15/05/2026
How I carried out Business Name Upgrade to Limited (Small Company) on CAC
I am 90% sure that why you are reading this article is because you want to benefit from the New Tax Law in Nigeria, with Business Name Upgrade to Limited (Small Company) on CAC.
The New Tax Law in Nigeria states the following, but not limited to:
Zero CIT for Small Companies: Small companies (turnover not more than ₦100 million and total fixed assets not more than ₦250 million) pay 0% tax.
Development Levy – Exempt: Small companies are exempt from 4% development levy.
Withholding Tax – Exempt: Small companies, manufacturers and agricultural businesses are exempt from withholding tax deduction on their income. Small companies are exempt from deduction on their payments to suppliers.
Abolition of Minimum Tax: The new regime eliminates the minimum tax on loss-making companies; companies are only taxed on actual profits.
Lower Taxes on Dividends: As a director, you can take income as a combination of salary and dividends, with dividends often taxed at a lower rate than personal income tax rates applied to sole traders.
Zero-Rated VAT: Small companies (≤ ₦100m turnover) are exempt from charging VAT. Also essential items like food, medical services, and education remain zero-rated, aiding companies in these sectors.
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https://cms.com.ng/how-i-carried-out-business-name-upgrade-to-limited-small-company-on-cac/
