Your company must be in existence before you can increase its share capital.
For a new company, all you need is to to do is to apply for the number of shares you want in your new application.
The share capital of a company may be increased by issuing new shares (new issue) or by the company’s own funds being transferred from unrestricted equity to share capital (bonus issue).
For old companies, you will Increase your Share Capital as follows:
– Notice of increase in share capital in the prescribed form
– Statement of increase in the prescribed form
– Payment of Stamp Duty to Federal Board of Inland Revenue
– Notice of increase to be signed by the company’s two directors or the secretary
– Payment of filing fees
– Evidence of compliance with S.636 where applicable
More on how to register your business or company in Nigeria, click HERE
There are several reasons why company increases her share capital. This is not the subject of this blog.
But the decision regarding share capital increase is made by the General assembly. As a minimum, a resolution to increase the company’s share capital must always state the amount by which the share capital is to be increased, or specify upper and lower limits for such an increase, the nominal value of the shares, the amount to be paid for each share and who is entitled to subscribe for the new shares.
In addition, it must specify, among others information about the subscription deadline, settlement, dividend right and expenses.