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
You only have to register if you trade under a name other than your own true name (CAMA 2020, section 814); a freelancer invoicing as "Chidi Okeke" need not. Registering a business name helps with corporate clients, tenders and business accounts. Under the CAC fee schedule gazetted on 29 May 2025 it costs ₦1,000 to reserve, ₦20,000 to register and ₦5,000 a year for the annual return.
The legal trigger
Section 814 of the Companies and Allied Matters Act 2020 requires registration when an individual carries on business under a name that is not their true surname, with or without their forenames or initials. So:
- "Amaka Eze" designing logos and invoicing as Amaka Eze: no registration required.
- "Amaka Eze" invoicing as "Pixel Grove Studio": the business name must be registered.
- "Amaka Eze" using "Pixel Grove Studio Ltd": that requires a company, and using "Ltd" without one is penalised under section 739.
Many freelancers stay unregistered for years and work happily on their own name. The question is less "must I" than "what does it get me". The useful way to decide is to list the clients, payments and accounts you are losing, or making harder, because you have no registered name, and weigh that against roughly ₦5,000 a year and one filing every June.
When a business name helps
- Corporate and government clients. Procurement teams often ask for a CAC certificate and status report before onboarding a vendor.
- Business accounts. Banks usually open a business account in a registered name against CAC documents; an unregistered name generally cannot have its own account.
- Invoices and trust. A registered name and BN number on an invoice tell the client someone accountable stands behind it, and a client can check it on the free CAC public search.
- Protecting your brand name. Once registered, CAC will not register an identical name for someone else.
- Separating money. A business account in the BN makes bookkeeping and tax records far easier.
When it does not
- You work through platforms that pay you personally and clients never ask for registration.
- Your income is small and irregular, and the yearly filing would be one more thing to forget.
- You need limited liability: a business name gives none. If a client sues, your personal assets are exposed either way. For that, compare business name and limited company.
What it costs, year by year
| Item (CAC schedule, May 2025) | Fee | When |
|---|---|---|
| Name reservation | ₦1,000 | Once |
| Registration and certified copies | ₦20,000 | Once |
| Annual return | ₦5,000 | Every year by 30 June, from the year after registration |
| Status report (if a client or bank asks) | ₦5,000 | As needed |
| Late annual return penalty | ₦5,000 one-off | If you miss the deadline |
| Daily default penalty (other defaults) | ₦100 a day | Listed separately in the schedule |
Worked example: three years
Example only. Year 1: ₦1,000 + ₦20,000 = ₦21,000 (no annual return in the registration year, section 822). Year 2: ₦5,000 annual return. Year 3: ₦5,000. Three-year total: ₦31,000, about ₦10,333 a year. If one client needs a status report each year, add ₦5,000 a year, making ₦46,000 over three years. Miss a year's return and add at least the ₦5,000 one-off penalty.
Section 822 also says the annual return should be accompanied by a financial statement for January to December of the previous year. For a freelancer that can be a simple income and expenses summary, but keep records through the year so it is not a scramble in June.
What clients usually ask for
If you do register, keep these ready in one folder, because procurement teams ask for them again and again:
- The CAC certificate of registration and the registration details showing the proprietor.
- A recent status report (₦5,000 from CAC) if the client wants proof the business is current.
- Your tax identification details.
- An invoice template showing the registered name, BN number and the account the client should pay, in the business name.
- Your ID, since the proprietor is the person behind the business.
A client paying a registered name into an account in that same name is a cleaner audit trail for them as well as for you, and that is often why larger clients insist on registration before they pay a freelancer for a long engagement.
Steps if you decide to register
- Choose a name you can keep for years; changing it later costs ₦10,000.
- Search it free on the CAC public search, then reserve it on the portal.
- Register with your ID and photograph; you can do this without an agent (see registering yourself).
- Register for tax and get your tax ID.
- Open an account in the business name and put the BN number on your invoices.
- Diary 30 June every year for the annual return.
Where Pryme fits
Freelancers paid from abroad can hold USD, GBP and EUR alongside naira in one Pryme account, with local account details for each, and convert with Swap only when they choose. Once registered, a Business Account adds invoicing. See also how freelancers receive dollars.
Questions people ask
Do I need CAC registration to freelance in Nigeria?
Not if you work under your own name. CAMA 2020 requires registration only when you trade under a different business name.
How much does it cost to keep a business name each year?
₦5,000 for the annual return under the May 2025 CAC fee schedule, filed by 30 June each year after the registration year.
Can I open a business account without CAC?
Banks generally require CAC documents for a business account in a trading name. Without registration you would use a personal account in your own name.
Business name or limited company for a freelancer?
A business name is cheaper and simpler; a company gives limited liability and suits larger contracts or investors, but has more filings.
Sources
- Companies and Allied Matters Act 2020, full text (2020) · accessed Oct 2026
- CAC New Schedule of Fees, Official Gazette No. 92 Vol. 112 (29 May 2025) · 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.