If you are planning to register a company in Nigeria in 2025, understanding the costs involved is crucial. The Corporate Affairs Commission (CAC) is responsible for company registration in Nigeria, and the associated fees vary depending on the type of company, share capital, and other specific requirements.
In this article, we will break down all the costs associated with registering different types of companies with the CAC in 2025. This guide is for users searching for how much it costs to register a company in Nigeria in 2025, and it includes a comprehensive table, FAQs, and addresses common misconceptions.
Types of Companies in Nigeria
Before diving into the costs, it is important to understand the types of companies you can register with the CAC:
- Private Limited Company (Ltd): A company with limited liability for shareholders, not allowed to offer shares to the public.
- Public Limited Company (PLC): A company whose shares are publicly traded and listed on the stock exchange.
- Limited Partnership (LP): A partnership where some or all partners have limited liabilities.
- Company Limited by Guarantee (Ltd/Gte): A company that does not distribute profits to its members and has no share capital.
- Unlimited Company: A company where members’ liabilities are not limited.
Comprehensive Breakdown of CAC Costs for 2025
Below is a comprehensive breakdown of the costs associated with registering different types of companies with the CAC in Nigeria, including the filing and stamp duty charges.
Name Reservation
| Service | Cost (Naira) | Explanation |
|---|---|---|
| Name Reservation | ₦500 (+ Remita charges) | Reserve a unique company name |
| Name Reservation (Restricted Words/Ltd/Gte) | ₦5,000 | For names with restricted words or Companies Limited by Guarantee |
Company Incorporation
| Service | Cost (Naira) | Explanation |
|---|---|---|
| Incorporation of Company Limited by Guarantee (Ltd/Gte) | ₦20,000 | Flat rate for incorporating a company limited by guarantee |
| Private Company Registration (≤1m share capital) | ₦10,000 | Flat rate for private companies with share capital up to 1 million Naira |
| Public Company Registration (≤1m share capital) | ₦20,000 | Flat rate for public companies with share capital up to 1 million Naira |
Additional Share Capital Registration Fees
| Service | Cost (Naira) | Explanation |
|---|---|---|
| Private Company (1m-500m share capital) | ₦5,000/₦1m | For private companies with share capital between 1-500 million Naira |
| Public Company (1m-500m share capital) | ₦10,000/₦1m | For public companies with share capital between 1-500 million Naira |
| Private Company (>500m share capital) | ₦7,500/₦1m | For private companies with share capital exceeding 500 million Naira |
| Public Company (>500m share capital) | ₦15,000/₦1m | For public companies with share capital exceeding 500 million Naira |
Stamp Duty
| Service | Cost (Naira) | Explanation |
|---|---|---|
| First 1 million Naira share capital | ₦8,500 | Stamp duty for the first 1 million Naira of share capital |
| Subsequent millions | ₦7,500/₦1m or 0.75% | For each subsequent million Naira of share capital |
Notes on Costs
- Additional Costs for Higher Share Capital:
- The registration fees for both private and public companies increase as the share capital increases. For private companies with more than 1 million Naira in share capital, the fee increases for every 1 million Naira or part thereof. For public companies, the increase is 10,000 Naira per million.
- Once the share capital exceeds 500 million Naira, the registration fees increase further. For private companies, this means paying 7,500 Naira for every additional 1 million Naira, while public companies will pay 15,000 Naira per million.
- Stamp Duty Charges:
- Stamp duty is an essential cost that applies to share capital. For the first 1 million Naira in share capital, the fee is 8,500 Naira. For each subsequent million Naira or part thereof, the stamp duty is 7,500 Naira, or 0.75% of the share capital.
- Companies Limited by Guarantee:
- These companies do not have share capital, and their incorporation cost is a flat 20,000 Naira. They are often used by non-profits, foundations, and organisations that aim to promote various causes.
FAQs: People Also Ask
1. How much does it cost to register a company in Nigeria in 2025?
The cost of registering a company in Nigeria in 2025 depends on the type of company and the share capital. For a private company with a share capital of 1 million Naira or less, the cost is slightly less than 20,000 Naira for filing fee and Stamp duties . If the share capital is higher like for foreign company registration, additional fees apply based on the amount.
2. What is the stamp duty for company registration in Nigeria?
The stamp duty for company registration is 8,500 Naira for the first 1 million Naira of share capital. For every subsequent million, the stamp duty is 7,500 Naira or 0.75% of the share capital.
3. Is there a difference between CAC filing fees and registration fees?
No, there is no difference between CAC filing fees and registration fees. The terms are often used interchangeably to refer to the costs associated with registering a company.
4. How long does it take to register a company with the CAC in Nigeria?
The duration for registering a company with the CAC typically ranges from 1 to 2 weeks, depending on the type of company and whether all the required documents are submitted correctly.
5. Can I register a company without physical presence in Nigeria?
Yes, you can register a company in Nigeria remotely through an authorised representative or legal practitioner.
Common Misconceptions
1. Myth: Registering a company is too expensive for small businesses.
- Fact: The cost of registering a small private company with a share capital of 1 million Naira or less is relatively affordable at 50,000-100,000 Naira. This can be easily managed by small and medium enterprises (SMEs).
2. Myth: You do not need to register a business if it is small.
- Fact: Whether big or small, registering your business legally protects your brand, helps you access funding, and makes you eligible for government contracts.
3. Myth: There is a difference between CAC registration and filing fees.
- Fact: Filing fees and registration fees are the same thing. They refer to the cost paid to the CAC for incorporating a company.
4. Myth: You only pay once for company registration.
- Fact: While registration is a one-time cost, companies are required to file annual returns with the CAC to maintain their active status, which incurs additional fees.
Conclusion
Registering a company in Nigeria in 2025 is a straightforward process once you understand the costs involved.
This comprehensive guide provides a clear breakdown of the costs based on the type of company and its share capital.
Whether you are registering a small private company or a large public company, it is important to budget for both CAC fees and stamp duties.
Keep in mind that as your share capital increases, so do the associated costs.
For more assistance with registering your company or understanding the costs, feel free to consult a legal professional or contact the CAC directly.
