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.
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