By Funmilayo Olagunju
There is a prescribed minimum share capital for certain industries in Nigeria. For a Company to be successfully registered in such industry, it must meet up with the prescribed minimum share capital among other regulatory compliance.
The justification for a minimum share capital could be traced to either a Statute or Regulations of the relevant Regulatory sector.
By a way of example, the threshold for Private security Company/Consultant is N10 Million as specified in the Guideline on Requirements for registration of Private Guard Security Companies made pursuant to Nigerian Security and Civil Defence Corp Act No. 2 of 2003. That is a Minimum share Capital prescribed by a Statute.
Regulatory bodies such as the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Corporate Affairs Commission (CAC) and others have listed minimum share capitals for various market operators.
The minimum share capital for a Company seeking to register as Travel/Tour Agency is 30 Million Naira. That is a Minimum share capital prescribed by Regulation.
It is not enough to pick interest in a particular line of business. It is expedient to promptly consult with Experts to be guided in respect to the regulatory compliance of that industry and the necessary legal structure required to be put in place. Minimum share capital is a preliminary factor each Company promoter should consider.
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”
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