In today’s evolving business landscape, many entrepreneurs are taking their vision beyond a single brand. They want to create multiple companies under one umbrella — a structure known as a Group of Companies or Holding Company.

But before a business owner can legally operate a group of companies in Nigeria, there are important requirements, CAC rules, and structural steps to follow.
At Marbcorporate, we help founders navigate this process with clarity and confidence.

This guide will walk you through everything you must know before forming a Group or Holding Company in Nigeria.

What Exactly Is a Group of Companies?

A Group of Companies is a corporate structure where one main company (the holding company) controls or owns significant shares in several other companies (the subsidiaries).

It gives you:

A unified corporate identity
Better structure
Easier access to investors
Better tax and management planning
Stronger credibility

But you cannot start from the top. A Group of Companies must grow from individually registered companies.

Step 1: You Must First Register the Individual Companies

Before you can create a Group or Holding Company, CAC requires that each subsidiary company must be fully registered as a standalone business.

You need at least three (3) separate companies

These companies can be in related or complementary industries, but each must have:

Its own CAC registration
Its own directors
Its own share capital
Its own registered address
Its own objectives (even if similar)

This structure shows that the group is built on existing legal entities, not just an idea.

Step 2: You Must Be a Director in All Individual Companies

To form a Group of Companies, you (the founder) must appear as a director in each of the companies you’re bringing together.

This establishes:

Control: You have legal authority at subsidiary level
Connection: CAC can recognize the companies as related
Ownership: It confirms your eligibility to create a holding structure

Without this uniformity, CAC cannot approve a Group or Holding arrangement.

Step 3: Ensure Proper Share Capital Structure

This is one of the most important requirements.

. Each subsidiary company must have its own share capital

But for a Group of Companies:

. The Holding Company must have the HIGHEST share capital when compared to the subsidiaries.

For example:

Company A: ₦1,000,000
Company B: ₦1,500,000
Company C: ₦2,000,000

Your Holding Company must have more than ₦2,000,000 share capital to maintain proper corporate hierarchy.

Why?
Because a holding company should be financially larger than the companies it controls.

If your subsidiaries already exist but the share capital doesn’t align, Marbcorporate can help you upgrade the share capital before you register the Group structure.

Step 4: Register the Holding Company (Parent Company)

Once the individual companies are in place, you can now register the main umbrella company, usually called:

XYZ Group of Companies Ltd, or
XYZ Holdings Ltd, or
XYZ Conglomerates Ltd

This new company becomes the parent company, and the existing companies become its subsidiaries.

The Holding Company will have:

A unique CAC registration
The highest share capital
The founders as directors
A broad business objective that covers the subsidiaries’ activities
The power to own shares in the existing companies

At Marbcorporate, we ensure your objectives and structure comply with CAC standards.

Step 5: Linking the Subsidiaries Under the Group

After registration, Marbcorporate assists with the corporate structuring that legally connects the companies.

This includes:

Making the holding company a major shareholder in each subsidiary
Documenting ownership structure
Issuing share transfer agreements (where needed)
Updating corporate records to reflect the Group status

This part is crucial because it forms the legal backbone of your Group of Companies.

Benefits of Forming a Group of Companies

Creating a Group gives your business a stronger corporate identity and countless advantages:

. Stronger credibility

Groups command respect in the market — locally and internationally.

. Easier access to investors and funding

Investors prefer structured businesses.

. Better tax and operational planning

Expenses and liabilities can be better managed.

. Brand growth and market expansion

Each subsidiary can focus on a specific area while the group maintains overall control.

. Clearer organization

You avoid mixing finances, transactions, and management of different business operations.

. Need a Group of Companies Set Up? Marbcorporate Makes It Simple

From registering individual companies to creating the holding structure, Marbcorporate handles EVERYTHING:

CAC Registrations
Upgrade of share capital
Director structuring
Holding company registration
Complete linkage of all subsidiaries
Compliance and documentation

We guide you step-by-step so you avoid costly mistakes.

📞 Contact Marbcorporate Today

For professional guidance on forming your Group of Companies:

📞 Call/WhatsApp: 08070734839
📧 Email: info@marbcorporate.com.ng
🌐 Website: www.marbcorporate.com.ng
📸 Instagram: @marbcorporate

Let’s help you build a structure that grows with your vision.

How to Open a Group of Companies in Nigeria: The Complete Step-by-Step Guide