CAC Business Name vs. Limited Company: The Legal & Tax Guide for Nigerian Tech Founders

The First Legal Decision That Defines Your Startup

When launching a new digital agency, SaaS product, or consultancy in Nigeria, the very first administrative step is incorporation with the Corporate Affairs Commission (CAC).

Yet, hundreds of founders make the costly mistake of choosing the wrong corporate vehicle—only to discover months later that they cannot open an enterprise bank account, hire international staff, or issue shares to co-founders.

Core Structural Comparison

Which One Should You Choose?

Choose a Business Name If: - You are a solo freelance copywriter, graphic designer, or video editor testing the waters. - You have zero employees and expect under ₦5,000,000 annual turnover. - You need a simple branded bank account to receive domestic Naira payments quickly.

Choose a Limited Company (Ltd) If: - You have co-founders and need to divide equity percentages. - You plan to invoice international clients in foreign currency. - You are building software, an e-commerce platform, or a growth agency with full-time staff. - You plan to seek accelerator backing or institutional venture capital.