How Much It Cost to Register a Company (Ltd)

Registering a Limited Liability Company (Ltd) is one of the most common steps entrepreneurs take when they want to formalise a business. Beyond giving your venture legal personality, incorporation improves credibility, limits personal liability, and opens the door to banking, investment, and government opportunities. A frequent question, however, is cost: how much does it actually take to register an Ltd in Nigeria?

The answer depends on several variables, including statutory filing fees, professional charges, share capital structure, and post-incorporation requirements.

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What “Company Registration Cost” Really Means

When people ask about the cost of registering a company, they often assume it is a single fixed amount. In reality, incorporation expenses are made up of mandatory government fees payable to the Corporate Affairs Commission (CAC) and optional or professional expenses that vary depending on how you choose to register.

Broadly, the total cost of registering an Ltd in Nigeria includes:

• CAC statutory filing fees

• Stamp duties on share capital

• Professional or agent service fees

• Ancillary costs after incorporation

Each of these components plays a role in the final figure.

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Statutory Fees Payable to the Corporate Affairs Commission (CAC)

H3 — Name Reservation Fee

Before a company can be incorporated, its proposed name must be reserved with the CAC. This involves a mandatory name availability search and reservation fee of N600. The reservation is valid for a limited period, within which incorporation must be completed. While this cost is relatively modest, it is compulsory and non-refundable once processed.

Filing Fees Based on Share Capital

One of the most important cost drivers in registering a Nigerian Ltd is the authorised share capital. Under Nigerian company law, CAC filing fees are calculated on the basis of the company’s declared share capital.

Companies with a lower share capital attract lower filing fees, while those with higher capital thresholds pay correspondingly more. This means a small startup and a large corporate vehicle will not pay the same amount to the CAC, even though both are limited liability companies.

It is common for early-stage businesses to register with the statutory minimum share capital required for private companies and increase it later when necessary. For instance, for a share capital 1,000,000 units of shares, the minimum fee is 10,000.

Stamp Duties on Share Capital

Stamp duty is payable on the company’s share capital as part of incorporation. This duty is assessed as a percentage of the nominal share capital and must be paid before the CAC finalises registration. Although the rate is relatively small, it increases as share capital increases, making it another variable cost component.

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H2 — Professional and Service Fees

Using a Lawyer, Consultant, or Registration Agent or LegalDoc (Which is all three rolled into one)

While individuals can register a company directly through the CAC portal, many founders prefer to use  a third party such as LegalDoc, a company made of lawyers and consultants to avoid errors and delays. Professional fees vary depending on:

• The complexity of the company structure

• Number of shareholders and directors

• Whether additional documents are required

• Turnaround time requested

For a straightforward private limited company with one or two shareholders, professional charges are usually moderate. Where there are multiple shareholders, foreign participation, special share arrangements, or tailored articles of association, professional costs are typically higher.

Drafting of Company Documents

Some incorporations require customised Memorandum and Articles of Association, shareholder agreements, or post-incorporation resolutions. Where these are not standard templates, drafting costs may be charged separately. Although optional, such documents are often advisable for businesses seeking investment or planning for growth.

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Minimum vs Practical Cost of Registering an Ltd in Nigeria

Minimum Statutory Cost

The minimum cost of registering an Ltd in Nigeria reflects only the CAC filing fees, stamp duties, and name reservation for the minimum allowable share capital. This is the lowest possible amount if you handle the process yourself and avoid professional services.

However, this approach requires careful attention to compliance details and familiarity with the CAC portal.

Practical Market Cost

In practice, most founders incur additional expenses by using professionals, expediting filings, or increasing share capital to reflect business needs. As a result, the practical cost of incorporation is usually higher than the statutory minimum.

For budgeting purposes, it is safer to plan for both statutory and professional fees, especially if you want the process completed efficiently and without errors.

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Additional Costs After Company Registration

Tax Registration and Compliance

Once incorporated, a company must register with the Federal Inland Revenue Service (FIRS) for tax purposes. While obtaining a Tax Identification Number (TIN) is often integrated with CAC registration, compliance costs may arise from:

• VAT registration

• PAYE registration for employees

• SCUML registration

• Engaging accountants or tax consultants

These are not CAC fees but are essential for lawful operation.

Corporate Bank Account Opening

Most Nigerian banks require certified incorporation documents, board resolutions, and identity verification to open a corporate account. While banks generally do not charge a registration fee, costs may arise from documentation, minimum opening balances, or professional assistance.

Annual Returns and Ongoing Filings

After incorporation, companies must file annual returns with the CAC. This attracts recurring statutory fees and, where applicable, professional charges. Failure to file annual returns leads to penalties and may affect the company’s legal standing.

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Factors That Influence the Total Cost of Registering a Company

Several factors explain why incorporation costs differ from one business to another in Nigeria:

• Size of authorised share capital

• Number of shareholders and directors

• Use of professional services

• Complexity of corporate documents

• Speed of registration

• Foreign participation or specialised business objects

Understanding these variables helps founders make informed cost decisions rather than relying on generic price figures.

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How to Reduce Company Registration Costs Legally

Start with a Modest Share Capital

For startups and small businesses, registering with the minimum required share capital helps keep CAC and stamp duty fees low. Capital can always be increased later when needed.

Use Standard Structures Where Appropriate

Where your business model is simple, standard articles of association and basic governance structures can reduce professional drafting costs.

Plan Ahead to Avoid Corrections

Errors in names, share allocation, or director details often lead to correction filings, which attract additional fees. Careful preparation before submission helps avoid unnecessary expenses.

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Is Registering an Ltd Worth the Cost?

For many Nigerian entrepreneurs, the benefits of incorporating a limited liability company outweigh the costs. An Ltd offers:

• Legal separation between owner and business

• Improved credibility with clients and lenders

• Easier access to funding and partnerships

• Perpetual succession and structured ownership

While registration involves upfront and ongoing expenses, these costs are often modest compared to the legal and commercial advantages gained.

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Conclusion

The cost of registering a company (Ltd) in Nigeria is not a single fixed figure but a combination of statutory charges, share capital-related fees, and optional professional services. Entrepreneurs who understand these components can budget realistically and choose the structure that best suits their business goals.