Key takeaways: A business name (sole proprietorship) costs ₦13,600–₦15,000 and takes 1–2 days. An LLC costs ₦50,000–₦150,000+ and takes 1–3 weeks. Most small businesses, freelancers, and solo entrepreneurs should start with a business name. You can upgrade to an LLC later.
| Factor | Business Name | LLC |
|---|---|---|
| Owners | 1 person only | 1 or more shareholders |
| Legal status | Not a separate entity | Separate legal entity |
| Personal liability | Unlimited | Limited to investment |
| CAC filing fees | ~₦13,600 | ~₦20,000–₦50,000+ |
| Total cost with agent | ₦15,000–₦50,000 | ₦80,000–₦200,000+ |
| Registration time | 1–2 business days | 7–21 business days |
| Annual returns | Not required | Required |
| Can raise investment | No | Yes |
| Transferable | No | Yes (shares) |
“I need an LLC to be a real business.” Not true. A business name is a legally recognized business structure.
“A business name doesn’t let me open a bank account.” It does. You’ll get an account in the format “YOUR NAME trading as BUSINESS NAME.”
“I should start with an LLC just in case.” Starting with an LLC costs ₦80,000–₦200,000 extra plus ongoing annual filing. Start with a business name and upgrade later if needed.
For most people — freelancers, small business owners, solo entrepreneurs — a business name is the right choice. It’s fast, cheap, and gives you everything you need to operate formally.
Oya Legal handles business name registrations via WhatsApp for ₦15,000 all-in. Takes about 5 minutes.