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New Steps to Register and Incorporate Your Business in Nigeria to PLC or LTD

Are you planning to own a business in Nigeria? If yes, read the new steps to register and incorporate your business in Nigeria. You have to follow these steps to get the needed authorization to operate in your capacity in the country.

Government is steadily making efforts to improve business registration in Nigeria by enacting favourable laws, and creating platforms (like websites) hastening business registration.

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To officially register one’s business gives the business prestige and reputation, hence the need to register one’s business. Everyone who wishes to register a business in Nigeria must follow in certain steps in order to achieve this.

Step 1: Choose a name for your new business

The name one chooses for his or her business sends a signal to the general public what he/she is into – a good name is an asset to the company. Therefore, time must be taken to reflect on appropriate name a business will bear.

Remember that one of the advantages of officially registering one’s business is that when one registers his/her business, no other business is allowed to have the same name in the country unless they wish to operate as affiliate or subsidiary of the mother company.

So, a related name to the kind of business one wishes to go into is key, and one has to consider it if he wishes to register a business in Nigeria. Ensure the name you wish to bear has not been taken by someone else.

Step 2: Registering a business name

The Corporate Affairs Commission (CAC) was established by the Companies and Allied Matters Acts of 1990. The functions of CAC include but not limited to incorporation of companies (public, private and limited by guarantee), registration of business name and so many others.

Individuals who wish to register a business in Nigeria have to pass through CAC because they have the sole responsibility of doing that in Nigeria. CAC recognizes four (4) types of companies for business ventures in Nigeria and they are Private Limited Company (Limited), Public Limited Company (PLC), Companies Limited by guarantee and Unlimited Companies.

Pay a visit to a CAC office near you and submit the intended name.

Name search normally takes about one week after which you are expected to come back to check the status of the search. Business names are searched to ensure that no one has registered the name before.

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If your business name is not available, you have to buy another form and they suggest available names to you. But if it is available then you have to proceed. The business address is registered as well. The next procedure is to collect a form called Registration of Business Form.

Step 3: Incorporating your business

After the business name is approved, the next step to register a business in Nigeria to a full incorporation is to “incorporate the business.” Incorporating procedures are assessed under:


1. Type of company

Private Limited Company (LTD) or Public Limited Company (PLC). The major difference between the two is that PLC companies can quote shares in stock exchange market but LTD companies cannot.

Whereas an LTD company is more interested in making profits, a PLC company is more interested in services and goods for public to have good reputation.

All the legal objects of the company must be contained in Memorandum of Association and Articles of Association (which are constitution and policies of the company that you have prepared).


#2. Objects of the company

Legal objects are the major framework and business dealings which indicate how a company intends to run within the acceptance of the law.

They are set of goods and/or services a company intends to go into dealing or providing in its day to day activities. It must be legal and non-Nigerians are often limited to some sets of objects.

Non-Nigerians are not allowed to participate in production of arms, military hardware, narcotic drugs, etc.

They are traded in Naira which is the local currency of the country.

The subscribers are adults above 18 years who buy into the memorandum and articles of association. These subscribers eventually become directors in LTD companies. It has to be clearly stated with their names, occupations, addresses, etc.

Stamp duty fees, and the mandatory payment of N10,000 for every N1milion base of the company is required. Before this stage, remember that a business owner has to pay for N500 for business name search form.


#3. Tax requirements

Companies are subject to tax rate of 30% per annum. Telecom companies are further taxed 5% of their earnings under the Value Added Tax Act of 1993.

There is also an employee tax (PAYE) backed by Tax Act of 1993 which is charged on salaries of workers of the company.

These taxes are paid to Federal Inland Revenue Service and/or State Board of Internal Revenue. When companies file their returns, they are given Taxpayer Identification Number (TIN).

This helps companies to access government loans, do bank transactions, import and export goods into/out of the country, and do foreign exchange business.

Foreign investors are allowed to fully or partly own their businesses in Nigeria. This is backed by the Nigerian Investment Promotion Act of 1995, Securities Act 1999, and Foreign Exchange Act 1995.



To register a business in Nigeria to a full capacity of incorporation involves some steps that must be followed.

Entrepreneurs are encouraged to register their businesses because of its attendant benefits which include giving the company a separate legal identity, giving it a unique name, real owner’s liability is limited (as it is in PLC), the tax benefits, and general public investing in the company which will broaden its capital base (as it is in PLC).

You have seen new steps to register and incorporate your business in Nigeria.Hope this guide helps, share it if it’s useful to you. Have comments or question? Use the comments section below

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Ifiokobong Ibanga

Ifiokobong Ibanga is the founder of InfoGuideNIgeria.com. You can get in touch with him on Instagram @ifiokobong. If you need a personal assistance on this topic, kindly send a message. Much Love!

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  1. thank u for this valuable information. pls sir I’m an entreprenuer I want to go into production cosmetics such as hair cream, aftershave, air freshener and body perfume. like how much will it cost me to register the company and which category does it belong? plc or ltd?

  2. This is a timely information I will need more as I am preparing to start my own company. Thanks

  3. That you very much for enlightening us. In a company with 1,000,000 shares, what is the maximum no of shares that one shareholder can have?

  4. I wish to register my business(a mini supermarket) under which category does it fall in? And can I do the registration without the help of a lawyer? What about the local government agencies that go around collecting fund from shops, what about them?

  5. Thanks for this beautiful details but can you drop ur office contact so we can discuss one on one and how much you charge for these services. Thanks

  6. thanks for this valuable information. but can you explain in a simplified way you have explained business registration to the very end. please kneed this information badly because I wish to do everything by myself. thanks

    1. Hello Adebiyi, the whole process is written there. But sometimes t could be a bit tasking. That’s why you may need to contract an expert. But I think it’s something you can do if you are determined. Success!

  7. How much is the whole process going to cost me to Register a limited liability company in Nigeria with a share capital of #300,000

    1. Hi Fredrick, I think you go for a Limited Libility Company with a share capital of 1,000,000. This will cost you less than N40,000 if you know how to prepare the paper work (i.e Memorandum and Article of Association as required by the Company and Allied Matters Act).

  8. Thanks for the Education. I hope to register my business sometime next year before I launch officially, but I need to know if during the course of the registration I’d be asked by CAC to present my port-folio as a way of confirming the authenticity of my proposal. I’ve decided to start my business small and I’m wondering if small is enough to be registered by CAC

    1. No @Akintomide, you will not be asked to submit your portfolio but you will be asked to submit your article of association as a statutory requirement of the Company and Allied matters act pf Nigeria. The article of association will contain the duties and responsibilities of your company. We have consultants that can do this for you. If you need help in doing this, kindly contact us.

  9. Hello,

    Thanks for the tips, i will be registering a business name soon which i plan to convert into LTD, but i don’t know if i will be asked for a new name

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