Registering a business with the Corporate Affairs Commission (CAC) in Nigeria is a crucial step toward legal recognition, opening bank accounts, securing contracts, and scaling operations. Yet, many entrepreneurs unknowingly make avoidable mistakes during CAC registration that cause unnecessary delays, rejections, or extra costs.

Whether you’re registering a business name or a limited liability company, understanding common pitfalls can save you time and money. In this guide, we’ll walk you through the top CAC registration mistakes and exactly how to avoid them, so you can confidently complete your registration and focus on growing your business.

Why Proper CAC Registration Matters

Registering your business correctly with the CAC comes with many benefits:

• Gives your business legal status in Nigeria.
• Enables you to open corporate bank accounts.
• Builds customer trust and credibility.
• Helps in obtaining loans, grants, and government contracts.
• Ensures tax compliance and protects your brand name.

But making one wrong move during registration can lead to avoidable rejections or even loss of your preferred business name. So let’s explore what to watch out for.

Top Mistakes to Avoid During CAC Registration

1. Choosing a Conflicting or Invalid Business Name

One of the most common mistakes is selecting a business name that already exists or violates CAC naming guidelines.

Avoid this by:

• Conducting a thorough name availability search on the CAC portal.
• Avoiding names with restricted or sensitive terms like “National,” “Government,” or “Group” without special approval.
• Steering clear of names that are too similar to existing businesses.

Tip: Always have 2–3 backup names ready in case your first choice is rejected.

2. Using Incorrect Personal or Business Information

Many applicants make errors when entering personal data, such as name spellings, date of birth, or business addresses.

To prevent this:

• Cross-check all information with your official identification (e.g., NIN, driver’s license, or international passport).
• Use a valid Nigerian address and a functioning email/phone number.
• Double-check spellings, especially for your name and business address.

 

Related article: Business Registration in Nigeria: Business Name vs. Limited Liability Company

 

3. Uploading Blurry or Incorrect Documents

Another frequent mistake is uploading documents that are blurry, poorly scanned, or unrelated to the registration process.

How to fix this:

• Scan documents clearly in PDF format.
• Ensure that uploaded files meet CAC’s file size and format requirements.
• Only upload required documents like your means of identification, consent forms, and proof of payment.

4. Not Understanding the Difference Between Business Name and Limited Liability Company

Many first-time business owners register under the wrong structure, often due to a lack of knowledge.

The key differences:

• Business Name: Best for sole proprietors and freelancers. Easier to register, but offers no legal separation between you and your business.
• Limited Liability Company (LLC): Best for partnerships or scaling businesses. Offers legal protection and credibility, but more complex to register.
  
  

5. Skipping Professional Guidance When Needed

DIY registration is possible; however, complex business setups, multiple shareholders, or special objectives may require professional help.

Consider getting help if you:

• Want to register a company with multiple directors or foreign stakeholders.
• Need to register for VAT or obtain a TIN alongside CAC.
• Are unsure about selecting the right share structure.

Professional CAC agents or legal consultants can help you avoid mistakes and speed up the process.

6. Making Payment Errors

Mismatched payment details, incorrect remittance of fees, or using third-party agents with questionable reputations can lead to delays or scams.

Always:

• Pay directly through the official CAC registration portal.
• Keep your payment receipts and transaction references.
• Verify that any third-party agent is accredited.
  
  

7. Ignoring Post-Registration Obligations

The process doesn’t end after receiving your certificate. Many business owners forget post-registration steps like:

• Filing annual returns.
• Registering with FIRS for tax purposes.
• Opening a corporate bank account with CAC documents.

Neglecting these can lead to penalties or even deregistration.

How to Register Your Business Correctly with CAC

Avoiding the mistakes above is only half the story. Here’s a step-by-step outline of how to register the right way:

Business Name Registration

1. Search and reserve your business name.
2. Fill out the registration form on the CAC portal.
3. Upload valid identification and required documents.
4. Pay the CAC fees online.
5. Submit your application and wait for approval.
6. Download your certificate and start operating legally.

 

Limited Liability Company Registration

1. Conduct a name search and reservation.
2. Choose the right shareholding structure.
3. Prepare the memorandum and articles of association.
4. Fill out Form CAC1.1 and submit IDs of all directors.
5. Pay filing and stamp duty fees.
6. Upload and submit all necessary documents.
7. Get your certificate of incorporation and TIN.

Frequently Asked Questions (FAQs)

Can I register my CAC online myself?

Yes, you can. The CAC portal allows self-service registration for both business names and companies. However, complex cases may require professional help.

 

How long does CAC registration take?

Typically 3–7 working days for business names. Company registration may take 1–2 weeks, depending on documentation and approval delays.

 

How much does it cost to register a business with CAC?

As of now, business name registration costs around ₦10,000, while limited liability companies start from ₦25,000 to ₦50,000 and above, depending on share capital.

 

Can I change my business name after registration?

Yes, but it requires a formal process with CAC, including board resolutions (for companies), payments, and filings.

 

What happens if my CAC application is rejected?

You’ll receive a reason for rejection via your CAC dashboard or email. Fix the stated issues and reapply.