On December 5, 2023, the Corporate Affairs Commission (CAC) issued a Public Notice informing the public about its commencement of implementing a minimum paid-up capital requirement of N100,000,000 for companies with foreign equity participation.
Issued in March 2023, the Federal Ministry of Interior’s revised Handbook on Expatriate Quota Administration (2022), stipulated the precondition of N100,000,000 in share capital for companies with foreign participation to acquire Business Permits and Establishment Grant/Expatriate Quota in Nigeria.
After a period of uncertainty surrounding whether incorporation requirements for companies with foreign equity participation would change, the CAC has now synchronized its minimum paid-up capital requirement for such companies with the provisions of the Revised Handbook on Expatriate Quota Administration.
Furthermore, the CAC mandates existing companies with foreign participation, possessing less than N100,000,000 in paid-up capital, to meet the new capital requirement within 6 months from the date of the Notice (5 December 2023).
Failure to comply will result in the CAC initiating compulsory winding-up proceedings for companies still in default of the minimum paid-up capital requirement after the 6-month grace period.
For more enquiries about how this new requirement would impact your business in Nigeria, or to seek professional support, please do not hesitate to send us an email via clients@vi-m.com.
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