Converting a business name to a limited company is a common search, but CAC has no single filing that does this. Here is what actually happens, and what it costs.
Why there is no direct conversion at CAC
A business name and a limited company are different kinds of register entry, not two stages of the same one. CAC has no filing labelled "convert" that turns one into the other.
What owners actually do is register a brand new company, then decide separately what happens to the business name. Treat the two as separate actions with separate fees, not one upgrade.
Registering the new company
The new company goes through the same process as any first-time incorporation: reserve a name for ₦1,000, then incorporate for ₦10,000 for every ₦1 million of share capital or part of it at the lowest share-capital band.
See how to register a business name at CAC for how that process compares, or how CAC calculates your incorporation fee for how the company fee scales with share capital.
You can usually apply to keep a similar trading name, but search the register first. A name already taken by another company will not clear reservation twice.
Deciding what happens to the old business name
Once the new company is registered and running, you can leave the business name dormant, or apply to close it for ₦10,000.
An unclosed business name still owes its own annual return, ₦5,000 a year, whether or not you still trade under it. That filing does not stop just because a related company now exists.
Weigh the cessation fee against years of annual returns on a business name you no longer use. A few years of neglected returns and penalties can cost more than closing it properly now.
Moving contracts, accounts and staff across
Contracts signed under the business name do not automatically move to the new company. Clients, suppliers and your bank each need telling separately, and some contracts may need reassigning in writing.
The new company also needs its own Tax ID, linked to its RC number rather than the business name's BN number. Bring in an accountant if the business has active contracts or staff at the point of the switch.
Staff contracts, in particular, are not automatically inherited by the new company. Treat the move as similar to a small business changing hands, even though the same person owns both sides of it.
What this costs altogether
Budget for the new company's registration, ₦1,000 plus ₦10,000 for every ₦1 million of share capital or part of it, and decide separately whether the ₦10,000 cessation fee for the old business name is worth paying now or later.
There is no combined fee for this move, because there is no combined filing. If you have not already weighed the two structures against each other, our business name vs limited company comparison is worth reading first.
Browse the CAC registration hub for the rest of this series, or our cost guide to registering a company for the full incorporation cost before you commit to the switch.