Choosing between a private and a public company shapes more than your paperwork. It also changes what CAC charges you from day one, and how much disclosure your company owes afterwards.
What sets a private company apart from a public one
A private company restricts who can hold its shares and cannot invite the public to subscribe for new ones. Most new businesses in Nigeria register this way.
A public company can offer shares more widely, and it carries more disclosure obligations because of that. Very few companies start out as public. Most that reach that stage convert later, with a lawyer guiding the process.
This article covers the registration and fee side only. Ask a corporate lawyer which structure actually fits your funding and governance plans.
The incorporation fee gap
CAC charges a private company ₦10,000 for every ₦1 million of share capital or part of it. A public company pays ₦20,000 for every ₦1 million of share capital or part of it instead, double the private rate for the same band of share capital.
Our guide to how CAC calculates your incorporation fee walks through how that rate climbs as your share capital rises. The gap holds at every band, not just the first one.
Other CAC costs that scale the same way
The pattern repeats elsewhere. A status report costs ₦5,000 for a private company, with a higher fee for a public one. See the CAC status report: what it is and its fee.
Expect this gap on many other post-incorporation filings, though not every CAC fee scales this way. Check the fee before you assume a public company's paperwork costs the same as a private one's.
What this article cannot decide for you
Whether your business should register as private or public is a governance and funding question, not just a fee comparison. It touches on how you plan to raise money, who can hold shares, and how much you are prepared to disclose publicly.
A corporate lawyer or accountant can weigh that against your actual plans. This article only compares what CAC charges each type at registration.
Choosing which one fits before you reserve a name
Decide the structure before you reserve a name. Converting later is possible, but it is its own process with its own cost and its own paperwork.
For most new businesses, a private company is the simpler and cheaper start. It suits a founder team that is not yet raising from the public and wants to keep the paperwork light.
If you are certain you need a public company from day one, budget for ₦20,000 for every ₦1 million of share capital or part of it and the wider disclosure that comes with it. That certainty usually comes from a lawyer, not a guess.
Once you have decided, you can register your company on CAC's portal or start a CAC company registration directly.