The Corporate Affairs Commission (hereinafter referred to as “the Commission”) recently issued a notice dated 5th of December, 2023 to the general public on the increase of minimum share capital in companies with foreign participation. Please note that, this increase is in line with compliance with the Ministry of Interior’s revised Handbook on Expatriate Quota Administration (2022).
The commission has thus reviewed and commenced the increase of the requirements of minimum share capital for companies with foreign participation from 10 Million Naira (Ten Million Naira) to 100 Million Naira (One Hundred Million Naira) minimum share capital as directed by the Ministry of Interior.
Note that in compliance with this new development, all new companies with foreign participation are expected to have 100 Million Naira minimum share capital before they can be eligible for registration with the commission. On the other hand all existing companies with foreign participation have been directed by the commission to increase their minimum share capital “not later than six months” from the date of the notice (5th December, 2023).
Kindly note that, the Commission shall commence proceedings for the compulsory winding-up of the companies under Section 571 (e) of the Companies and Allied Matters Act 2020 against any company that fails to comply with this directive.
We urge all companies with Foreign participation to ensure that their companies take the necessary steps and comply with the Commission’s directive.
Kindly reach out to us for further questions and assistance regarding registration, compliance and filing of documents with the Corporate Affairs Commission.
AOC Solicitors