

CAC has revised its fee schedule, and the Commission's current services page directs applicants to its current fee schedule rather than relying on old registration figures.

A Realistic Example

Imagine Tunde wants to register a small fashion business in Nigeria.

He searches online and finds an old article saying:

“CAC business registration costs ₦10,000.”

He then contacts an agent who tells him:

“The total is ₦35,000.”

Tunde becomes confused.

He may think the agent is overcharging him.

But before reaching that conclusion, he needs to ask:

How much is the official CAC fee?

How much is the agent's service charge?

Are there any additional charges?

What type of registration am I doing?

These questions matter because a business name registration is not the same thing as incorporating a limited liability company.

CAC itself lists different registration categories and different fee structures for them.

The correct approach is therefore to break the quotation into its individual components.

The Impact

Understanding registration costs before starting the process helps a business owner budget realistically.

It also makes it easier to compare service providers.

Suppose two agents give you these quotations:

Agent A

CAC fees: ₦20,000
Service fee: ₦15,000
Total: ₦35,000

Agent B

CAC fees: ₦20,000
Service fee: ₦30,000
Total: ₦50,000

Now you can see that the difference is not necessarily the CAC fee.

The difference is the professional service charge.

This does not automatically mean one agent is better or worse. Their services, experience, documentation support, turnaround arrangements and other terms may be different.

The important thing is that you understand what you are paying for.

Good cost breakdowns also make it easier to plan your startup budget.

Registration may be only one part of the money required to start operating.

You may also need money for:

• Business equipment

• Inventory

• Rent

• Branding

• Website

• Marketing

• Transportation

• Licences or permits applicable to the business

• Accounting or professional services

Registration should therefore be viewed as one part of the overall business setup cost.

How to Calculate Your CAC Registration Cost

The simplest approach is to separate the cost into categories.

Total Registration Budget = Official CAC Fees + Applicable Statutory/Portal Charges + Professional Service Fees + Other Optional Costs

The exact components depend on the type of entity and the services you require.

For a basic business-name registration, start by checking the current CAC fee applicable to:

1. Name reservation

CAC's current portal provides name availability and reservation as part of the registration process.

2. Business-name registration

This is the filing fee for registering the business name.

The revised CAC fee schedule published in 2025 lists ₦20,000 for business-name registration and certified copies of registration documents, effective under the revised schedule.

3. Professional service fee

If you use an agent, consultant, lawyer or another professional to handle the registration, their fee is separate from the CAC government fee.

CAC also states that individuals and proprietors can register business names themselves without using a legal practitioner, chartered accountant or chartered secretary.

This means you can compare the cost of:

Self-registration

versus

Professional-assisted registration

Self-Registration vs Using an Agent

If you register yourself, your main costs are the applicable CAC fees and any required charges shown during the official process.

CAC's registration process is online through its Company Registration Portal, and the Commission provides electronic certificates after successful registration.

Using an agent is different.

You are paying someone to help with the process.

That service may include things such as:

• Completing the application

• Preparing information for submission

• Uploading documents

• Following up on queries

• Helping resolve registration issues

• Guiding you through the process

The agent's fee is therefore a service cost, not automatically a CAC fee.

Before paying, ask for a breakdown.

What About a Limited Company?

The calculation changes when you are registering a company rather than simply registering a business name.

CAC's current fee schedule shows that incorporation fees for companies with share capital are calculated based on the applicable share-capital category. For a small or private company, the schedule lists ₦10,000 for every ₦1 million of share capital or part thereof, while public companies have a different rate.

For example, if the applicable incorporation fee is calculated at ₦10,000 per ₦1 million:

₦1 million share capital → ₦10,000

₦5 million share capital → ₦50,000

The actual registration budget can contain other applicable charges, so the share-capital calculation should not automatically be treated as the complete amount you will pay.

This is one reason you should identify the type of entity you want before estimating the registration cost.

Don't Confuse Business Name With a Limited Company

This is an important decision before you calculate anything.

A business name registration and a limited company incorporation are different structures.

CAC provides separate registration processes for business names and companies.

If someone simply tells you:

“CAC registration costs ₦X.”

Ask:

Registration of what?

A business name?

A private company?

A public company?

An incorporated trustee?

An LLP?

The answer can significantly change the calculation.

What Other Costs Should You Consider?

The official CAC fee is not necessarily the same as your entire business setup budget.

Depending on what you are registering and how you handle the process, you may encounter additional costs.

These can include:

Professional fees

If you use a professional or registration agent.

Documentation costs

Where particular documents need preparation or professional assistance.

Special registration requirements

Some activities may require additional regulatory approvals or licences outside CAC registration.

Optional CAC services

You may later need services such as certified copies, changes to registration details, status reports or other post-registration filings.

CAC publishes separate fees for these services.

This is why it is better to ask for a complete cost breakdown rather than asking only:

“How much is CAC?”

How to Avoid Overpaying

Before making payment, ask the person handling your registration to provide a written breakdown.

For example:

CAC official fee: ₦X

Name reservation: ₦X

Professional/service fee: ₦X

Other applicable charges: ₦X

Total: ₦X

This makes the quotation easier to understand.

Also ask whether the quotation includes only registration or additional services.

And most importantly, verify current government fees through the official CAC channels because fee schedules can change.

The CAC portal is the official platform for submitting applications and making payments for registration services.

Registration Cost Is Only the Beginning

Getting your CAC certificate does not mean your business has no other compliance responsibilities.

Depending on the type and activities of your business, there may be tax, annual-return, licensing and other obligations after registration.

CAC's current service information includes annual returns and post-registration filings as part of its ongoing corporate services.

This is why entrepreneurs should think beyond:

“How much does it cost to register?”

A better question is:

“How much will it cost me to set up and properly maintain this business?”

That question gives you a much more realistic startup budget.

Practical Solutions

Before registering your business, first decide what type of entity you actually need.

Then check the current official CAC fee applicable to that entity.

Separate government charges from professional service charges.

If someone gives you a quotation, request a breakdown.

Keep your CAC payment receipts and registration documents.

Use the official CAC portal when possible and avoid relying on old screenshots or outdated articles for current fees.

CAC currently states that business-name registration is end-to-end through its Company Registration Portal and that electronic registration certificates are issued after successful registration.

If you are unsure about the appropriate structure or have a complicated registration, seek professional guidance before making payment.

Most importantly, don't build your startup budget around one registration fee.

Think about the complete cost of starting and maintaining the business.

A Question for You

If you wanted to register a business today, would you know the difference between the CAC government fee and the agent's service fee?

Or have you ever received a CAC registration quotation without knowing exactly what each amount represented?

Share your experience in the comments. It may help another Nigerian entrepreneur avoid confusion when budgeting for business registration.