How to Register and License Your Business with CAC and Get NAFDAC Approval in Nigeria
Starting a business in Nigeria goes beyond having capital and customers. To make your business legally recognized and trusted, you must register with the Corporate Affairs Commission (CAC) and, if your business deals with food, drugs, cosmetics, medical devices, or packaged water, you’ll also need NAFDAC approval.
In this comprehensive guide, you’ll learn:
- What CAC and NAFDAC mean
- Why CAC registration and NAFDAC approval are important
- Step-by-step process to register your business with CAC
- Step-by-step process to get NAFDAC approval for your product
- The costs and duration of CAC and NAFDAC registration
- Frequently asked questions about CAC and NAFDAC in Nigeria
By the end, you’ll have a complete roadmap to make your business legally compliant and trusted in the Nigerian market.
What is CAC in Nigeria?
The Corporate Affairs Commission (CAC) is the federal government agency responsible for regulating and registering businesses in Nigeria. It was established by the Companies and Allied Matters Act (CAMA).
CAC is like the “birth certificate” of your business. Once registered, your business becomes a legal entity that can operate officially in Nigeria.
How to Register and License Your Business with CAC and Get NAFDAC Approval in Nigeria
Types of CAC Registration
- Business Name (BN): Best for sole proprietors, freelancers, and small businesses.
- Private Limited Liability Company (Ltd): Ideal for bigger businesses with shareholders.
- Incorporated Trustees: For NGOs, religious bodies, and associations.
What is NAFDAC in Nigeria?
The National Agency for Food and Drug Administration and Control (NAFDAC) is the agency that regulates and controls the manufacture, importation, exportation, advertisement, and sale of consumable and pharmaceutical products in Nigeria.
If your business deals with products like food, water, beverages, cosmetics, herbal medicines, or pharmaceuticals, you must get NAFDAC registration and approval before selling.
Why You Need CAC Registration and NAFDAC Approval
Many Nigerian entrepreneurs ask: “Do I really need CAC and NAFDAC approval?”
The answer is yes, and here’s why:
- Legal Protection: Your business becomes recognized by law.
- Customer Trust: Consumers feel safer buying NAFDAC-approved products.
- Access to Opportunities: Banks, investors, and supermarkets only deal with registered businesses.
- Export Opportunities: You cannot export unapproved products.
- Avoid Penalties: Operating without CAC and NAFDAC can lead to fines, product seizure, or business closure.
Step-by-Step Guide: How to Register Your Business with CAC
Registering your business with CAC has been made easier through the CAC Online Portal.
Step 1: Decide on Your Business Structure
Before registering, choose the right business type:
| Business Type | Best For | Cost Range | Legal Benefits |
| Business Name (BN) | Small businesses, one-man enterprise | ₦10,000–₦12,000 | Easy registration, minimal paperwork |
| Private Limited Liability Company | Medium to large businesses | ₦25,000–₦50,000+ | Protects personal assets, easier access to funding |
| Incorporated Trustees | NGOs, Churches, Foundations | ₦20,000–₦50,000+ | Legal recognition for non-profits |
How to Register and License Your Business with CAC and Get NAFDAC Approval in Nigeria
Step 2: Name Search and Reservation
Go to CAC Public Search and check if your preferred business name is available.
- If available, reserve it for 60 days.
- If not available, try alternatives until one is accepted.
Step 3: Fill Out Registration Form
Log in to the CAC portal and fill in details such as:
- Business name
- Business address
- Business objectives
- Proprietor or director details
- Identification documents
Step 4: Upload Required Documents
Depending on the type of registration:
For Business Name:
- Passport photograph
- National ID, Driver’s License, Voter’s Card, or International Passport
- Signature
For Limited Liability Company:
- Memorandum and Articles of Association (MEMART)
- Particulars of Directors
- Statement of share capital
- Means of identification
Step 5: Pay the CAC Registration Fee
Typical CAC registration fees in 2025:
- Business Name: ₦10,000 – ₦12,000
- Private Limited Company: ₦25,000 – ₦50,000 (depending on share capital)
- NGOs/Trustees: ₦20,000 – ₦50,000+
Step 6: Download Your CAC Certificate
Once approved, you can download:
- Certificate of Registration (for business name)
- Certificate of Incorporation (for company)
- CAC Registration Number
At this point, your business is officially recognized in Nigeria.
Step-by-Step Guide: How to Get NAFDAC Approval in Nigeria
Now that your business is CAC-registered, let’s move to NAFDAC licensing.
How to Register and License Your Business with CAC and Get NAFDAC Approval in Nigeria
Step 1: Confirm if Your Product Needs NAFDAC Approval
Products that need NAFDAC approval include:
- Food and beverages
- Sachet and bottled water
- Cosmetics and skincare products
- Drugs and herbal medicines
- Medical devices and chemicals
If your product is not consumable or pharmaceutical, you may not need NAFDAC approval.
Step 2: Register Your Business with CAC
You cannot apply for NAFDAC approval without a CAC certificate. This proves your business is legal.
Step 3: Apply Through the NAFDAC e-Registration Portal
Go to the NAFDAC Registration Portal and create an account. Select the appropriate product category.
Step 4: Prepare and Submit Required Documents
You’ll need:
- CAC certificate of incorporation or business name registration
- Evidence of trademark (if applicable)
- Certificate of analysis (lab test report)
- Product label design (must include ingredients, expiry date, NAFDAC logo space, etc.)
- Manufacturing address and process
- Evidence of payment of NAFDAC fees
Step 5: Facility Inspection
NAFDAC inspectors will visit your production site to check:
- Hygiene conditions
- Production equipment
- Storage facilities
- Staff safety compliance
Step 6: Product Laboratory Testing
Your product will be tested to ensure:
- It is safe for consumption or use
- It meets NAFDAC standards
- It is free from harmful substances
Step 7: Pay NAFDAC Fees
NAFDAC fees vary depending on product type:
| Product Type | Cost Range |
| Packaged food & water | ₦50,000 – ₦100,000 |
| Cosmetics & skincare | ₦60,000 – ₦120,000 |
| Herbal medicines | ₦70,000 – ₦150,000 |
| Pharmaceuticals | ₦150,000 – ₦400,000 |
Step 8: Get Your NAFDAC Number
Once approved, you’ll receive:
- NAFDAC Certificate of Registration
- Unique NAFDAC Number (must be printed on your product packaging)
This number proves your product is safe and government-approved.
Timeline for CAC and NAFDAC Registration
- CAC Registration: 1–3 weeks
- NAFDAC Registration: 2–6 months
Benefits of CAC and NAFDAC Registration for Nigerian Businesses
- Access to supermarkets and big distributors
- Ability to secure loans and grants
- Protection from government sanctions
- Ability to expand into exports
- Consumer confidence in your brand
Common Mistakes to Avoid
- Using unprofessional product labels
- Starting NAFDAC registration without CAC
- Submitting incomplete documents
- Producing in unhygienic environments
- Using expired or fake lab results
FAQs About CAC and NAFDAC in Nigeria
1. Can I sell my products without NAFDAC number?
You can sell on a small scale, but supermarkets, pharmacies, and export markets will reject your products without NAFDAC approval.
2. Do I need a lawyer for CAC registration?
Not necessarily. You can register directly on the CAC portal, but using an accredited agent makes the process faster.
3. How long does NAFDAC approval last?
NAFDAC approval usually lasts 5 years. After that, you must renew it.
4. Can I use one CAC registration for multiple products?
Yes, but each product requires separate NAFDAC approval.
Final Thoughts
Registering your business with CAC and getting NAFDAC approval are crucial steps for every serious Nigerian entrepreneur. They don’t just protect your business legally but also give your products credibility, consumer trust, and access to bigger opportunities.
If you plan to grow your business in Nigeria, start by registering your business with CAC, then proceed to NAFDAC for product approval. These steps may seem long, but they are worth it in the long run.
