You do not always need to register a business to run a shortlet in Nigeria. But if you trade under a name that is not your own, that business name should be registered with the Corporate Affairs Commission (CAC). You also need the right to let the property, and records for tax.
This guide sets out what we could confirm, with sources and dates, and what we could not. It is general information, not legal or tax advice. Laws and fees change, so check with the CAC, your state and a lawyer before you act.
Do you need to register?
Ask yourself four questions:
- Will you trade under a name? A brand name for your flats that is not your own full name is a business name. Under the Companies and Allied Matters Act 2020 (CAMA), business names are registered with the CAC.
- Will you run more than one home, or hire staff? A registered business keeps contracts, wages and accounts cleaner.
- Do you want a business bank account? Banks usually ask for registration documents before opening one in a business name.
- Do you want to limit your personal risk?A limited company keeps the business’s debts apart from your own.
If you let out one flat now and then, in your own name, and are paid into your own account, you may not need to register a business. You still need permission to let the property, and you still owe any tax due on the income.
Managing homes for other owners is different again. You hold other people’s money and sign agreements for them, so registering, and a written agreement with each owner, matter more. See how to become a shortlet agent and starting a shortlet without owning property.
New to hosting? Read how to start a shortlet business in Nigeria first. It covers the steps before registration.
Business name or company
The CAC registers both. As at 30 September 2026, its website (cac.gov.ng) lists business name registration and company registration as separate services, and both are done online through its portal.
| Business name | Private company (Ltd) | |
|---|---|---|
| What it is | A registered trading name for you, or you and partners | A separate legal person, owned by its shareholders |
| Your personal risk | You are personally responsible for the business’s debts | Your risk is generally limited to what you put in |
| Paperwork | Lighter | More: directors, shares and yearly filings |
| Can one person do it? | Yes | Yes. CAMA 2020 lets one person form a private company |
| Good for | One or two homes, or testing the idea | Several homes, partners, investors or staff |
Both carry yearly duties to the CAC, such as filing an annual return. Ask the CAC or your lawyer what applies to you.
We do not quote registration fees or times. They change, and the CAC publishes its own. Register through the CAC’s official website, not an unofficial copy. If you use an agent, ask them to show you the official fee and their own fee separately.
Choosing a name. Before you register, think about the name guests will see:
- Keep it short, easy to spell and easy to say on the phone.
- Avoid a place name that ties you to one area if you may add homes elsewhere.
- Check that no one else uses it. The CAC checks names for availability when you apply.
- Check that a matching web address and social media handles are free.
Business name or company, open a separate bank account for the shortlet. It makes records and tax far simpler. Our guide to shortlet bookkeeping shows what to record.
State and estate rules
Registering with the CAC is only part of the picture. Before you take guests, check three layers of rules.
1. Your right to let the property. If you rent the flat, read your tenancy agreement. It may forbid subletting without the landlord’s written consent. If you own it, check your title documents and any lease terms. Our guide can I turn my flat into a shortlet? walks you through this step.
2. Your estate or building.Some estates and residents’ associations restrict shortlets, limit visitors, or set security rules for guests. Ask the estate office or the association for its rules in writing before you list. We do not name estates here, because their rules change.
3. Your state. States set their own rules for hotels and similar places to stay. In Lagos, the Hotel Occupancy and Restaurant Consumption Law of 2009 places a consumption tax on hotel-type stays. The Lagos State Internal Revenue Service (LIRS) collects it. Legal commentators say it reaches shortlet apartments.
As at 30 September 2026, we could not find an official LIRS page on how this law applies to a single shortlet flat. Nor could we confirm whether a separate licence is needed. Ask LIRS or a tax adviser directly, and keep their answer in writing.
For Abuja, we could not find an official Federal Capital Territory Administration page setting out a registration rule for shortlet hosts, as at the same date. Ask the relevant FCT tourism or hotels office, and the FCT’s internal revenue service. In other states, ask the state ministry that handles tourism, and the state internal revenue service.
Tax records
Registered or not, shortlet income can be taxed. Keep records from your very first booking:
- every stay: the dates, the guest, the amount paid, refunds and fees;
- every cost, with a receipt or a photo of one;
- bank statements for the account the money goes into;
- your CAC documents, if you register.
Nigeria’s tax laws were overhauled recently. The Nigeria Tax Act 2025 was signed on 26 June 2025 and took effect on 1 January 2026. It replaced older laws, including the Personal Income Tax Act and the Companies Income Tax Act. The federal tax agency, formerly the Federal Inland Revenue Service, is now the Nigeria Revenue Service.
Ask a tax adviser how the new rules treat your shortlet income, and whether your business needs its own tax identification number (TIN). Our rental income tax guide explains the general ideas; check any rule or rate in it against the new laws. If you also plan your own booking website, legal registration for property websites covers data protection and more.
What we could not confirm (as at 30 September 2026)
- Current CAC registration fees and processing times.
- Whether Lagos needs a licence or registration for a single shortlet flat, and how its consumption tax applies to one.
- Whether the FCT or other states ask shortlet hosts to register.
- How the Nigeria Tax Act 2025 treats shortlet income in detail.
- Whether any national licence for shortlets exists. We found none.
We will update this guide when official sources confirm more. Until then, be careful with anyone who says registration is simple and the same everywhere.
On Cabans, you host through a business profile and take bookings online. You set your prices, calendar and booking rules. Guests pay securely online through Paystack, and they pay Paystack’s processing fee. Cabans charges hosts a 5% commission, and you are paid within 7 days after the guest’s stay, sooner when the guest approves the payment after their trip. See how to make your short let bookable online, or take shortlet bookings online.
Once your paperwork is in order, list your short let and reach guests looking for homes like yours. To see what they compare you with, browse shortlets across Nigeria or shortlets in Lagos.
Frequently asked questions
Do I need to register my shortlet business in Nigeria?
Not always. If you trade under a name that is not your own, the business name should be registered with the Corporate Affairs Commission (CAC). You may also need your landlord’s or estate’s permission, and you owe any tax due on the income. This is general information, not legal advice.
Should I register a business name or a company?
A business name is simpler and suits one or two homes. A private limited company takes more paperwork, but it keeps the business’s debts apart from your own and suits several homes, partners or investors. Ask a lawyer or accountant which fits your plans.
Can I register a shortlet business online?
Yes. As at 30 September 2026, the CAC offers business name and company registration online through its own portal. Use the official CAC website rather than an unofficial one.
Do I need my landlord’s permission to run a shortlet?
If you rent the flat, read your tenancy agreement. It may forbid subletting without the landlord’s written consent. Get that consent in writing before you take a guest.
Is there a shortlet licence in Lagos?
We could not confirm one from an official source as at 30 September 2026. Lagos has a consumption tax law for hotel-type stays, collected by the Lagos State Internal Revenue Service. Ask LIRS or a tax adviser how it applies to your flat.
Do I pay tax on shortlet income?
Shortlet income can be taxed. The Nigeria Tax Act 2025 took effect on 1 January 2026 and replaced the older income tax laws. Ask a tax adviser how the new rules treat your income. This is not tax advice.
How are shortlet hosts paid on Cabans?
Guests pay securely online through Paystack, and they pay Paystack’s processing fee, so it does not come out of your earnings. Cabans charges hosts a 5% commission. You are paid within 7 days after the guest’s stay, and sooner when the guest approves the payment after their trip.
Related guides
How to start a shortlet business · Can I turn my flat into a shortlet? · Shortlet bookkeeping · Shortlet insurance in Nigeria · Rental income tax in Nigeria
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