Introduction

Would you like to know how to register a crypto company in Nigeria with CAC? Then, this guide is for you.

With the introduction of the Company Registration Portal (CRP) by the Corporate Affairs Commission (CAC), registering a business in Nigeria has become easier. 

Read below on how to register your crypto company in Nigeria with CAC 

Choose the Right Business Structure

In Nigeria, businesses can be registered as:  

• Business Name (Sole Proprietorship or Partnership)
• Company (Private or Public Limited)
• Incorporated Trustees
• Limited Liability Partnership (LLP)

However, cryptocurrency businesses cannot register as a Business Name.

The best option is to register as a company, either private or public.  

Why Crypto Businesses cannot Register as a business name

The major reason is that crypto businesses require a minimum share capital.

Additionally, they must be licensed by the Securities and Exchange Commission (SEC).   And only registered companies can meet SEC’s requirements.   

Minimum Share Capital Requirement to register a crypto platform

The minimum share capital for a crypto company depends on its structure:  

A private company needs at least N100,000 minimum share capital while a public company needs at least N2,000,000 minimum share capital.

However, if the company has a foreign partnership or ownership, the minimum share capital is N10,000,000.

Additionally, the Security and Exchange Commission (SEC) has a requirement of N500,000,000 share capital before you can register with them.

Documents Needed for CAC Registration

To register your crypto company with CAC, prepare the following:

Proposed company name: This name must not have been registered with the CAC and it must be unique

Business objectives: describe the services offered by your crypto platform

Company address: Add the company’s head office and in case there are branches, add it as well.

Email and phone number of the company  

Details of shareholders and directors: These include name, address, ID, passport photo, e-signature

Share capital details: N500 million minimum for crypto

Witness details for Memorandum & Articles of Association  

How long does it take to register a crypto platform in Nigeria with CAC

Once all documents are submitted, CAC takes 7–14 working days to complete registration.  

It may be more, depending on the specific situations or query like error or missing documents around your registration.

Cost of Registering a Crypto Company

You’ll incur several costs while registering a crypto business with CAC. Some the cost include:

CAC filing fees: This depends on share capital

Stamp duty fees: This is paid to FIRS

Professional fees: paid to lawyers or CAC agents

7.5% VAT on professional fees  

The total cost is between N5m to 10m depending on share capital. 

SEC Licensing for Crypto Businesses in Nigeria 

After registering with CAC, you must apply for a license from the Security and Exchange Commission (SEC).

The SEC regulates crypto businesses under the 2022 Digital Assets Rules.  

Types of Crypto Licenses in Nigeria:

1.  Crypto Custodian 

A crypto custodian is a licensed platform that securely stores digital assets like Bitcoin and Ethereum for clients.

It provides wallet storage, ensuring protection against hacks. 

In Nigeria, the SEC requires custodians to meet strict security and compliance standards. They must also have insurance coverage for stored assets. 

Businesses offering custody services must register with CAC and obtain SEC approval. This ensures trust and regulatory compliance in Nigeria’s growing crypto market.  

2. Crypto Trading Platform

A crypto trading platform facilitates P2P crypto trading without no fiat conversion. It must register with CAC, enforce KYC rules, and ensure secure transactions.

Binance P2P and Remitano are crypto trading platforms. 

3. Crypto Exchange 

This allows crypto-to-fiat conversions like NGN, USD. Requires CAC registration, SEC license, and ₦500M capital. 

It must implement KYC and AML checks. Luno, Quidax are exchange platforms.

4. Digital Asset Issuer

A digital asset issuer is a company that creates and sells new cryptocurrencies or tokens.

These platforms must register with CAC, disclose token economics, and get SEC approval before launch.

Each license has different requirements, so check SEC’s specific guidelines before applying.

Conclusion 

Registering a crypto business in Nigeria involves incorporating a company with CAC, complying with foreign ownership rules, if applicable and applying for SEC license before operation.  

By following these guidelines, your crypto platform will be legally recognized in Nigeria.