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CAC issues notice to ignore N100m foreign partner paid-up capital after backlash

Corporate Affairs Commission has issued a notice for members of the public to ignore the previous notice on the increase in “Minimum Paid-Up Capital for Companies after backlash from the public. 

The commission in a tweet on its official X account announced that it will amend and issue a new notice in due course. 

The tweet reads: 

“Our dear esteemed customers and the general public are hereby advised to disregard our earlier issued notice titled “Minimum Paid-Up Capital for Companies with Foreign Participation”

“Our initial notice concerning paid-up capital rather than issued capital was based on the Corporate Affairs Commission on the Federal Ministry of Interior Handbook on Expatriate Quota Administration 2022 Revised Edition, as indicated on page 5.”

“We shall issue an amended notice with regards to the above in due course.

Signed: Management

Recall that the CAC issued a flyer dated December 5, signed by management  with a notice that reads:

“The Corporate Affairs Commission (CAC) has commenced the implementation of the requirement of N100 million minimum paid-up capital for companies with foreign participation.”

The increase, according to CAC, is in line with the Revised Handbook on Expatriate Quota Administration (2022).

The CAC also stated that any application for incorporation of a company having foreign participation would not be processed unless it complies with the above requirement.

It also directed that existing companies with foreign participation that have less than N100 million paid-up capital ensure compliance with the above requirement not later than six months from the date of this notice.

Some of the backlash the commission got indicated that the initial notice was outrageous and not business friendly.

Kaju Aja alarmingly said “THIS IS WRONG; this is a terrible idea.

“You are essentially saying I must incorporate with N100m, PAID UP before I can get a foreign partner

“The focus on PAID UP capital shows they are targeting IGR, not FDI. This is so short-sighted

“Who is making these rules? Is the coordinating minister of the economy aware of this?”

Amb. Dr. Stephen O. Enike-Matthew also noted, “…The CAC is now more focused on revenue generation than on actual economic development by creating a more level playing field for many companies to come into the mainstream of business in the Nigerian economy. “

https://x.com/sir_enike/status/1732901317310353509?s=20

Ifeoluwa Akinola

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