
Registering your business with the Corporate Affairs Commission (CAC) is one of the smartest decisions you can make as an entrepreneur in Nigeria. It gives your business legal backing, credibility, and access to opportunities like grants, loans, and corporate partnerships.
But here’s the thing — many people make costly mistakes during the registration process. These mistakes can delay approval, lead to rejection, or even force you to start all over again.
Whether you’re registering a business name, limited liability company (LLC), or NGO, understanding what not to do will save you time, money, and frustration.
In this article, we’ll walk you through the top mistakes to avoid when registering your business and how to do it the right way — especially if you’re working with experts like MyDigitalHandle.
1. Choosing a Business Name Without Checking Its Availability
This is one of the most common mistakes people make. You come up with a nice name for your business, design the logo, and even start marketing it — but when you finally go to register, CAC rejects it because someone else already owns the name.
Why it’s a mistake:
CAC doesn’t allow two businesses to have identical or confusingly similar names. If another business has already taken the name, your application will be declined.
What to do instead:
Always do a name search first. Visit the CAC portal or work with a professional to check if your preferred name is available. It’s also smart to have at least two or three backup names ready in case your first choice is unavailable.
At MyDigitalHandle, we handle the name search for you to make sure your preferred name is available before proceeding with registration.
2. Not Defining the Right Business Type
Many people confuse Business Name registration with Limited Liability Company (LLC) or NGO registration. These structures are not the same — and choosing the wrong one can affect how your business operates legally and financially.
Why it’s a mistake:
If you register as a Business Name when you actually need an LLC, you might face problems later when applying for contracts, funding, or partnerships. On the other hand, if you register an LLC when you only need a small enterprise setup, you’ll end up spending more money and dealing with unnecessary paperwork.
Understand what each type means before registering:
- Business Name (₦45,000) – For small or sole proprietorships (e.g., POS agents, fashion designers, freelancers).
- Limited Liability Company (₦100,000) – For growing businesses that want separate legal protection for owners.
- NGO / Incorporated Trustees (₦200,000) – For non-profits, charities, or faith-based organizations.
If you’re unsure which one fits your business best, a CAC-accredited expert can help you decide.
3. Using Incorrect or Incomplete Business Information
Another major mistake people make is providing wrong or incomplete information during registration.
This could be anything from spelling errors in your name, to incorrect addresses, to wrong director details.
Why it’s a mistake:
CAC is very strict about accuracy. Even a small error can cause delays or force you to repeat the registration process entirely.
What to do instead:
Before submitting your details, double-check everything — names, addresses, ID numbers, email addresses, and phone numbers.
If you’re registering a company, make sure your shareholders and directors provide valid means of identification.
At MyDigitalHandle, we verify all details before submission to ensure your documents are error-free.
4. Ignoring the “Nature of Business” Section
When filling out your CAC form, there’s a part where you describe what your business does — your “Nature of Business.”
Many people rush through this section or fill in vague descriptions like “general merchandise” or “consulting.”
Why it’s a mistake:
This description defines what your business is legally allowed to do. If you choose something too general or unrelated, it can limit your opportunities or cause issues with licensing in the future.
What to do instead:
Be specific. If you sell fashion accessories, say “fashion retail and clothing production.” If you offer tech services, write “software development and digital consulting.”
The clearer your description, the more legitimate your business looks — especially when applying for contracts or partnerships.
5. Not Understanding Share Capital (For Companies Only)
If you’re registering a limited liability company (LLC), you’ll be required to declare your share capital — basically the total value of your company’s shares.
Some people either overstate or understate this amount without knowing what it means.
Why it’s a mistake:
Declaring too high a share capital increases your registration fee unnecessarily, while declaring too low can make investors or clients doubt your business capacity.
What to do instead:
For most small companies in Nigeria, a share capital of ₦1,000,000 is ideal.
If you’re unsure, talk to a CAC professional — they’ll guide you based on your business goals.
6. Failing to Include All Required Documents
Many applications are delayed because the applicant didn’t attach all the necessary documents.
Commonly missed documents include:
- Valid means of ID (National ID, International Passport, Voter’s Card, or Driver’s License)
- Passport photographs of directors/shareholders
- Utility bill (for address confirmation)
- Memorandum and Articles of Association (for LLCs or NGOs)
Why it’s a mistake:
Missing or unclear documents lead to rejection or long processing times.
What to do instead:
Prepare all required documents ahead of time, and make sure they are scanned clearly.
When you work with MyDigitalHandle, we help you compile and upload every required document correctly.
7. Not Getting a Tax Identification Number (TIN)
Some people think once CAC registration is done, that’s it. But that’s only half of the process.
Why it’s a mistake:
Without a Tax Identification Number (TIN), your business can’t open a corporate bank account or apply for government contracts. It’s also a requirement for paying taxes and staying compliant.
What to do instead:
After registration, apply for your TIN immediately — or let your CAC agent help you process it along with your registration.
At MyDigitalHandle, we include TIN registration in our full package so you don’t have to stress.
8. Registering Without Professional Help
This is perhaps the biggest mistake of all. Many entrepreneurs try to handle the entire CAC registration process alone to save money — but end up making errors that cost them more in the long run.
Why it’s a mistake:
CAC processes and requirements change from time to time. Missing one update can lead to delays or outright rejection.
What to do instead:
Always work with a CAC-accredited agent or a professional registration service like MyDigitalHandle.
We handle everything — from name search to documentation, payment, and TIN — while keeping you updated every step of the way.
9. Not Keeping Your CAC Documents Safe
After your registration is complete, CAC sends your documents (like your Certificate of Incorporation, Status Report, or Business Name Certificate) via email.
Some business owners forget to download or safely store these documents.
Why it’s a mistake:
You’ll need these documents to open a bank account, apply for grants, or verify your business. Losing them can cause unnecessary stress later.
What to do instead:
Download and back up your CAC documents in multiple places — your email, flash drive, and Google Drive. You can also print physical copies for safekeeping.
10. Not Following Up on Updates
CAC occasionally updates its system or requests additional documents for clarification. Many business owners ignore follow-up emails or delay responses, causing their applications to stall.
What to do instead:
Check your email regularly for CAC messages, and respond promptly.
When you register through MyDigitalHandle, we handle all correspondence for you, ensuring your registration moves smoothly and quickly.
Final Thoughts
Registering your business in Nigeria is more than a legal requirement — it’s a foundation for growth, trust, and opportunities.
But doing it the wrong way can waste time and money.
Avoiding these mistakes ensures your registration is smooth, fast, and stress-free.
If you want a seamless CAC registration experience, MyDigitalHandle can help you handle the process from start to finish — including business name search, TIN, and official CAC documentation.
Frequently Asked Questions (FAQs)
1. How long does business registration take?
It usually takes 3 to 10 working days, depending on the type of business and CAC approval timeline.
2. Can I register my business name myself?
Yes, but using a CAC-accredited agent ensures accuracy and saves you from unnecessary delays.
3. What type of registration should I choose?
It depends on your business structure — Business Name, LLC, or NGO. A professional can help you decide.
4. Do I need a TIN after registering my business?
Yes. TIN is mandatory for paying taxes, opening business bank accounts, and accessing government programs.
5. How much does business registration cost?
At MyDigitalHandle:
- Business Name: ₦45,000
- Limited Liability Company: ₦100,000
- NGO: ₦200,000