How To Start Bureau De Change Business in Nigeria?
A bureau de change is a business that makes its profit by buying foreign currency and then selling the currency at a higher exchange rate. Bureau de change is defined by the Central Bank of Nigeria Manual as a firm that is licensed to carry on foreign exchange business in Nigeria.
Moreover, the bureau de change is a very lucrative business, you can earn up to hundreds of millions of naira in no time. Only if you can meet the requirement to start up the business.
However, it is important to know that there is a possibility that you can also lose everything within a few days. if you are not cautious and diligent because money is a sensitive commodity and it also attracts a lot of attention including that of criminals.
The Requirement For Starting Up Bureau De Change in Nigeria
The following are the financial requirement for setting up a Bureau De Change in Nigeria;
- A non-refundable application fee of N150,000.
- The million paid-up share capital is N35 million
- A non-refundable licensing fee of N1 million
- A Mandatory caution deposit of N35 million
- A non-refundable fee for a change of name is N150,000
- The Registration cost of N35 million share capital company with CAC (fee can be negotiated with a CAC Agent)
What Are The Registration And Application Procedures?
The following are guidelines to set up your bureau de change business in Nigeria. The process comes in 2 stages which are:
- The Approval-In-Principle stage
- The final license stages.
The Approval-In-Principle (AIP Stage)
- Send a formal application to CBN through your lawyer for an AIP Bureau De Change license grant addressed to the Director, Financial Policy & Regulation Department with the following:
- Proof of payment of the minimum required capital of 35 million Naira into the designated CBN account. However, the CBN shall refund this amount with interest after the proposed BDC has obtained its final license.
- A non-refundable application fee of N100,000 in Bank draft payable to the Central Bank of Nigeria.
- Send a copy of the Bureau De Change feasibility report or Business plan containing the following information:
- The aims & Objectives of the Proposed BDC
- The services offered by the BDC
- A proposed training program for the BDC staff and its management succession plan.
- The vision of a financial projection for the operation of the proposed BDC shows the expected growth and profitability.
- The organizational structure of the proposed BDC shows the function and responsibilities of the BDC’s top management team.
- The Anti-Money Laundering/Combating the Financing of Terrorism policy and compliance manual.
- Send a copy of the BDC draft MEMART (Memorandum & Articles of Association).
- Attach a letter of intent to subscribe to the BDC shares signed by each subscriber
- Attach a copy of the list of the proposed shareholders in tabular form showing their business & residential addresses. As well as the name and addresses of their respective bankers and BVN details.
The Final License Stage
- Submission of an application to the CBN Governor for the Final Grant of a BDC License not later than 6months after the grant of the AIP with the following information;
- Proof of payment of a non-refundable license fee of 1 million nairas.
- The proposed members of the top management Detail of the BDC
- Evidence of incorporation of the BDC with the CAC
- Evidence of having a suitable office for the BDC operation.
Which currency is most profitable in forex?
The Euro/US dollar pars are the most profitable currency in forex because of their high Liquidity.
How do exchange offices make money?
Exchanges offices make their money by charging customers service fees and also by taking advantage of the bid-ask spread in the currency.
How much is naira to dollar in the black market?
Currently, $1 is equivalent to N740 in the black market.
Conclusion: How To Start Bureau De Change Business in Nigeria
However, if you are seeking to go into this business, then you need to consult with your lawyer. And read more about CBN guidelines on Bureau De Change to get more insight into the business.
Thank you for reading this article, and we hope you got a lot of helpful information from the post. Please share and comment
Follow us on social media