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What You should Know about Registering Group of Companies

Dear entrepreneur,

Having a  combination of different businesses is not what makes a group of companies.

Floating your business as a limited liability company gives you the right to have as many object clauses as you want.

However, in naming the company you can not just use the word group simply because you have several businesses under a single registration.

You need the consent of the registrar general of the Corporate Affairs Commission (CAC)  to use the word group in your company name.

Before you can be granted consent, you must show evidence of at least 3 registered limited liability company with common directors and shareholders

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After which you will now need to do a fourth company registration where all the existing companies are shareholders in the new company (group).

The decision to float a group must be approved by all the shareholders of the company.

These are just the basics, there are so many other factors to consider before floating your business as a group of companies.

And by the way floating a group of companies is only limited yo businesses that are registered as a limited liability company and not enterprise or business names.

You can’t have two limited companies and one business name, all the subsidiaries have to be a(n) LLC.

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by Barinaada Bema Alexander 

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