CAC sets 100 million naira paid-up capital for foreign invested companies

CAC sets 100 million naira paid-up capital for foreign invested companies: The Corporate Affairs Commission (CAC) has begun implementing new requirements mandating a minimum paid-up capital of N100 million for foreign companies. This amount represents a staggering 900% increase over the previous provision.

According to CAC, this increase is in line with the Revised Handbook on Foreigner Quota Management (2022). According to a flyer posted on the homepage on December 5th.

Further, existing foreign-invested companies with paid-up capital of less than N100 million are directed to comply with this updated requirement within six months from the date of notification. Failure to comply may result in compulsory liquidation proceedings being commenced under section 571(e) of the Companies and Allied Matters Act 2020.

According to law firm Aluko & Oyebode, it is important to note that businesses that hold a valid operating license under the old guidelines will not be affected by the implementation of the new regulations.

However, companies that were registered with the previous minimum capital but have not yet obtained a business license will need to increase their capital to adapt to the updated regime.