CAC Registration Guide For Travel Agency in Nigeria

Are you thinking of venturing into travel and tourism soon? In this guide, I will walk you through the process, cost and requirements to do CAC registration for your travel agency in Nigeria.

Starting a travel and tours company in Nigeria will generally be considered a good venture. Regardless of the insurgency in Nigeria and corrupt system, the tourism industry has a growing market that is untapped.

According to data by Market Research, the Nigerian travel & tourism industry recorded revenues of $14 billion in 2024, representing a compound annual growth rate (CAGR) of 0.2% between 2019 and 2024.

Starting a travels and tours company in Nigeria will require CAC registration. However, this kind of registration does not fall under the regular and general kind of registration.

Just last week, we registered a travel and tours company (Looseit Travels & Tours) as seen from the screenshot above

It is important to understand the right company structure, cost and share capital requirement before committing to the registration.

What is a Travel Agency Company?

A travel agency company otherwise called travels and tours is a company registered, licensed and saddled with the responsibility of acting as the middlemen between travelers and government agencies and other supplies

In Nigeria, travels and tours companies usually help clients plan, select, and book various aspects of their trips such as flight tickets, accommodations, car rentals, and tour packages on behalf of airlines, cruise lines, and resorts

Services Offered by Travel Agencies in Nigeria

Comprehensively, companies engaging in travels and tours in Nigeria engage in the following services

• Flight ticket bookings and reservations
• Arrangement of travel packages to meet client needs
• Corporate travel management
• Hotel and accommodation reservations
• Visa processing
• Travel insurance services

Importance of CAC Registration For Travel & Tours Company

Generally, any company operating in Nigeria without registration already violates CAMA 2020 rules that states that an entity operating in Nigeria must get registered with the Corporate Affairs Commission within 18 days starting from date of operating.

Therefore, CAC registration is not just a documentation process but a mandatory requirement and bedrock of any company’s success in Nigeria.

Legal Requirements for Operating a Travel Agency in Nigeria

The following are must-do if you want to start a travel and tours company in Nigeria and thrive

• Securing CAC registration
• Obtaining travel agency license from the right authority
• Getting registered for Tax
• Obtaining other government compliance documents

Risks of Running an Unregistered Travel Business

• Loss of company name to competitors
• Government fines and court order to cease operation
• No limited liability protection
• The company can not operate a corporate account in Nigeria
• Loss of public trust and goodwill
• The company can not apply for loans, grants or even secure contracts

Benefits of Registering Your Travel Agency

Registering your travel agency in Nigeria with CAC gives you access to endless opportunities. These are as follows

• It will boost the company’s credibility and goodwill with both the government and the public
• Access to Corporate Clients from different areas
• Access to international market
• The company will be eligible to apply for government contracts and big firms
• Ability to operate corporate account with any commercial bank
• The company enjoys limited liability protection
• The company can sue and be sued in its name
• Ability to acquire assets in the name of the company

Best CAC Business Structure for a Travel Agency

When doing CAC registration, most business owners trying to employ cheap services end up registering the wrong business structure.

CAC generally provides registration through the following categories

• Business name (Sole proprietor and partnership)
• Company
• NGO

For travels and tours company, the right registration structure is Private Company Limited By Shares.

That’s not all

The company been a travel agency, must be registered with a minimum share capital of 30 million shares 

If the company has a Director or shareholder that is not a Nigerian, then it automatically becomes a foreign participation. Therefore, the share capital will move from 30 to 100 million.

You can not register a travel agency as a Business Name in Nigeria

Again, CAMA 2020 now makes it possible for 1 person (lone director and shareholder) to form and register a company with CAC in Nigeria.

However, some industry license and permits in Nigeria requires otherwise, so it is always advised to seek industry regulation requirements before proceeding with CAC to ensure that the registration meets the industry requirements.

Requirements For CAC Registration Of Travel Agency

To do CAC registration for a travel agency in Nigeria, you need the following

• 2 to 3 Proposed company names (in case the desired name is not available)
• Operating company address
• Clearly written out company objectives (Otherwise called objects of memorandum)
• Article of association (which can be adopted freely from CAC by default)
• Director and Shareholder Information such as name, DOB, nationality, occupation,
• Means of Identification of Directors and shareholders
• Contact address of directors and shareholders
• A profession or agent who will be engaged to handle the registration

Practical Guide To CAC Registration For Travel Agency

• Visit the company registration portal
• Login with your accredited agent details (Desist from using public account for registration of this magnitude)
• Proceed and conduct name availability check
• Reserve the approved name by paying the reservation fee
• Start the registration by filling all company information
• Provide a witness and adopt articles of association
• Clearly type out the nature or objects of business
• Fill the director, shareholder information
• Complete statement of compliance
• Upload all relevant IDs of the parties involved together with their signatures
• Make CAC payment and stamp duty fees
• Submit the application and wait for approval
• Once approved, obtain your CAC certificate

The duration is 10 to 15 working days

Cost To Register a Travel Agency in Nigeria with CAC

The cost of registration will be broken down into

• CAC statutory fee
• Stamp Duty fee
• Professional fee

Overall, To register a travels and tours company with CAC with a share capital of 30 million shares will cost around ₦700,000 to ₦1,000,000 depending on the agent involved in the process and others follow documents to process

Duration To Register A Travel and Tours Company With CAC

The duration for a travel agency company should take about 10 to 15 working days if the agent knows what he is doing and the portal is also stable.

Ready To Register Your Travels and Tours Company?

Employ the services of Legacy Benjamin Consult today. We handle the process from beginning to end. Send us a WhatsApp DM @ 08066108299

Licenses and Permits Required After CAC Registration

Having secured CAC registration, for your company to thrive well and stay compliant with government regulations, you should secure the following documents

• TIN Registration with Nigerian revenue service or Joint Revenue Board
• TaxPromax registration with Rev360
• Obtain a Tax clearance certificate
• BPP, PENCOM, ITF And NSITF registration (in most cases, if the company has large staff based and also wants to contract with the government)
• Obtain EFCC SCUML certificate
• Membership of registration with Travel Industry Associations
• Registration with National Association of Nigerian Travel Agencies (NANTA)
• Registration with Federation of Tourism Associations of Nigeria (FTAN)

Common CAC Registration Mistakes To Avoid

• Employing cheap services:  Some agent somewhere who knows no jack about CAC registration is promising you that he can do the registration for lesser fee, and you went ahead and paid because you don’t want to spend money
• Choosing the wrong business structure: Ensure that private limited liability company is the company type, and it is registered with 30 million shares
• Using Restricted words: Some words require CAC consent. Use the words that are acceptable
• Misleading Business Objects: Including other company objects that falls in a different share capital jurisdiction will result to a query
• Not registering for taxes: Because you don’t like to pay tax to Tinubu and his tax administration