What are your objects?

The objects define the scope of the entity’s activities and the purposes for which the share capital of the company will be utilized. It is essential that the objects are clearly defined from the incorporation of the company. The objects also go a long way in determining the minimum share capital required for the company to operate.

The CAC prescribes benchmark share capital for different types of companies. For example a company involved in consultancy services needs to have a share capital of at least 2million as opposed to the normal 1million share capital. Aviation companies are fixed at 500 million and Commercial banks with International Authorization at 50billion.

Lastly, there are other regulatory requirements that your company may need because of its objects. For example, SCUML licence for audit, accounting and law firms etc. and NAFDAC for pharmaceutical companies. Some also demand professional qualifications as a requirement.

Don’t choose your objects at random. Put some thought to it.

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