Sunday, 16 December 2018

MINIMUM SHARE CAPITAL REQUIREMENTS (PART 1)

User Rating: 0 / 5

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive
 

The Share Capital of a company is the money invested in the company by its shareholders. It is part of the finances of a company that enables it to run its business and carry out operating activities.

There is no fixed amount requirement for a company share capital. However, the Companies and Allied Matters Act provides a prescribed minimum share capital of N10,000 (Ten Thousand Naira) for private companies and N500,000 (Five Hundred Thousand Naira) for public companies i.e. companies whose shares are traded on the stock exchange.

For some companies depending on the industry in which those companies fall, a higher minimum share capital is prescribed by industry regulators such as the Stock Exchange Commission, Corporate Affairs Commission, Central Bank of Nigeria, Nigerian Civil Aviation Authority etc.

Fortunately, we have prepared a comprehensive list that covers different company types in different industries and the minimum share capital required.

The list also provides for the certificate(s) requirement of at least one of the directors in the different companies before the incorporation of such company can be done.

S/N Types Of Company Minimum Share Capital Justification Certificate Required
1.

Issuing House

N150M Securities and Exchange Commission guidelines on minimum share capital for market operators NIL
2 Broker/Dealer N70M Same as above Same as above
3  

Trustees

N40M Same as above Same as above
4 Fund/Portfolio Manager/Risk Manager N20M Same as above Same as above
5 Corporate Investment Adviser N5M Same as above Same as above
6  

Individual Investment Adviser

N500,000 Same as above Same as above
7  

Registrars

N50M Same as above Same as above
8  

Rating Agency

N20M Same as above Same as above
9  

Corporate Sub-Brokers

N5M Same as above Same as above
10  

Individual Sub-Broker

N500,000 Same as above Same as above
11  

Underwriter

N100M Same as above Same as above
12  

Market Maker

N2B Same as above Same as above
13

Consultant Partnership

N2M Same as above Same as above
14  

Consultant Corporate

N5M Same as above Same as above
15  

Venture Capital Manager

N20M Same as above Same as above
16  

Commodity Broker

N40M Same as above Same as above
17  

Capital Trade Point

N20M Same as above Same as above
18  

Stock Commodity Exchange

N500M Same as above Same as above
19 Clearing And Settlement Agency N500M Same as above Same as above
20  

Life Insurance

N2B Guideline on Insurance Sector Reform and Consolidation Made Pursuant to S. 9 (4) Insurance Act 2003  

Same as above

 

21

 

General Insurance Business

 

N3B

 

Same as above

 

Same as above

 

22

 

Re-Insurance Business

 

N10B

 

Same as above

 

Same as above

 

23

 

Insurance Broker

 

N5M

 

Same as above

 

Same as above

 

24

 

Risk Manager /insurance

 

N20M

 

Same as above

 

Same as above

In part 2 of this series, we will list other companies and their minimum share capital requirements.

Newsletter

Subscribe to our Newsletter.

AFC Legal Consult
5, Jubilee (CMD) Road,
Magodo, Lagos.

Email:

contact@naijalegaltalkng.com

Phone:

07066565942