HOW TO REGISTER GROUP OF COMPANIES IN NIGERIA
A Group of companies according to CAMA comprises three or more associated companies with common shareholders or ownership. These companies become the shareholders of the distinct “Group” company.
STEPS FOR REGISTERING GROUP OF COMPANIES IN NIGERIA
A group of companies are types of business that can be established to achieve specific purposes.The law regulating the formation of a company in Nigeria is the Companies and Allied Matters Act (CAMA or the Act). A Group of companies according to CAMA comprises three or more associated companies with common shareholders or ownership. These companies become the shareholders of the distinct “Group” company. Unless the required permission of the Registrar General of the Corporate Affairs Commission (CAC) is requested and obtained, the law prohibits the use of the word “Group” in the name of a company.
Thus, for consent to be granted, the following requirements must be met:
Formal application to the Registrar General for consent for the use of the word“Group”with payment of a non-refundable application fee.
Evidence of a minimum of three (3) or more associated companies to form the Group Company, which will be the distinct entity.
Evidence of similar names of associate companies with common shareholdings of the associate companies. It should be noted that three friends can register a group together provided that each subsidiary is partially owned by all.
There must be a resolution of the associate companies expressing consent to the “Group”arrangement.
The updated annual returns of all associate companies must be provided.
Evidence of Company secretary of associate companies.
Statement by the majority of the directors of the proposed Group Company that the share capital shall not be less than the highest share capital amongst the associate companies.Note, the share capital of the proposed group of companies cannot be less than N5m.
Evidence of compliance with S.553 CAMA where applicable. This applies to banks,insurance firms, deposit, provident or benefit societies.
Once the Consent is obtained, the Applicant can go ahead to register a new company with the same procedure for the registration of a new company.
Finally, when registering a group of companies all the requirements must be complied with.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080