I once sat staring at a mountain of paperwork, skepticism swirling in my mind, thinking the process would drain my pockets. But with the right knowledge, registering a company in Nigeria in 2025 is more transparent, streamlined, and achievable than most aspiring entrepreneurs realize. Understanding the cost of registering a company in Nigeria 2025 is your first step toward unlocking new business opportunities.
Why Register Your Company in Nigeria?
Nigeria is Africa’s largest economy, brimming with vibrant markets, innovative startups, and plentiful resources. From tech hubs in Lagos to commercial enterprises in Abuja and Port Harcourt, formal business registration isn’t just a legal requirement—it gives your business legitimacy and trust, opening doors to bigger contracts, funding opportunities, and brand growth (Corporate Affairs Commission).
But beyond the benefits, the process—and particularly the cost of registering a company in Nigeria 2025—remains a major consideration for small business owners and foreign investors alike.
The Critical Components of Company Registration Costs
1. Type of Business Entity
The most common business structures in Nigeria include:
- Business Name (Sole Proprietorship or Partnership)
- Private Company Limited by Shares (LTD)
- Public Company (PLC)
- Incorporated Trustees (e.g., NGOs)
- Company Limited by Guarantee
Each structure comes with its own regulatory requirements and fee schedules.
2. CAC Statutory Fees
The Corporate Affairs Commission (CAC) is the official government body in charge of business registration in Nigeria. The CAC periodically adjusts its fees to reflect economic realities, and 2025 is no exception (CAC Official Fees Schedule). Fees are based on:
- Type of entity
- Share capital (for companies with shareholding)
- Number of directors or trustees
Cost of Registering a Business Name in Nigeria 2025
Registering a business name is often the gateway for micro and small businesses.
Key Steps and Fees:
- Name Reservation: ₦500 – ₦1,000 (valid for 60 days)
- Registration Fee: ₦10,000 (flat rate as per CAC updates)
- Professional Fees (Optional): ₦10,000 – ₦30,000 if using an agent or lawyer
- Other Incidental Costs: ₦2,000 – ₦5,000 (e.g., certified copies, postage)
Approximate Total: ₦22,500 – ₦46,000 including professional assistance.
Cost of Registering a Private Limited Company (LTD) in Nigeria 2025
This is the most popular structure for SMEs and startups.
Step-by-Step Fee Breakdown:
- Name Reservation: ₦500 – ₦1,000
- CAC Registration Fee (Share Capital-based):
- ₦10,000 for share capital up to ₦1 million
- ₦5,000 for every additional ₦1 million (up to ₦500 million)
- ₦7,500 per ₦1 million for share capital exceeding ₦500 million
- Stamp Duty (Federal Inland Revenue Service): 0.75% of share capital (₦15,000–₦20,000 for SMEs) (FIRS)
- Memorandum & Articles Filing Fee: ₦5,000 – ₦15,000
- Professional Charges (if applicable): ₦40,000 – ₦100,000
- Additional Documentation: ₦5,000 – ₦10,000
Approximate Total for LTD: ₦45,000 – ₦150,000 for a starter LTD, higher for larger companies.
Ancillary and Hidden Costs
Be prepared for:
- Document certification and printing
- Notarization fees (for foreign directors/shareholders)
- Post-incorporation filings (e.g., TIN from FIRS, VAT registration)
- Office address verification (₦20,000+ yearly)
Additional Considerations: Regulatory Agencies and Licenses
Depending on your industry, costs may rise due to special licenses:
- Nigerian Investment Promotion Commission (NIPC): Required for foreign-owned companies (NIPC)
- Sectoral Licenses: Banking, health, education, and oil & gas require further approvals, sometimes running into hundreds of thousands of naira.
Annual Renewal and Compliance Costs
Registration is just the start. Post-registration, businesses must file annual returns:
- Business Names: ₦3,000 – ₦5,000
- LTD Companies: ₦10,000 – ₦25,000 depending on share capital
Non-compliance attracts penalties and may lead to delisting (CAC Guidelines).
DIY vs. Professional Services
While the CAC online portal makes DIY registration possible, many entrepreneurs face errors, delays, or rejections. Engaging a lawyer or accredited agent increases costs but ensures smoother, compliant registration.
Case Examples (2025)
- Solo Fashion Designer (Business Name): ~₦29,000 (with agent)
- Tech Startup (LTD, ₦5m share capital): ~₦133,500
- Small NGO (Incorporated Trustees): ~₦91,000
Practical Tips for Lowering Registration Costs
- Compare professional charges (agents vary widely)
- Double-check documentation to avoid corrections
- Register online directly if comfortable
- Start with the most suitable entity type
- Plan for post-registration compliance from the start
FAQs About Cost Of Registering A Company In Nigeria 2025
Q: How long does registration take? 3–7 business days for business names, 2–3 weeks for LTDs (CAC Portal).
Q: Can foreigners own 100% of a Nigerian company? Yes, but they need permits and at least two directors (NIPC).
Q: What is the minimum share capital in 2025? ₦100,000 for most sectors; regulated sectors may require ₦10m+ (Deloitte Nigeria).
Q: Are there recurring costs? Yes, annual returns and tax filings are mandatory.
Final Thoughts: Making Your First Step Count
The cost of registering a company in Nigeria 2025 is not just an expense—it’s an investment in credibility. By budgeting smartly, choosing the right structure, and leveraging professional support where necessary, you’ll position your business for success in Nigeria’s fast-growing economy.
