REVIEW OF CORPORATE AFFAIRS COMMISSION SHARE CAPITAL FOR COMPANY REGISTRATION IN NIGERIA
Share capital threshold must be met by individuals wishing to form a company in particular Nigerian
REVIEW OF CORPORATE AFFAIRS COMMISSION SHARE CAPITAL FOR COMPANY REGISTRATION IN NIGERIA
A minimum share capital threshold must be met by individuals wishing to form a company in particular Nigerian industries and economic sectors in order for the firm to be registered and recognised as qualified to conduct business in those sectors. The essence of this requirement is to determine the viability of the company as these industries are usually capital-intensive ventures and highly regulated.
Below are a list of these various industries and their requisite share capital threshold before they can be registered with CAC.
TYPE OF COMPANY/ INDUSTRY MINIMUM SHARE CAPITAL (N)
1. FUND/PORTFOLIO MANAGERS 150 MILLION
2. BROKERS/DEALERS 300 MILLION
3. TRUSTEES 300 MILLION
4. INTER-DEALER BROKER (IDB) 50 MILLION
5. STOCKBROKERS 200 MILLION
6. STOCK DEALERS 100 MILLION
7. INDIVIDUAL INVESTMENT ADVISER 2 MILLION
8. MARKET MAKER 2 BILLION
9. ISSUING HOUSE 200 MILLION
10. CONSULTANT PARTNERSHIP 2 MILLION
11. CORPORATE INVESTMENT ADVISER ( REGISTRAR) 150 MILLION
12. UNDER WRITER 200 MILLION 13. COMMODITIES EXCHANGE 500 MILLION
14. CORPORATE INVESTMENT ADVISER 5 MILLION
15. CAPITAL TRADE POINT 20 MILLION
16. CONSULTANT INDIVIDUAL 500, 000
17. VENTURE CAPITAL MANAGER 20 MILLION
18. CORPORATE/SU BROKER 5 MILLION
19. PRIMARY MORTGAGE INSTITUTIONS 2 BILLION
20. FINANCE COMPANY 20 MILLION
21. CONSULTANT CORPORATE 5 MILLION
22. RATING AGENCY 150 MILLION
23. COMMODITIES BROKER 40 MILLION
24. MERCHANT BANKS 15 BILLION
25. COMMERCIAL BANK (REGIONAL AUTHORIZATION) 10 BILLION
26. COMMERCIAL BANKS (NATIONAL AUTHORIZATION 25 BILLION
27. COMMERCIAL BANKS (INTERNATIONAL AUTHORIZATION) 50 BILLION
28. MICRO FINANCE BANK (NATIONAL) 2 BILLION
29. MICRO FINANCE BANK (STATE & FCT) 100 MILLION
30. MICRO FINANCE BANK (UNIT) 20 MILLION
31. NON INTEREST BANKS (NATIONAL) 10 BILLION
32. NON INTEREST BANKS (REGIONAL) 5 BILLION
33. INSURANCE BROKERS 5 MILLION
34. LIFE MICROINSURANCE BUSINESS 150 MILLION
35. BUREAU DE CHANGE 35 MILLION
36. GENERAL MICROINSURANCE BUSINESS 200 MILLION
37. GENERAL TAKAFUL/FAMILY TAKAFUL 200 MILLION
38. GENERAL INSURANCE BUSINESS 3 BILLION
39. LIFE INSURANCE 2 BILLION
40. REINSURANCE BUSINESS 10 BILLION
41. PRIVATE SECURITY COMPANY/CONSULTANT 10 MILLION
42. AGENTS OF FOREIGN AIRLINES 1 MILLION
43. CLOSED PENSION FUND 500 MILLION
44. PENSION FUND ADMINISTRATORS 1 BILLION
45. PENSION FUND/ASSET CUSTODIANS 2 BILLION
46. LOTTERIES 5 MILLION
47. HEALTH MAINTENANCE ORGANISATIONS (HMOs) (STATE) 100 MILLION
48. HEALTH MAINTENANCE ORGANISATIONS (HMOs) (ZONAL) 200 MILLION
49. HEALTH MAINTENANCE ORGANISATIONS (HMOs) (NATIONAL) 400 MILLION
50. AERIAL AVIATION SERVICES 20 MILLION
51. AIR AMBULANCE/FUMIGATION/PRIVATE JET 20 MILLION
52. SPORT LOTTERY BUSINESSES 30 MILLION AND APPROVAL IN PRINCIPLE
53. AIR TRANSPORT (LOCAL) 500 MILLION
54. AIR TRANSPORT (REGIONAL) 1 BILLION
55. AIR TRANSPORT (INTERNATIONAL) 2 BILLION
56. FREIGHT FORWARDING 5 MILLION
57. AVIATION (AIR TRANSPORT TRAINING INSTITUTIONS) 2 MILLION
58. AVIATION (Ground Handling Services) 500 MILLION
59. SHIPPING COMPANY/AGENT 25 MILLION
60. CABOTAGE TRADE 25 MILLION
61. AGRICULTURAL SEEDS, PRODUCTIONS, PROCESSING AND MARKETING 10 MILLION
Furthermore, where a foreigner is to participate in a company, either as a shareholder and/or director, the Federal Ministry of Interior mandates such company to have a minimum share capital of N10,000,000 (Ten Million Naira) to make such company eligible to apply for and obtain expatriate quota, as well as business permit. Consequently, the CAC requires companies with foreign participation to have at least N10,000,000 (Ten Million Naira) share capital before such a company can be registered.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080