Procedure to register a Finance Company in Nigeria

Procedure to register a Finance Company in Nigeria

December 25, 2019

For a finance company to be registered in Nigeria, an application must first be made in writing to the Central Bank of Nigeria (CBN) with the following details;

  1. An application fee in a draft of N100, 000(one hundred thousand naira only) payable to Central Bank of Nigeria
  2. Deposit of a minimum capital of N100, 000, 000 (One Million Naira only) in draft payable to the central Bank of Nigeria.
  3. Evidence of payment of the minimum capital of N100, 000, 000 (One Hundred Million Naira) by the proposed shareholder.
  4. A detailed business plan or feasibility study.
  5. A copy of the draft Memorandum and Articles of Association of the company.
  6. A letter of intent to subscribe to the Finance company signed by the shareholders.
  7. A list of the proposed shareholders in tabular form, showing their business, residential addresses and the names and address of their bankers.
  8. The names and the curriculum Vitae of each of the proposed members of the Board of directors including other directorships held and it must be signed by them.

After this, the CBN may grant the license to the Financial company to operate as a Finance company, but it can be revoked or varied from time to time.

Upon granting the License to the Finance company, the company can now register with the Corporate Affairs Commission. To register a Finance Company with the Corporate Affairs Commission, the following are required;

  1. Notice of approval (Availability form)
  2. CAC 1.1 (Application form)
  3. Memorandum and Articles of Association
  4. Evidence of payment of Stamp duty.
  5. Approval in Principle from Central Bank of Nigeria.
  6. Payment receipt of the corporate Affairs Commission.
  7. Identification Card of the Directors, Company Secretary and Shareholders

Note that the shareholding of the company must be up to the minimum share capital to register a finance company and the objectives must reflect that of a finance company.

The Corporate Affairs Commission will register the finance company if the requirements are met.

See https://www.cbn.gov.ng/out/2014/ccd/revisedguidelinesforfinancecompanies innigeria.pdfor https://services.cac.gov.ng

  • –  Team 618 Bees

 

618 Bees can help you quickly and easily obtain a Finance Company License and register the company. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with both the CBN and the CAC.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

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Frequently Asked

  • Why must I file Annual Returns?

    It is a mandatory statutory requirement under the Companies and Allied Matters Act to file Annual Returns yearly. 

  • What is the first thing I must do to register a business in Nigeria?

    To register a business in Nigeria; you would need to conduct a name search of the business. You can achieve this using your CAC-CRP account.

  • What is a testimonium clause in an agreement?

    This is the part of the agreement where the witness attests to have witnessed the execution of the agreement.

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • Is it legal to transfer the personal data you obtained legally to another person?

    No, its not legal. This is because the law prohibits anyone from transferring the data of a third party to another person without consent from the third party to do same even if the data was rightfully obtained in the first instance.

  • What is the importance of registering a patent?

    The main reason to register a patent is to ensure that the inventor is able to exclusively commercially exploit an invention. The rights to a patent are vested in the “Statutory Inventor” i.e. the first person to file and register the patent.

  • What will happen if I buy the wrong category of forms with NAFDAC?

    Nothing, the purchased form will be in your account for future use.

     

  • Why do i need a Shareholders Agreement?

    You need a Shareholders Agreement to protect your investment in a company.  The shareholders Agreement establishes a fair relationship between all shareholders and sets out how the company is run.

  • Can I trademark my logo and name separately? Why is this a good idea?

    Yes you can. The advantage is that it gives you the opportunity to have more than one logo or the opportunity to change your logo easily as opposed to registering the name and the logo as one trademark.

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