Conversion of your Unlimited Company to A limited Liability Company in Nigeria
Conversion of business type from unlimited to a limited liability company has been possible in Nigeria by virtue of Sec 52 Companies and Allied Matters Act (2004). The possibility of this conversion does not come without compliance to set down guidelines and requirement as stated in the Act.
HOW TO CONVERT YOUR UNLIMITED COMPANY TO A LIMITED LIABILITY COMPANY
- Prepare a special resolution stating the decision of the board and members of the company to convert to a limited liability company signed by two directors.
- The resolution shall state the proposed share capital and shall also provide for the making of such changes as required on the Memorandum and Articles of Association.
- Application for re-registration signed by a Director and Company Secretary shall be submitted at the Commission
- Application shall be accompanied by the following documents
- Evidence of name search and reservation
- Duly stamped altered memorandum and articles of association to reflect the change.
- Updated annual returns filings or evidence of compliance to Annual Returns filings
- Updated section 553 of CAMA applicable to financial institutions
- Payment of required fees.
Note the following;
- An unlimited company shall not be re-registered as a public company nor a company limited by guarantee.
- A company cannot be re-registered as limited by share if it had previously been re-registered as unlimited from limited by share
- The notice of resolution for this must be filed within 15 days after the special resolution.
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