LegalBizPro - CAC Business Guides

Ask around Nigerian business circles and you'll hear the ₦100 million rule quoted like settled law: every foreign-owned company must have ₦100 million in capital, full stop. The reality offers a different view, and understanding where this number actually comes from changes how you should treat it. Myth 1: "It is a CAMA Law" It is not. The Companies and Allied Matters Act (CAMA) 2020, the law CAC administers, sets minimum issued share capital at ₦100,000 for private companies generally. This is nothing close to ₦100 million, and no special CAMA provision singles out foreign-owned companies at that figure. The ₦100 million actually comes from the Federal Ministry of Interior's Revised Handbook on Expatriate Quota Administration (2022), which set ₦100 million in paid-up capital as a condition for granting a Business Permit to a foreign-owned or joint-venture company. It is an immigration-linked requirement, not a company-law one. Myth 2: "CAC Enforces this Uniform...

When managing an enterprise in Nigeria, understanding corporate compliance is an essential requirement. Many entrepreneurs assume that when their business stops operating it automatically puts an end to their legal obligations with the Corporate Affairs Commission (CAC).  Without knowing what to do, things can get confusing and with compliance, you must get up-to-date on all sides, whether the business is delisted or ceases to exist .  This post examines what they mean and the situations where they apply.  What Is the Cessation of Business? A cessation of business is an intentional or voluntary legal process initiated by the business owners, partners, or proprietors. The entrepreneur decides to close down their operations permanently, which could be because of various reasons, such as retirement, restructuring, or market shifts. Whatever the case, they must formally notify the regulator. To complete a cessation of business with CAC, the owners must submit a formal Notice ...

Do you have a company or business you no longer operate and just lying dormant? Leaving it that way can present many challenges.  Closing a business in Nigeria is not as simple as shutting your shop or taking your website offline. Under Nigerian law, a registered business name or company continues to exist and continues to attract compliance obligations. This goes on until it is formally deregistered with the Corporate Affairs Commission (CAC). Understanding cessation of business under CAC rules is essential for any entrepreneur, director, or business owner looking to exit cleanly, avoid penalties, and protect themselves from future liability. This guide explains what cessation of business means under Nigerian company law, the legal framework, and practical procedures to close a business or company the right way.  What Is Cessation of Business Under Nigerian Law? Cessation of business refers to the point at which a registered entity, which could be a business name, a limited ...

Many business owners in Nigeria believe a quiet or dormant company is free to operate and owes nothing to the government. Under the Companies and Allied Matters Act (CAMA), dormancy does not exempt a business from annual filing requirements . Failing to file your annual returns on time automatically triggers late filing penalties. These penalties accumulate for every defaulted year, accruing on the registered business itself and, for Limited Liability Companies, on the directors personally. This article provided a clear, transparent breakdown of official CAC base filing fees and statutory late penalties. It also explains how to calculate what your inactive company actually owes. Official CAC Annual Returns Fee vs. Penalty Schedule CAC charges a fixed base fee for timely filings. Once the filing deadline passes, a flat late penalty is added for each defaulting year. Entity Type Statutory Filing Deadline Base Filing Fee (Yearly) Late Penalty Fee (Yearly) Total Debt Owed to CAC (Yearly) B...