CAC Registration · 5 min read
Business Name vs Limited Company (LTD) in Nigeria - Which Should You Register?
The difference between a CAC Business Name and an LTD is bigger than most founders realize. Here's how to choose right the first time.
Every Nigerian founder eventually hits the same question: should I register a Business Name or go straight for a Limited Liability Company (LTD)? The wrong choice can cost you contracts, investors, and even your personal assets.
Business Name (Enterprise / Sole Proprietorship)
A Business Name is the simplest CAC registration. It legally lets you trade under a name that isn't your personal name - e.g. 'Chinedu Ventures' instead of 'Chinedu Okafor'.
- Owned by 1 or more individuals - no separate legal entity
- Owner is personally liable for all debts and lawsuits
- Cannot issue shares or onboard equity investors
- Most banks open SME accounts, not corporate accounts
- Cheapest and fastest to register
Limited Liability Company (LTD)
An LTD is a separate legal person from its owners. It can sue, be sued, own property, and sign contracts in its own name.
- Liability is limited to your share capital - your personal assets are protected
- Required by most corporate clients, banks, and government tenders
- Required to onboard investors, issue shares, or apply for grants
- Required for export licenses, NAFDAC, and many regulatory permits
- Required to open a US/UK business bank account (Mercury, Wise, Payoneer)
Quick rule of thumb
If you're freelancing or running a small local hustle - Business Name is fine. If you plan to raise money, sign corporate contracts, export, or scale internationally - register an LTD from day one. Upgrading later means re-doing contracts, bank accounts, and tax records.
Let AMG handle it
Done-For-You or Do-It-Yourself - AMG handles or guides every step. Call/WhatsApp 07038857441, 08103483669, 08158014880 or email growwithaccolade@gmail.com / theaccoladesmedia@gmail.com. Join the WhatsApp Channel: https://whatsapp.com/channel/0029VbBpOtL4IBhKWQtHSs3Z. Fees and timelines update through 2026 - confirm the latest with an AMG agent before paying.