If you operate as a sole proprietor in Nigeria, registering for tax is not just a legal requirement — it’s an essential step to keep your business compliant and avoid unnecessary penalties. At Faturoti Taiwo & Co., a leading accounting firm in Lagos, we help small business owners navigate the process with ease.
In this guide, we’ll explain why tax registration matters, the steps to register, and how to stay compliant.
Why Sole Proprietors Need to Register for Tax in Nigeria
As a sole proprietor, you’re personally responsible for your business’s tax obligations. The Federal Inland Revenue Service (FIRS) requires you to register so you can:
- Obtain a Tax Identification Number (TIN)
- Pay Personal Income Tax (PIT)
- Remit Value Added Tax (VAT) (if applicable)
- Comply with state and federal tax laws
👉 Learn more about TIN registration from FIRS
Step-by-Step Guide to Register for Tax as a Sole Proprietor
1. Register Your Business Name
Before you can register for tax, ensure your business is registered with the Corporate Affairs Commission (CAC).
🔗 Register your business name online with CAC
2. Apply for a Tax Identification Number (TIN)
The TIN is your unique tax identity in Nigeria. To get it:
- Visit the nearest FIRS tax office or apply online via the Joint Tax Board TIN Portal
- Provide your CAC registration documents, valid ID, and utility bill
- Complete the TIN application form and submit
3. Register for Personal Income Tax
As a sole proprietor, you’ll pay Personal Income Tax based on your business profits. This is usually handled through the State Internal Revenue Service where your business is located.
For example, in Lagos, visit the Lagos State Internal Revenue Service (LIRS) website: https://lirs.gov.ng/
4. Register for VAT (If Applicable)
If your annual turnover exceeds ₦25 million, you must register for VAT with the FIRS. This allows you to:
- Charge VAT on goods and services
- Remit VAT monthly to the FIRS
🔗 VAT registration information from FIRS
5. Keep Proper Financial Records
Tax compliance is not just about registration — you must also:
- Keep accurate sales and expense records
- File your annual returns
- Pay your taxes on time to avoid penalties
Common Mistakes Sole Proprietors Make
- Delaying TIN registration
- Mixing personal and business finances
- Ignoring VAT obligations when the threshold is met
- Not filing returns on time
How Faturoti Taiwo & Co. Can Help
Our team offers:
- End-to-end tax registration support
- Business advisory for sole proprietors
- Bookkeeping and tax filing services
- Compliance monitoring to avoid penalties
👉 Contact Faturoti Taiwo & Co. today to register for tax quickly and correctly.
Registering for tax as a sole proprietor in Nigeria is straightforward when you know the process — but mistakes can cost you time and money. With Faturoti Taiwo & Co., you get expert guidance to stay compliant, reduce stress, and focus on growing your business.