(Minimum paid up share capital for companies with foreign participation)
Following the public notice issued on December 5, 2023, by the Corporate Affairs Commission (the “CAC”) announcing the implementation of the N100,000,000.00 (One Hundred Million Naira) minimum paid-up capital requirement for companies with foreign participation (the “Notice”). This requirement is driven by the minimum paid-up share capital prescription in the Revised Handbook Expatriate Quota Administration, 2022. A company with foreign participation refers to a company that has any of its shares held by non-Nigerians.
According to the Notice, any application for incorporation of a prospective company with foreign participation will not be processed unless the promoters can demonstrate that the prospective company meets the minimum paid-up capital of N100,000,000.00 (One Hundred Million Naira). Additionally, existing companies with foreign participation possessing less than N100,000,000.00 (One Hundred Million Naira) paid-up capital are required to comply with this new requirement within six (6) months from the date of the Notice.
Non-compliance will result in the initiation of compulsory winding-up proceedings by the CAC under the Companies and Allied Matters Act, 2020 (as amended).
Radix Capital Partners Limited (“Radix”) welcomes companies in this category for capital raising exercise, enabling them to meet the minimum paid-up capital.
For further clarifications, please get in touch with our advisory team at 08101161087 or via email: email@example.com; firstname.lastname@example.org