Nigeria Business Registration Guide 2026

CAC Registration — Corporate Affairs Commission

The Corporate Affairs Commission (CAC) is the first point of registration for all businesses in Nigeria. The registration process includes:

• Business name registration: For sole proprietors and partnerships (simplified process)
• Company incorporation: For limited liability companies (most common for formal businesses)
• Registration of incorporated trustees: For non-profits and NGOs

Company incorporation requires: reserved company name, memorandum and articles of association, director and shareholder details (minimum 1 director, minimum 1 shareholder), registered office address, and payment of filing fees. The process is completed through the CAC online portal (CAC Registrar's Portal). Processing typically takes 1-2 weeks. A Certificate of Incorporation is issued upon completion, along with the company's registration number (RC number).

TIN Registration — Federal Inland Revenue Service

Every business must obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS). The TIN is required for:

• Opening corporate bank accounts
• Filing tax returns
• Issuing invoices and receipts
• Importing and exporting goods
• Bidding for government contracts
• Registering for VAT and withholding tax

TIN registration is integrated with the CAC process (automatic TIN issuance upon incorporation) or can be done separately through the FIRS Integrated Tax Administration System (ITAS) portal. The TIN is a unique 10-digit number. Companies must also register for VAT and withholding tax at the same time.

VAT Registration

VAT registration is mandatory for businesses whose annual taxable turnover exceeds NGN 25 million. Key details:

• Standard VAT rate: 7.5% (effective from 2021, increased from 5%)
• Registration threshold: NGN 25 million annual turnover
• Filing frequency: Monthly (returns due by the 21st of the following month)
• Zero-rated supplies: Exports, basic food items, medical products, books, and educational materials
• Exempt supplies: Financial services, residential rents, and some agricultural products

Businesses below the NGN 25 million threshold are not required to register or charge VAT, but may voluntarily register. VAT-registered businesses must issue VAT-compliant invoices and file monthly returns through the FIRS portal.

PENCOM Registration

All employers with 3 or more employees must register with the National Pension Commission (PenCom) under the Contributory Pension Scheme:

• Employers must register on the PenCom portal (Employer Registration System)
• Each employee must open a Retirement Savings Account (RSA) with a licensed PFA
• Monthly contributions (8% EE + 10% ER = 18%) must be remitted within 7 days of salary payment
• Employers must file monthly pension contribution schedules with PenCom
• Annual pension returns are also required

Failure to register or remit contributions attracts penalties of 2% per month on the outstanding amount. PenCom conducts regular compliance checks and can sanction non-compliant employers.

NHIS Registration

Employers must register with the National Health Insurance Authority (NHIA) to provide health insurance coverage for employees:

• Employer registers on the NHIS portal (I-Submit)
• Selects a Health Maintenance Organization (HMO) to manage coverage
• Contribution rates: 3-5% employer + 1-5% employee (varies by scheme)
• Coverage includes primary, secondary, and tertiary healthcare
• Employers must remit contributions monthly

The NHIA Act 2022 expanded mandatory coverage and increased penalties for non-compliance. Non-compliant employers face fines of up to NGN 5 million.

ITF and NSITF Registration

Industrial Training Fund (ITF): Employers with 5+ employees or annual turnover of NGN 50 million+ must register and contribute 1% of annual payroll. Registration is through the ITF portal. Employers may claim up to 50% reimbursement for approved in-house training programs.

NSITF (Employees Compensation Scheme): All employers must register with the Nigeria Social Insurance Trust Fund and contribute 1% of gross monthly salary. Registration is via the NSITF portal. The scheme covers work-related injuries, disabilities, and occupational diseases.

CBN Registration (Financial Services)

Businesses engaged in financial services, lending, or payment services require additional registration with the Central Bank of Nigeria (CBN):

• Commercial banks: CBN banking license (minimum capital NGN 25 billion)
• Microfinance banks: Tiered licenses based on capital (NGN 20 million to NGN 2 billion)
• Payment service providers: Payment Solution Service Provider (PSSP) license
• Money lenders: State-level money lending license
• Finance companies: CBN finance company license

CBN registration involves rigorous due diligence, minimum capital requirements, and ongoing regulatory compliance. Failure to register financial services activities is a criminal offense.

FAQs

How long does it take to register a company in Nigeria?

CAC incorporation typically takes 1-2 weeks. Full registration (including tax, pension, NHIS, ITF, NSITF) can take 3-6 weeks depending on the efficiency of the process.

Can a foreigner register a company in Nigeria?

Yes. Foreigners can incorporate a company in Nigeria with a minimum share capital of NGN 100,000 (approximately US $200), but must have a registered address in Nigeria and may need a business permit from the Ministry of Interior.

What is the minimum share capital for a Nigerian company?

The minimum share capital for a private limited liability company is NGN 100,000 (with at least 25% paid up). Companies with foreign participation require a minimum of NGN 100,000 paid-up capital.

Disclaimer

This guide provides general information about business registration in Nigeria for the 2026 tax year. Registration requirements and fees may change. Always consult with a qualified business advisor or lawyer for advice specific to your situation. InvestmentKit does not provide legal or business advice.