AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Registering a side hustle as a business name with CAC costs ₦1,000 for name reservation and ₦20,000 for registration under the fee schedule gazetted in May 2025, plus ₦5,000 a year in annual returns. It is worth it once customers want to pay a business account, you issue invoices or you need contracts; it creates no new tax, because business-name profit is already your personal income.
What registering actually changes
Most side hustles in Nigeria start unregistered: a WhatsApp catalogue, a personal bank account and a name customers remember. That works until something asks for proof that the business exists. Registering a business name with the Corporate Affairs Commission (CAC) gives you that proof. It does not create a separate legal person, it does not limit your liability and it does not, on its own, make you pay more tax. It records that you, the proprietor, trade under a name.
So the question is not whether registration is good in general. It is whether your hustle has reached the point where the record earns back its cost. For many people it has, sooner than they think; for others, a registered name is paperwork that sits in a drawer.
What it costs, as at the current CAC fee schedule
The CAC's fee schedule published in Gazette No. 92 of 29 May 2025 (schedule dated 31 October 2024) sets these business-name fees:
| Item | CAC fee |
|---|---|
| Name reservation | ₦1,000 |
| Name reservation with a restricted word | ₦5,000 |
| Registration, including certified true copy of registration documents | ₦20,000 |
| Annual return (each year) | ₦5,000 |
| Late annual return | ₦5,000 one-off penalty plus ₦100 per day |
| Change of business name | ₦10,000 |
| Application for cessation | ₦10,000 |
So the minimum first-year outlay to CAC is about ₦21,000, then ₦5,000 a year to keep the record current. If you pay an accredited agent to file for you, their fee is on top. Fees are revised from time to time, so check the amount shown on the CAC portal before you pay. Our step-by-step guide to registering a business name with CAC covers the filing itself, and CAC annual returns covers the yearly filing many people forget.
When it is worth it
Registration tends to pay for itself when one of these is true:
- Customers or clients ask for a business account. Offices, schools and larger buyers often will not pay into a personal account. Banks generally open a business-name account against the certificate of registration, a CAC status report, a Tax ID and the proprietor's ID and BVN, according to a June 2026 summary of bank requirements.
- You issue invoices and receipts. An invoice from a registered name, with its BN number, is easier for a client's accounts team to process and easier for you to defend if a payment is disputed.
- You want to separate money. Mixing hustle income with salary in one account makes it hard to know what you earn and hard to prove income to a landlord, lender or embassy.
- You are applying for contracts, grants or supplier lists. Most ask for a CAC certificate before anything else.
- You are building a brand. Registration stops nobody using the same name on Instagram, but it puts your claim on the public CAC register, which anyone can search.
It is usually not yet worth it if you sell occasionally to friends, earn a few thousand naira a month, or are still testing whether the idea works. Give it a few months of steady sales first.
When a limited company is unnecessary
A private limited company costs more to set up and more to maintain. Under the same CAC schedule, name reservation is ₦1,000 and incorporation of a small private company is ₦10,000 for each ₦1 million of share capital or part of it; annual returns and post-incorporation filings are charged separately, and you may need stamp duty and professional help. A company also files its own tax returns and keeps its own accounts.
A company becomes worth considering when you need limited liability (you take on stock on credit, sign large contracts or employ people), when investors want shares, or when a client or regulator insists on dealing with a company. For a one-person hustle selling services or small volumes of goods, a business name usually does the job. Our comparison of business name or limited company goes through the trade-off in detail.
The tax consequences, without the myths
Registering does not create a new tax. Profit from a business name is your personal income, taxed together with any salary under personal income tax by your state tax authority. What registration changes is visibility: a business account and a CAC record make your income easier to see, so it is wise to treat tax as part of the plan from the start.
- Personal income tax
- Under the Nigeria Tax Act 2025, as summarised by BusinessDay in January 2026, the first ₦800,000 of taxable income is taxed at 0%, the next ₦2.2 million at 15%, then higher bands up to 25%. Self-employed people file an annual self-assessment, due by 31 March.
- Tax ID
- The Nigeria Tax Administration Act 2025 requires every taxable person to register and obtain a Tax ID; failure to register carries a penalty of ₦50,000 for the first month and ₦25,000 for each later month. Banks must ask for it.
- VAT
- Under the Nigeria Tax Administration Act 2025 (ss.22 and 147, NRS-published text), a small business with turnover of ₦100 million or less and fixed assets of ₦250 million or less, other than professional services, does not register for, charge or file VAT. Techpoint's May 2026 guide quotes ₦50 million, the figure in the June 2025 gazette print.
- Company tax
- If you do incorporate, a small company with turnover of ₦100 million or less and fixed assets below ₦250 million pays 0% company income tax, but professional-service firms are excluded, per the same guide.
Worked example
Example only: Kemi bakes cakes at weekends and makes ₦150,000 profit a month, ₦1.8 million a year, with no salary. Ignoring reliefs, the first ₦800,000 is taxed at 0% and the remaining ₦1,000,000 at 15%, which is ₦150,000 for the year. If she also earns a salary taxed through PAYE, the cake profit sits on top and may fall into a higher band. Our guide on tax on side hustle income works through that case. This is information, not tax advice; your state tax office or a tax adviser can confirm your position.
What to check first
- Do you have at least three months of regular sales, and do customers ask to pay a business account?
- Search the CAC register for your preferred name and one back-up.
- Budget about ₦21,000 for CAC fees plus ₦5,000 every year after, and put the annual return date in your calendar.
- Get your Tax ID and decide how you will keep records of income and costs.
- Only consider a limited company if you need limited liability, investors or a client who insists.
Where Pryme fits
Once you have a certificate, a separate business account keeps hustle money apart from personal money. A Pryme Business Account can be opened from the app, with invoicing so clients pay against a numbered invoice and bank-transfer checkout for online orders. Naira deposits are held by Solid Allianze Microfinance Bank, licensed by the CBN.
Questions people ask
How much is business name registration with CAC now?
Under the CAC fee schedule gazetted on 29 May 2025, registration including a certified true copy is ₦20,000 and name reservation is ₦1,000. Annual returns are ₦5,000 a year. Check the portal for the current amount before paying.
Can I register a side hustle while working a 9-to-5?
CAC does not ask about your employment. Your employment contract might restrict outside work, and public servants face separate rules on running private businesses, so read your contract or conditions of service first.
Do I pay more tax once my business name is registered?
No new tax is created. Business-name profit is your personal income and was taxable before registration too. Registration and a business account make that income more visible, so file accurately.
Do I need a limited company to open a business account?
No. Banks open accounts for registered business names, usually against the certificate, a status report, a Tax ID and the owner's ID and BVN. Requirements differ by bank.
Sources
- CAC: New Schedule of Fees (Gazette No. 92 Vol. 112, 29 May 2025) · accessed Oct 2026
- WithinNigeria: Opening a corporate bank account after CAC registration (9 Jun 2026) · accessed Oct 2026
- BusinessDay: Nigeria Tax Act 2025 personal income tax bands (12 Jan 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (full text) · accessed Oct 2026
- Techpoint Africa: Nigerian tax reform acts explained (5 May 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025, ss.22 and 147 (NRS-published text, edited 1 Jan 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.