How To Register A Company In Nigeria From Just 23,700 Naira ($62): The Complete Guide

How To Register A Company In Nigeria On CAC Portal
How To Register A Company In Nigeria On CAC Portal | Image Source: awajis.com

In a previous article titled How To Register A Business In Nigeria With Just 10,500 Naira ($27): The Complete Guide, I explained the step by step process of how any individual trying a register a business name in Nigeria on the CAC portal could do it by themselves.

As a continuation of the business registration post series, this article focuses on another crucial part of business registration in Nigeria. And that’s how to register a company in Nigeria starting from 23,700 Naira, based on the share capital of the company you’re registering.

 

But First…

Before you think about registering a company in Nigeria, you first have to determine the type of company that is most suitable for your business.

There are three major types of companies:

  1. Company limited by shares
  2. Company limited by guarantee
  3. Unlimited company

Any of the above may either be a private or public company.

Please look out for our eBook on how to start a business in Nigeria for a full understanding of all the types of companies you can register in Nigeria.

However, the most common type of company mostly incorporated in Nigeria is the Private company limited by shares, hence the main focus of this article.

See Also: How to Choose A Business Plan Consultant

 

The Information Needed For The Registration Of A Company In Nigeria

  1. Proposed company name:  Just as stated in the business name registration article, conduct a public search to know whether the name you intend to use is already in existence, follow the steps in the article to learn how to conduct a search, identify if the names you intend to register falls under prohibited or restricted names, and also look out for the ebook for a comprehensive understanding of all these.
  2. Alternative name
  3. Type of company
  4. Address of principal place of business.
  5. The object clause
  6. Particulars of share holders
  7. Particulars of directors
  8. Means of identification of directors and shareholders
  9. The share capital
  10. Distribution of shares

See Also: How To Register A Business In Nigeria With Just 10,500 Naira ($27): The Complete Guide

 

How To Register A Company In Nigeria Using The CAC Portal

Step One: Availability Check And Reservation Of Names

This has to be done after you have successfully created an account (please read the previous article on how to register a business name in Nigeria for just 10,500 Naira ($27) to learn how to create an account).

Log into your account

i). On the home page, provide two names for your company registration

ii). On the first box, provide the most preferred name and provide an alternate name in the second box. Either of the two should be approved if available and without any impediments.

iii). Ensure you add limited at the end of each name. E.g ABCD limited

  • Click on proceed and fill in the details correctly
  • On the classification, select company
  • On the company type, select the type of company you prefer
  • Select your reason for the availability

iv). Click on next, and you will be brought to the payment section.

v). Choose the type of online payment best suited for you and pay the sum of N500 for the search.

To view your payment history, return to the portal, click on “reservation history”, then click on the “action button” on the right end of the reserved name. It will take you to the payment history page. Click on “check status” to confirm your payment.

Once this is completed, click “check my reservation history” to see whether the name has been approved or not. All things being equal, approval or denial of the name shouldn’t take beyond two working days.

Once a name has been approved, the status on the name changes from “pending approval” to “approved”, and a code is given as an identity for the reserved name. This code is what you will use to complete your registration. To view this code, click on “action button” and download the approval note and code.

Step Two: Filling The Application form

After you have obtained the availability code, click on “registration”. Just beside “name search”, choose company, and enter the availability code. Then click on proceed.

After you have entered the code select “continue”.

This page will be displayed.

Fill in the forms correctly and click on “Continue” when done with each stage. You can always click on “save and exit” to leave and also continue from where you stopped later.

i). Stage One: presenter’s details

Fill in your details correctly.

ii). Stage Two: Company details

You would need to fill in the name of the company, office address, city, state, etc, and click “Continue” to proceed.

iii). Stage Three: First Directors

It is worthy to note that the minimum requirement for a number of directors in a company formation is two and must not be below the age of 18, is a person of unsound mind, and an undischarged bankrupt.

So at this stage, click on “add a director”. After you have filled the details of the first director, click on “save director”. Also click on “add director” again to add the particulars of another director. Repeat this process until you are done adding the number of all the directors you wish to add.

A list of the added directors would now be displayed on the page.

To edit or delete a director’s details, simply scroll to the director’s name, click on “Action”, and select “edit detail” or “delete”. Depending on what you want.

After adding the directors, click on “Continue” at the bottom left to proceed.

iv). Stage Four: Secretary

Note: For a public company, the secretary must be a legal practitioner, a chartered secretary, or a chartered accountant. This is not mandatory in a private company, but also advisable.

Fill in the form for the details of the company secretary correctly and click on “Continue” to proceed.

 

v). Stage Five: Subscribers

Subscribers are individuals subscribing to the shares of your company.

Click on “Add a new shareholder”, fill the form, and click on “Add” to insert another shareholder. Repeat this process until you have added all the shareholders.

Note: You can add any of the directors as shareholders.

Click on the check box beside the director’s name to select them, fill in the number of shares and type of shares, and click on “Click to Add selected Record(s)”to insert.

To edit the details of a shareholder or to delete a shareholder:

Scroll to the name of the shareholder below the page where the names of the added shareholders are displayed. Click on “Action” and select “edit” or “delete” as the case may be.

After you are done adding the shareholders, click “Continue” to proceed.

vi). Stage Six: CAMA Declaration

This is a declaration (statement on oath) that must be completed by a legal practitioner and sworn to before a commissioner of oaths or a Notary public.

vii). Stage Seven: Memorandum & articles of Association

Click on “Add an object” and type in the object one after the other.

The MEMART must reflect the name of the company, the registered address of the company, the type of company, the object clause of the company, the authorized share capital of the company, the particulars of subscribers,; their names, addresses, signatures, and the number of shares taken by them.

It is important you fill this part diligently, as the memorandum and articles of association (MEMART) serves as the constitution of the company.

Here you might need the advice of a legal practitioner on how to choose your objects because some objects determine some special requirement like proficiency certificate, etc.

viii). Stage Eight: Documents.

Click on the pointer at the right side of each document and select the number of certified true copies (CTC) you need. After selection, click on “Continue” to proceed.

A preview of your company registration is displayed.

Go through the preview for clarity. You can click on “go back” to return to previous pages and make corrections if any. If everything is correct, click on “Proceed to Payment” at the bottom right of the page to continue.

The filling fee paid at this point is 15,000 Naira.

 

Step 3: Stamp Duties

After payment is made, you will automatically be directed to the FIRS website where you would have to pay stamp duties on the company. The MEMART and Statement of authorized share capital are subject to stamp duties.

The amount you pay as stamp duties is dependent on the share capital of the company. For a company with a share capital of one million, the stamp duty costs just 8,200 Naira.

Once you make the payment, you will be automatically be directed back to the CAC website. If this does not occur automatically, go back to the CAC portal, log in, click on registration, and select company. This would reveal two documents: Cac 1.1 and MEMART. Download the stamped document, and print the document in coloured for the directors to append their signatures and for other necessary information to be completed.

Step 4: Document Upload

  • Scan the document and save as pdf
  • You would need to scan the availability report, payment receipts, identity of directors and shareholders if different, stamped memart (duly signed), stamped application form (cac 1.1 duly signed), and proficiency certificate where applicable.
  • Note: these documents should be scanned and uploaded independently
  • Visit http://docupload.cac.gov.ng or visit cac.gov.ng and select document upload.

  • Enter the availability code you used in registering the company and select the nearest CAC office you wish to pick up your certificate from.
  • Enter the captcha.
  • Click on begin.

  • Click on Choose Scanned Document Below and select the documents you wish to upload.
  • Click “Attach” to attach the document.
  • Attach all documents one by one.
  • All attached documents are displayed in the “List of Documents window”.
  • Click “submit” to submit.

  • Wait for your certificate. Once the certificate is ready, you will receive a mail to that effect and the status of the registration will change and RC number generated.

See Also: The Crude Oil Marketing Business In Nigeria: Complete Guide For Buyers & Sellers

 

A Summary Of The Company Registration Fees

Here’s a short summary of the company registration fees for a company with a one million share capital.

Search = 500 Naira

Filing Fee = 15,000 Naira

Stamp Duties = 8,200 Naira

Total = 23,700 Naira

This cost is only for a company with a one million share capital and could greatly differ depending on the share capital of the coy.

 

To Sum It Up

I hope you find this very helpful. However, I wish to state succinctly that the role of an accredited practitioner in a company registration can never be overemphasized. Do contact one for professional advice before carrying on with this process.

See Also: 10 Hot Supply Chain Business Opportunities In Nigeria

 

About The Writer

This is a blog post submitted by Amara Okafor. She is a lawyer, a writer, and a member of the Startup Tips Daily Media Team.

You can contact her through Startup Tips Daily Media for any further questions or enquiries concerning your business name registration and company incorporation.

Note: This article has been edited for style and substance.

If you’ll like to submit guest blog posts like this to startuptipsdaily.com, please read the guidelines listed here.

If you’ll like to join the Startup Tips Daily Media team like Amara, do send an email to stanley.edom@startuptipsdaily.com, describe yourself in-depth, and explain the value you intend to bring to the team. We look forward to hearing from you!

 

What are your thoughts on how to register a company in Nigeria? Let me know by leaving a comment below.

 

Stan Edom
Stan Edom
I'm an entrepreneur with expertise in supply chain management, international trade, small business development, e-commerce, internet startups, renewable energy, and agriculture. I'm also a network engineer, I.T security expert, and computer programmer. In my spare time when I'm not working out at the gym, I try to solve problems people face in their everyday lives with whatever means necessary.

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33 Comments

  1. This is very detailed. Many thanks.

    If I may – does the legal registration also cover tax registration?
    Or is there a separate application process for that? By this I mean does one have to register the company for tax purposes after having performed the legal registration above?

    – Obiocha A. Ikezogwo

    • Thank you for the comment, Obiocha.

      You have to register for taxation seperately. You can also do that yourself by visiting the nearest tax office at your business location.

      Thank you for asking.

  2. Thank you for the excellent step by step break down. After paying all these fees could the registration of the company still be disapproved?

    • Hi Austin,

      Payment of the registration fees is not a guarantee that your registration will be approved. If there is a mix-up somewhere or a mistake in the process it can be queried even after making the payments.

      If it’s disapproved (queried) Kindly download the query note and regularize your steps for it to be approved.

      Thank you for asking.

  3. Please, if it is queried that the share capital is small considering the object clause, how does one rectify this query?

  4. Thank you very much for a very thorough write up on the registration procedures. I noticed on the registration portal page that a National Identification number was indicated on the space made for means of identification. how does one using an an international passport as means of identification input the passport number?

    • Hi Nnamdi,

      International passport is also a means of identification. Kindly input your international passport number on the space required. The number is usually 9 digits. It starts with an alphabet and ends with a number. You can check out for the number below the coat of arm page. Thanks.

  5. I will like to know if when I’m filling the form I need to go to the commissioner of oaths to sign on the form because you didn’t mention that step in the company registration process. Also if during the registration process, my application is queried after I have made the payment of N15,000, will I have to make another payment? Thanks

    • Hi Kelly,

      Yes, you need a commissioner of oath and a legal practitioner to sign the form. This is clearly stated in stage six of this article.

      No, you don’t have to make another payment.Just comply with the query and resubmit.

      Thanks.

  6. While adding the first directors, I noticed that the name of the presenter is automatically added as a director. Does one need to add it again as director because I noticed that I was unable to allot shares to the presenter as director as I did for other directors.

  7. i want to register the business name of my schools both regular and music. Do I need to register them differently bearing in mind that they have the same name.
    I don’t also know which business type but the business is owned by me.

  8. I have problem with creating object for my business name. I was asked to choose object from the template provided and i did same. but i was queried that the object was vague. pls assist on how to frame my object, citing example will be of great assistance. thanks. The nature of my business is Networking, Installation of CCTV and other security gadgets and sale of laptops. the only relevant template on their portal is processional and Technical activities. Pls advise me.

    • Hi Luqman,

      A lawyer would be of great assistance in helping you draft a better object.I advice you get one. But then, since it was queried for being vague, just try to make it more explicit and clearer with simple words.

      Thank you.

  9. Hello, my application was queried to provide 2nd director’s ID and to attach another 15000 receipt. I have paid 20,500 for registration before. This people are not easily accessible at all -they don’t pick calls, there numbers are always not available. Please tell us why another payment of 15,000. Thanks

    • Hi Tunde,

      Maybe its from the value of your share capital. Please kindly visit the nearest CAC office in your area and lay the complaint.

      Thank you.

  10. What does it mean to have a share capital of 1 million naira? Does it mean that the money will be deposited in your company’s account for authentication?

  11. MUST ONE HAVE THE 1 MILLION CASH OR IN ACCOUNT FOR EXAMPLE INORDER TO REGISTER A COMPANY OF 1M ?sharecapital

  12. Good day sir,

    I am registering a company.

    The difficulty i am experiencing now is that after i had input all necessary information to the stage of PREVIEW, it keep showing me a “PRESENTER” as one of the “DIRECTORS” of the company.

    I am sending this e-mail to know what to do in other to correct the error.

    Taiwo Sunday

  13. Amara, you did a very great job here! Kudos? nice write u.
    Please, answer to this ?
    What does it mean to have a share capital of 1 million naira? Does it mean that the money will be deposited in your company’s account for authentication?

    And secondly, do you have any idea what the stamp duty of 5-25million shares will be? Thanks in anticipation…

  14. Hie Mrs Amara Nice write up, please …….. can I request for your Email contact…..and I will b glad if u can kindly send me a mail damilareadekunle13@gmail
    .Thanks

    Regards .

  15. Hi Mr Edom, I paid for the company registration and stamp duties over the last 3weeks and cac1.1 with memart is not yet on my portal and my registration is still pending. pls sir what next can I do?

  16. Thanks the tip is useful.
    Do I have to subscribe the entire share capital to shareholders and can the presenter who is also the company owner subscribe?

  17. This is well detailed article on company registration in Nigeria. Kindly link me up with a law practioner that can handle limited company registration for me. Thanks

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