CAC SHARE CAPITAL THRESHOLD FOR COMPANY REGISTRATION ON NIGERIA
Persons interested in registering a company in certain industries and economic sectors in Nigeria are required by statutes and other regulations to have a minimum share capital threshold before such a company can be registered and deemed eligible to carry on business in those industries. 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 is a list of these various industries and their requisite share capital threshold before they can be registered with CAC.
| S/N | 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)Â (STATE) | 100 MILLION |
| 48. | HEALTH MAINTENANCE ORGANISATIONS (HMOs)Â (ZONAL) | 200 MILLION |
| 49. | HEALTH MAINTENANCE ORGANISATIONS (HMOs)Â (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.
Conclusively, certain industries mandates proposed participants to obtain an Approval-in-Principle from industry regulators before they can register a company in that industry with CAC. Such industries include banking, and payment service provides among others.
By Corporate & Commercial Law Team at Resolution Law Firm
Email: info@resolutionlawng.com
