How to register a company without shares?
The stipulation for registration of a company is that it must be registered with shares. The Corporate affairs Commission (CAC) is strict in its adherence to this rule. A private company limited by shares must allot at least 25 percent of its shares before it can be registered.
However, there is a type of company where the subscribers can register the company without shares. This type is called a company limited by guarantee. In a company limited by guarantee, the subscribes are only liable for the amount in which they undertake to.
A company limited by guarantee is usually incorporated to promote a certain objective or for the advancement of art, culture, science etc. It is not for profit but can enter into commerce but any money gotten must be for the Advancement of its objectives.
The following is the procedure for the registration of a company limited by guarantee;
- Reserve the company’s name with the commission
- Download and Fill in the CAC 1.1 from the CAC website.
- Download and Fill in the Memorandum and Articles of Association Form from the Corporate Affairs Commission site.
- Print and sign the CAC 1.1 Form and Memorandum and Articles of Association.
- Upload the documents on the site.
The document to be uploaded includes;
- Availability printout
- CAC 1.1 form
- Memorandum and articles of association
- Identification of the subscribers
- Payment printout
- Consent letter from the Attorney General
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