How to Register a Company in Lagos

How to Register a Company in Lagos

Introduction

Lagos, the commercial heartbeat of Nigeria, is home to thousands of thriving businesses — from tech startups and real estate firms to logistics companies, restaurants, and financial institutions. Whether you are a Nigerian entrepreneur, an investor, or a foreign national, registering your company in Lagos is the first and most important step toward operating legally and enjoying full business rights under Nigerian law.

Company registration in Lagos not only gives your business a legal identity but also enhances your credibility, opens access to corporate banking, contracts, government tenders, and investor partnerships. Without proper registration, your business cannot operate formally, open a corporate account, or enter legally binding agreements.

This comprehensive guide explains the step-by-step process of registering a company in Lagos, the requirements, costs, benefits, and legal implications, including insights from the Companies and Allied Matters Act (CAMA) 2020. It also highlights common mistakes to avoid, case studies, and professional recommendations from Chaman Law Firm — one of Nigeria’s leading business and corporate law firms.

Legal Framework

Company registration in Lagos is governed by:

1. Companies and Allied Matters Act (CAMA) 2020 – the principal law that governs business formation and operations in Nigeria.

2. Corporate Affairs Commission (CAC) – the federal agency responsible for registering all companies, business names, and incorporated trustees.

3. Companies Regulations 2021 – detailing procedures and requirements for registration, filing, and compliance.

4. Business Facilitation Act 2022 – which simplified registration and introduced automation of CAC processes.

Although the CAC is a federal body, Lagos remains the most active jurisdiction for company registration because it hosts Nigeria’s largest concentration of businesses, banks, and professionals.

Benefits of Registering a Company in Lagos

1. Legal Recognition: Your company becomes a legal entity separate from you.

2. Access to Funding: Banks, investors, and venture capitalists only work with registered entities.

3. Corporate Credibility: Clients and partners trust registered businesses more.

4. Perpetual Succession: The company continues even if ownership changes.

5. Tax and Contract Eligibility: Enables registration with FIRS, tax payment, and government contracts.

6. Protection of Business Name: No other entity can use your registered name.

7. Ease of Expansion: You can open branches or subsidiaries anywhere in Nigeria.

Step-by-Step Process of Registering a Company in Lagos

All registrations are conducted online through the Corporate Affairs Commission (CAC) portal at www.cac.gov.ng.

Step 1 – Choose a Business Name

The first step is choosing a unique and appropriate name for your company. Your name should reflect your business identity and comply with CAC’s naming rules — avoiding restricted words like “Federal,” “National,” or “Government” without special approval.

Tips for Choosing a Name:

• Keep it simple and memorable.

• Avoid names already in use.

• Avoid misleading or offensive terms.

Examples:
✅ Chaman Properties Limited
✅ Ikoyi Legal Services Limited
❌ Federal Property Solutions Ltd (restricted word)

Step 2 – Conduct a Name Availability Search

Next, log in to the CAC portal and perform a name availability search to confirm your preferred name is not taken.

• Go to https://pre.cac.gov.ng.

• Create a user account.

• Search and reserve your business name for 60 days.

Fee: ₦500
Duration: 24–48 hours.

Once approved, CAC issues an email confirming that your company name has been reserved.

Step 3 – Determine Company Type and Structure

Choose the type of company that best fits your purpose:

1. Private Company Limited by Shares (Ltd) – the most common type.

2. Public Company Limited by Shares (Plc) – for companies listed on the stock exchange.

3. Company Limited by Guarantee – for NGOs and nonprofits.

4. Unlimited Company – rarely used; owners’ liability is not limited.

For most small and medium enterprises in Lagos, a Private Company Limited by Shares is the ideal option.

Step 4 – Determine the Share Capital

Share capital determines the ownership structure and liability of the company.

• Minimum share capital for a small company: ₦100,000.

• For medium or large enterprises: ₦1 million and above.

• For specialized sectors (e.g., real estate, oil and gas, finance): ₦5 million – ₦10 million or more.

You must allocate shares among the shareholders — for example:

• Charles Nkwoka – 70 shares

• Ifeoma Okoye – 30 shares

Step 5 – Appoint Directors and Shareholders

Under CAMA 2020, a company can have just one director and one shareholder. You must provide the following for each:

• Full name and address

• Nationality

• Date of birth

• Identification (NIN, passport, or voter’s card)

• Passport photo

• Email and phone number

Foreign nationals can also serve as directors, but must comply with immigration laws.

Step 6 – Prepare Incorporation Documents

Prepare the following documents, which are uploaded on the CAC portal:

1. Memorandum and Articles of Association (MEMART) – drafted by a lawyer to define company rules, objects, and management.

2. Form CAC 1.1 – application for company registration.

3. Means of Identification of directors/shareholders.

4. Statement of Share Capital and Allotment.

5. Statement of Compliance (signed by a legal practitioner).

6. Proof of Address (utility bill or tenancy agreement).

Step 7 – Pay Filing and Stamp Duty Fees

• CAC filing fee: ₦15,000 – ₦50,000 depending on share capital.

• Stamp duty: Paid to the Federal Inland Revenue Service (FIRS) via Remita.

• Professional fee: (if using a law firm) ₦30,000 – ₦70,000 average.

Step 8 – Upload Documents on CAC Portal

Log in to your CAC dashboard and upload all signed and scanned documents. Review and submit your application.

The CAC will verify your documents, ensure compliance with CAMA 2020, and approve registration.

Step 9 – Certificate of Incorporation

Once approved, the CAC will issue your:

• Certificate of Incorporation

• Status Report

• Memorandum and Articles of Association

• Tax Identification Number (TIN) – automatically generated with your registration.

Timeline: 3–7 working days (with complete documents).

Step 10 – Post-Incorporation Compliance

After registration, your company must comply with post-incorporation obligations:

1. Open a Corporate Bank Account.

2. Register with the Federal Inland Revenue Service (FIRS) for tax compliance.

3. Register with State Internal Revenue Service (LIRS for Lagos).

4. File Annual Returns with CAC.

5. Obtain Business Permits (if required by your industry).

Cost Summary for Company Registration in Lagos

Timeline Overview

Case Study 1 – How Proper Registration Helped Secure a ₦120 Million Contract

In 2021, EcoSmart Energy Solutions, a renewable energy startup in Lekki, registered as a Private Company Limited by Shares with legal guidance from Chaman Law Firm. Within six months, they were invited to bid for a ₦120 million government solar installation project.

Because they had a valid CAC Certificate, TIN, and Company Profile, they easily met all requirements and won the contract. The same opportunity would have been impossible if they were operating as an unregistered business.

Lesson: Proper company registration gives access to high-value contracts, government tenders, and investor partnerships.

Case Study 2 – How a Business Name Lost a Major Investment Opportunity

In 2022, a real estate agency operating as PrimeCity Realtors Enterprises was approached by an investor willing to inject ₦500 million into property development. During due diligence, the investor discovered that the business was only registered as a Business Name, not a Limited Liability Company, meaning there was no formal shareholding or ownership structure.

The investor withdrew, citing legal insecurity and liability exposure.

After consultation with Chaman Law Firm, the owner converted the Business Name to PrimeCity Realtors Limited, registered proper share distribution, and rebranded. Within months, the firm attracted new partnerships and financing opportunities.

Lesson: Registering as a Limited Liability Company not only protects you legally but also enhances investor trust and credibility.

Common Mistakes to Avoid

1. Using agents who are not accredited by CAC.

2. Choosing an unavailable or restricted name.

3. Omitting legal documents like MEMART or compliance statement.

4. Not filing annual returns after incorporation.

5. Ignoring tax registration and business permits.

Frequently Asked Questions (FAQ)

Q1: How long does it take to register a company in Lagos?
Typically 5–10 working days with complete documentation.

Q2: Can one person own a company?
Yes. Under CAMA 2020, you can register a one-man company with one director and shareholder.

Q3: Do I need to visit CAC physically?
No. The process is 100% online. All certificates are issued digitally.

Q4: Can foreigners register a company in Lagos?
Yes. Foreigners can register through CAC but must comply with NIPC and immigration regulations.

Q5: What type of company is best for small businesses?
A Private Limited Liability Company (Ltd) is ideal because it offers flexibility, legal protection, and growth potential.

The Role of Lawyers in Company Registration

A corporate lawyer ensures that your registration complies with CAMA 2020, prepares accurate documents, and avoids future legal or compliance issues.

At Chaman Law Firm, we assist clients in:

• Drafting and reviewing incorporation documents.

• Structuring shareholding and ownership properly.

• Handling post-registration compliance.

• Providing legal and tax advisory services.

Working with a lawyer ensures smooth registration, credibility, and legal compliance.

Why Register Your Company in Lagos

1. Business Hub: Lagos is the financial capital of Nigeria and West Africa.

2. Access to Professionals: Lawyers, accountants, and consultants are readily available.

3. Faster CAC Processing: Lagos offices handle the highest volume of approvals daily.

4. Networking and Contracts: Most multinationals and government agencies operate from Lagos.

Conclusion

Registering a company in Lagos is more than a legal formality — it’s the foundation of your business success. Whether you are a small startup or an established investor, company registration gives you a distinct identity, legal protection, and access to vast business opportunities.

By complying with the Companies and Allied Matters Act (CAMA) 2020 and completing the CAC registration process, your company becomes a separate legal entity capable of owning property, entering contracts, and attracting investors.

In Lagos, where competition is fierce and professionalism is valued, registering your business properly with expert legal guidance is the smartest decision you can make.

Call to Action

At Chaman Law Firm, we specialize in company registration, business incorporation, and corporate compliance in Lagos and across Nigeria.

✅ Our Corporate Services Include:

• Company registration with CAC

• Drafting of Memorandum and Articles of Association (MEMART)

• Business name conversion to Limited Liability Company

• Post-incorporation filings and compliance advisory

• Tax registration and legal documentation

• Legal representation for business operations and contracts

Our experienced corporate lawyers ensure your company registration is fast, compliant, and professional.

📞 0806 555 3671, 08096888818,  08024200080

📧 chamanlawfirm@gmail.com

📍 Chaman Law Firm 115, Obafemi Awolowo Way Allen Junction, Beside Lagos Airport Hotel, Ikeja, Lagos

🌐 www.chamanlawfirm.com

👉 Book a consultation now: www.chamanlawfirm.com/book-consultation

Start your business the right way — legally, securely, and confidently.
Contact Chaman Law Firm today to register your company in Lagos and position your brand for growth, success, and legal protection