A business name that has stopped trading does not disappear from CAC's register on its own. Closing it is its own filing, with its own fee.
When to close rather than let it lapse
A business name you are no longer using still counts as registered until CAC processes a cessation filing. Ignoring it does not achieve the same result as closing it properly.
Close it once you are certain you have stopped trading under that name, not while you are still deciding. This article cannot confirm that CAC allows a closed business name to reopen later.
Seasonal or occasional traders sometimes prefer to leave a business name open rather than close and re-register every year. Weigh the annual return cost of staying open against the cessation fee before you decide either way.
The cessation fee and where to pay it
Cessation costs ₦10,000. You file and pay for it directly on the iCRP portal, the same place used for a business name's other post-registration filings.
Compare that against ₦20,000 to register a new business name later, if you think you might trade under a different name again soon. Sometimes leaving a name dormant briefly costs less than closing and re-registering.
What happens to annual returns you already owe
A business name owes ₦5,000 a year in annual returns, due by 30 June, for as long as it stays on the register.
This article cannot confirm whether filing cessation clears returns you already owe. Ask CAC or a company secretary about any outstanding balance before you assume cessation resolves it.
Filing cessation late, after years of unfiled returns, is likely to cost more than filing it as soon as you stop trading. See common CAC annual return filing mistakes for how unpaid returns tend to compound.
What closing does not do
Cessation ends the business name's registration. It does not, on its own, close a business bank account, cancel a lease signed in the business name, or settle debts the business owes.
Handle those separately, ideally before or alongside the CAC filing rather than after.
Tell your bank, your landlord and any supplier who invoices the business name directly. CAC's records and your own commercial relationships do not update each other automatically, so each one needs its own message from you.
After you file
Keep CAC's confirmation of cessation the way you kept the original certificate. A bank or a client may ask for proof that the business name was formally closed, not just left unused.
If you plan to keep trading under a different structure, see business name vs limited company or converting a business name to a limited company for what comes next. Our cost guide to registering a company covers the fees on that side.