Corporate Affairs Commission Share Capital Requirements for Company Registration

Quick answer: Corporate Affairs Commission Share Capital Requirements for Company Registration is a public legal-education guide. The correct legal step may depend on the facts, documents, location, timing, and current law, so readers should seek tailored legal advice before acting.

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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

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