The Corporate Affairs Commission (CAC) has commenced the implementation of the requirement of N100 million minimum paid-up capital for companies with foreign participation.
The value is a 900 per cent increase compared to what was obtained before now.
The increase, according to CAC, is in line with the Revised Handbook on Expatriate Quota Administration (2022).
In a flier posted on X platform dated December 5, signed by management, CAC stated that any application for incorporation of a company having foreign participation would not be processed unless it complies with the above requirement.
It directed that existing companies with foreign participation that have less than N100 million paid-up capital ensure compliance with the above requirement not later than six months from the date of this notice.
“Commission shall commence proceedings for the compulsory winding-up of the Companies under Section 571 (e) of the Companies and Allied Matters Act 2020,” it said.
Since 2004, the minimum issued share capital requirement for such companies was N10 million.
According to Aluko &Oyebode, the guidelines in the handbook do not have a retrospective effect; hence companies with valid subsisting business permits under the old rules are not caught by the new rule.
It stated that companies that were registered with the previous minimum share capital, but are yet to obtain business permits may need to increase their share capital to align with the new regime.