Registering a business name (sole proprietorship or partnership) in Nigeria is one of the ways to legally formalize your business. However, many entrepreneurs eventually find that forming a limited liability company (Ltd) offers better protection and scalability.
In this post, you’ll learn:
- What business name registration is
- The current CAC fees and process in 2025
- The pros and cons
- Why many now prefer Ltds over business names
- When a business name is still a viable option
What Is a Business Name (vs Company) in Nigeria?
A business name simply refers to registering your trade name under your own name or as partners. It does not create a separate legal entity. The business is legally the same as the owner(s).
By contrast, a company (Ltd or limited by shares, etc.) is a separate legal entity, distinct from its shareholders.
Because of that distinction, the liabilities, legal responsibilities, ability to raise capital, and many other matters differ significantly.
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Latest CAC Fees & Changes
One of the most important updates is the new CAC schedule of fees. As of 29 May 2025, the CAC published a revised fees schedule.
However, implementation has been delayed: the new fees will only take effect from 1 October 2025.
Also, from 1 August 2025, CAC increased many post-incorporation service fees (striking off, document searches, etc.), though those do not affect initial business name or company registration fees.
Here’s what to expect for business name registration (official CAC component):
| Item | Fee / Detail |
|---|---|
| Name reservation | ₦1,000 (standard); restricted word names may cost ₦5,000 |
| Business name registration (official CAC fee) | Roughly ₦10,000 to ₦15,000 (for sole proprietor / enterprise) |
| Service provider / agent charges | Over and above CAC fees, many agents will charge extra for handling, documentation, etc. |
| Post-incorporation / changes / striking off | Many fees have increased (striking off, relisting, address restriction, etc.) |
So your old figures (₦5,000, ₦20,000, etc.) are no longer accurate in many cases. Be careful to check the CAC’s official “New Schedule of Fees” before you publish.
What You Need to Register a Business Name (Requirements)
To register, you will typically need:
- A reserved / approved name
- Completed form CAC-BN/1 or the equivalent business name registration form
- Details of the proprietor(s): full name, address, occupation, date of birth, etc.
- A means of identification (e.g. National ID, international passport)
- Signature(s) of proprietor(s)
- Registered address for the business
- Payment of filing / registration fees
You submit these via the CAC registration portal (CRP): you can upload scanned documents, do name search, name reservation, and payment. Corporate Affairs Commission
After approval, you receive your Certificate of Business Name.
Processing times may vary, many do it in 1–3 days, though delays are possible depending on load, document issues, or queries from CAC.
Step-by-Step: Register Business Name Online (2025)
Here’s a streamlined, updated process:
- Go to the CAC’s Company Registration Portal (CRP) and sign up for an account.
- Do a name search to see if your proposed business name is available.
- If available, proceed to name reservation.
- Pay ₦1,000 (or more if restricted word)
- CAC reserves the name for 60 days during which you must complete registration.
- Fill out the business name registration form (BN-1) online.
- Upload required documents (ID, address proof, etc.).
- Pay the filing / registration fee as set by CAC (plus any agent fee).
- Submit the application for CAC to review.
- If all is in order, CAC will issue the Certificate of Business Name — you may pick it up or download it electronically (depending on your region).
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Business Name vs Ltd: Key Differences & Why Many Prefer Ltd
Here’s why, many entrepreneurs opt for a Limited Liability Company (Ltd) rather than registering only a business name:
1. Limited Liability Protection
In a business name structure, your personal assets are at risk. Creditors can pursue you personally if the business cannot meet obligations.
With a Ltd, the company is a separate legal entity. Your liability is generally limited to your shareholding / capital invested.
2. Easier Access to Capital & Investment
Companies (Ltds) can issue shares, attract investors, and raise equity funding. Banks and investors tend to prefer dealing with companies rather than solo proprietors.
Also, because an Ltd has clearer structure and governance, lenders perceive less risk.
3. Enhanced Credibility & Trust
Operating under “Ltd” conveys formality, professionalism, and stability. Many clients, corporate organizations, and government agencies prefer contracting with a company rather than a business name.
4. Perpetual Succession
A company continues even if a shareholder or director dies or leaves. The business identity and operations persist.
In contrast, a business name often ends or must be re-registered when the owner dies or leaves.
5. Ease of Transferring Ownership
In a company, you can transfer shares, bring in new investors, or restructure ownership without dissolving the business.
With business names, transferring the “business” means re-assigning ownership formally, which is cumbersome and sometimes not allowed under the same registration.
6. Access to Government Contracts & Permits
Certain government contracts, tenders, or permits are restricted to companies (Ltds). If you only operate under a business name, you may be ineligible.
Also, foreign investors or foreign-owned businesses often must incorporate a company to operate in Nigeria.
7. Legal & Tax Advantages
- Companies have a more formal legal structure and more protections under the Companies and Allied Matters Act (CAMA).
- In some situations, tax planning can be more flexible with companies (though this depends heavily on revenue, expenses, and local tax laws)
When a Business Name Is Still Useful
Despite the advantages of Ltd, registering a business name is still suitable in some situations:
- You’re a small operator, freelancer, artisan, or trader with low risk and minimal capital.
- You want low cost and minimal regulatory burdens (fewer filings, simpler operations).
- You don’t expect to raise external capital early.
- You want to test your business idea before scaling.
- You plan to eventually upgrade to a company once the business grows. Many consultancies help “upgrade from business name to Ltd.”
