Increase In Issued Share Capital To 2M By Allotment Of New Shares

NGN 20,000.0

7 days

Corporate Returns

Description

Information about the compliance service

The Corporate Affairs Commission (CAC) has implemented a simplified process for increasing issued share capital in Nigeria. Companies can now increase their issued share capital by passing a resolution that approves the allotment of new shares to specified individuals.

Requirements

Info and documents needed for this service

  1. A copy of duly signed resolution authorizing the issued share capital increase.
  2. Payment of Stamp Duties on the amount of increase.
  3. Valid photo identification for individual share allottees.
  4. Evidence of registration for company/body corporate allottees.
  5. Resolution from the allottee company/body corporate approving share acquisition.

Process

Steps involved in this compliance service

  1. Pass board resolution.
  2. Prepare notice of increase signed by two directors or company secretary.
  3. Issue notice of increase in share capital in the prescribed form.
  4. Submit a statement of increase in the prescribed form.
  5. Pay Stamp Duty to the Federal Board of Inland Revenue.
  6. Pay fees.

FAQs

Frequently asked questions about this service

  1. What is a share capital?
A share capital is the total amount invested in a company by its members in exchange for ownership of shares in the company.
   2. What is the minimum share capital requirement of a company?
Generally, the minimum issued share capital required of a private company is ₦100,000 (One Hundred Thousand Naira), while a public company requires ₦2,000,000 (Two Million Naira). Designated companies in certain sectors might require a different minimum share capital as prescribed by the CAC or other governing body.