A Public Limited Company, while suitable for well-established businesses, also offers significant benefits to budding entrepreneurs. With increasing business opportunities and a rising per capita GDP, the Federal Republic of Nigeria has proven to be one of the best places for an up-and-coming entrepreneur. If you are someone with a significant amount of funding and are willing to invest in something that will brighten the future of your company, then a Public Limited Company in Nigeria is the choice for you.
What is a Public Limited Company?
A Public Limited Company differs from a Private Limited Company because it can sell its shares to the public via a stock exchange. It is required to have a minimum share capital of ₦500,000. The Corporate Affairs Commission (CAC) of Nigeria mandates that at least two individuals must be involved in registering a public limited company.
There is no restriction on the maximum number of shareholders in a PLC. In a PLC, shareholders are only liable for the amount they have invested in the company. The cost of running a PLC is higher than that of a private limited company. Therefore, this business structure is more suitable for larger companies with substantial financial resources.
Features of a Public Limited Company in Nigeria
- The name of the company must end with the words “Public Limited Company” or its abbreviation “PLC.”
- There are no restrictions on the transfer of shares and debentures of the company to the general public.
- If the company wants to be listed on the Nigerian Stock Exchange, then the Articles of Association of the company must be in accordance with the Nigerian Stock Exchange.
- There is no limit to the maximum number of members who can join a PLC.
- People with relevant professional certifications or experience in similar industries can be appointed as company secretaries.
- If a person is over 70 years of age and meets certain statutory conditions, they may be appointed as a director of the company.
- A Public Limited Company must hold a statutory meeting within 6 months of its establishment.
What are The Steps for Public Limited Company Registration in Nigeria?
The process of registering a Public Limited Company in Nigeria involves the following steps:
Step 1: Select multiple names for your company, making a note that the chosen names aptly represent your business activities. Having numerous names shortlisted will help you in case the CAC does not select your first preferred name.
Step 2: Now, you will have to log on to the CAC portal and search for the available names.
Step 3: If the name is available, you have to reserve it by paying reservation fees, after which the COC will send a notice of approval.
Step 4: Next, you need to complete the pre-registration form (CAC 1.1) on the portal.
Step 5: You need to pay the filing and stamp duty fees.
Step 6: You will need to prepare and scan all the documents and then upload them to the CAC portal.
Step 7: You will now need to submit the original copies of the scanned documents to the nearest CAC office.
Documents Required for Establishing a PLC in Nigeria
According to the Corporate Affairs Commission, the regulating authority for the establishment and management of companies in Nigeria, you must keep certain documents for the establishment of your company. These documents are:
- Prepare individual documents with each shareholder's name, residential address, phone number, email ID, and shareholding percentage.
- Prepare a document with the company secretary’s name, address, phone number, and email ID.
- A document containing the names, addresses, phone numbers, and email IDs of the directors.
- The proposed company address.
- The proposed share capital of the company (minimum ₦500,000).
- The identification proofs of the directors, shareholders, and company secretary (international passport, permanent voter card, national ID card, or driver’s license).
- Objects of the Company, i.e., the business the Company proposes to operate.
- Memorandum and Articles of Association.
Navigating the process of forming a Public Limited Company in Nigeria can be complex. However, to ensure a smooth and successful setup, it is advisable to seek guidance from a business consultancy firm. Their expertise and practical knowledge can provide the support needed to make informed decisions about your company's future.
At Business Setup Worldwide, we specialize in assisting with Public Limited Company registration in Nigeria. Our experienced advisors offer professional and practical advice, along with guidance, to help shape the future of your company. If you have any questions about our wide range of services, feel free to contact us. We’d be delighted to assist you.
