Steps and Application Procedures On How To Start Bureau De Change Business In Nigeria

Drealup

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The Bureau de change is a place where currency can be exchanged easily at ease. They are mostly located in environments where travelers are common like airport terminals, ship terminals, etc.


Having a bureau de change as one of your business can as well be profitable as fun. The CBN through which most processes are made dictates the profit in which a bureau de change makes and that means an assured profit.


Besides being a profitable venture, it is quite expensive as well. This shouldn't be an issue as with a good business template some of the money could be loaned.

The bureau de change/ exchange market shouldn't be confused with the stock market although they might possess some similarities as you might do well to follow up on that [ The basics on how to invest in Nigeria's stock exchange ].

Before getting yourself into a bureau de change business, it is important you learn some guidelines that might prove important as the business might be sensitive. 




Guide/Template of opening a successful bureau de change business



1. Make a deep research on the business 


This is similar to any kind of business one can think of. As the money that you are ready to risk on this business is huge, go deep into what constitutes this business. Find out about the expenses, structures, and revenues.


2. Construct a plan and find a suitable premise


Have a plan of how your business is to go. Probably it is better to deliberate with someone who is into the business or has a knowledgeable experience. Get a premise on time. You might manage an office in a good location which would generate sales. Many of bureau de change outfits do start in a small office but still make their millions.


3. Have your legal structure erected


You need to get your business registered as a sole proprietorship, partnership, or limited liability company. Advice from a professional solicitor is recommended as well. In order to get recognized and be able to transact your business fluently, it is important you register fully with the necessary offices and get their required licenses. 


Bureau De Change Application/Registration Procedure

 


Listed below are just the basic requirement to get a bureau de change company running. You also checkout CBN's guideline as well at http://cenbank.org/OUT/CIRCULARS/OFID/2007/OFID-04-2007.PDF

₹ A 10m mandatory application money to CBN. This is refundable on approval after. This draft must be submitted with your application.

₹ A N10,000 Application/processing fee.

₹ Incorporate your company with CAC with a share capital of N10m. It should cost up to N400k due to stamp duty.

₹ Join the Association of Bureau De Change Operators of Nigeria (ABCON). Their fees cost approximately N600k. Approval letter from the Association is mandatory before your final approval.

₹ Inspectors will inspect the building you proposed for the business. This might cost you some mere entertainment money.

₹ You have to leave the N500k mandatory deposit with the Central Bank of Nigeria (CBN) when you have been approved. You will get an interest in this half-yearly.

₹ After final approval, you can start bidding from CBN. You can as well as trade with banks.


« Last Edit: May 31, 2020, 01:07:33 PM by Everest »