How to Register Small Business in Lagos Nigeria

If you’re running or planning to start a small business in Lagos, registering it officially is one of the smartest decisions you can make. Business registration doesn’t just make your operations legal, it also opens the doors to funding, partnerships, and long-term growth.

In this guide, I’ll walk you through how to register a small business in Lagos, Nigeria. You’ll learn how the process works in 2025, what steps to take, how much to budget, how long it takes, and what legal obligations follow after registration.

This guide is based on current Nigerian laws and up-to-date government platforms like the Corporate Affairs Commission (CAC), Federal Inland Revenue Service (FIRS), and Lagos State Internal Revenue Service (LIRS).

Why You Should Register Your Business in Lagos

Before we go into the steps, it’s important to understand why you should register your business:

1. Legal recognition

Once your business is registered, it automatically becomes a legal entity.

2. Access to funding

Banks, investors, and government grants require proof of registration. So after getting your business registered you get more access to funding because you now have trust and leverage.

3. Credibility

Customers and partners trust registered businesses more, and rightly so.

4. Tax registration

After Registering your business, It becomes easier to pay taxes and stay compliant.

5. Business account

You can open a corporate bank account in your business name.

6. Protection

For companies, you enjoy limited liability.

So, with all these, it doesn’t matter you’re running a shop, online business, service-based business, or even a food brand, registering your business puts you in the right legal standing.

Step-by-Step Guide to Registering a Small Business in Lagos

I’m sure you now know the benefits of Business Registration, Now let’s get to step by step process.

Step 1: Choose Your Business Structure

There are different types of business structures you can register under in Nigeria:

• Business Name (Enterprise): Ideal for small one-person businesses. It’s cheaper and faster to register.
• Limited Liability Company (LLC): More formal structure. Ideal for startups that want investors or plan to grow.
• Partnership: Two or more people register together, sharing ownership and profits.
• Incorporated Trustees: For NGOs or non-profit organizations.

For most small businesses in Lagos, registering as a Business Name is the best option because it’s affordable and straightforward.

Step 2: Reserve a Business Name

You’ll need to search and reserve your business name before official registration.

Here’s how to do that:

1. Visit the CAC Portal
2. Create an account
3. Click on “Public Search” to see if your name is available
4. If available, reserve it (you can submit two name options)
5. Pay the name reservation fee (₦500)
6. Get confirmation from CAC (usually within 24–48 hours)

Personal Tip: Choose a unique, relevant name that reflects your services and sounds professional.

Step 3: Register the Business with CAC

Once your name is reserved, move on to actual registration.

For Business Name (Enterprise):

1. Log in to the CAC portal.
2. Fill Form CAC-BN1 online.
3. Upload required documents:
   • Valid ID (NIN, Voter’s Card, Passport, etc.)
   • Passport photograph
   • Utility bill (optional)
4. Pay the registration fee (₦10,000 to ₦15,000)
5. Submit

For Limited Liability Company:

1. Complete Form CAC1.1
2. Prepare Memorandum & Articles of Association (you can use a standard template)
3. Add information for directors and shareholders (names, addresses, ID)
4. Pay stamp duty and CAC fees (based on share capital)
5. Upload documents and submit

Turnaround time is 2 to 7 working days (if documents are correct).

Step 4: Obtain Your Business Registration Certificate and TIN

Once your registration is approved:

• CAC will send your Certificate of Business Name or Certificate of Incorporation via email.
• Your Tax Identification Number (TIN) is generated automatically during registration.

If your TIN is not sent, visit the FIRS TaxPro Max Portal to request or print it.

Step 5: Register with the Lagos State Government

All businesses operating in Lagos must register with the Lagos State Internal Revenue Service (LIRS).

Here’s what to do:

1. Visit lirs.gov.ng
2. Register for:
   • Business premises permit
   • Lagos State tax number (not same as TIN)
   • Personal Income Tax (for Business Names)
3. Pay the business premises levy:
   • Urban area: ₦10,000
   • Rural area: ₦5,000

You may also need to display this levy certificate at your office or store.

Step 6: Open a Business Bank Account

With your CAC certificate and TIN, you can open a business bank account in Nigeria.

You’ll need:

• CAC certificate
• TIN printout
• Valid ID
• Utility bill or lease agreement
• Two passport photos
• Duly filled bank forms

Popular banks for small businesses:

• Access Bank
• GTBank
• Zenith Bank
• First Bank
• Moniepoint (for agency banking or mobile money)

Most Nigerian banks now allow online or walk-in account openings within 1–3 days.

Step 7: Get Any Required Industry Licenses or Permits

Depending on your business type, you may need:

• NAFDAC license (for food, drugs, cosmetics)
• Health permit (for restaurants or salons)
• Professional license (for lawyers, engineers, architects)
• Trade permit (for roadside or kiosk-based businesses)
• Environmental permits (for waste disposal businesses)

Check with your local government office or Ministry of Commerce in Lagos for more details on this.

Step 8: Fulfill Ongoing Legal Obligations

Registration is not a one-time task. You must also do the following:

• File annual returns with CAC:
  • Business Names: ₦1,000/year
  • Companies: ₦5,000/year minimum
• Pay relevant taxes:
  • Business Names: Personal income tax
  • Companies: Company income tax, VAT, and PAYE (if you have employees)
• Renew permits (LIRS business levy and local government licenses)

Failure to do so can lead to penalties or even business closure.

Common Mistakes to Avoid During Registration

• Picking a name that’s too common or already taken
• Not uploading valid ID or clear documents
• Ignoring LIRS or business premises levy
• Forgetting to file annual returns after the first year
• Using someone else’s TIN

Always double-check requirements before submitting.

To Crown it all.

Registering your small business in Lagos is not just a legal requirement, it’s a foundation for your business’s long-term success. It doesn’t matter if you’re running a mini importation store, tech startup, food business, or online brand, taking this step will give you access to funding, credibility, and business security.

Don’t wait until your business starts growing before you register. With online CAC processes now active, it’s easier and faster than ever before. Follow this guide, avoid mistakes, and stay compliant every year.