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

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • Must my Company Secretary be a Lawyer?

    Although it’s ideal to have a lawyer as a company secretary, it is not compulsory for small private businesses.

  • What is an execution clause in a contract?

    This is the section in which the parties sign the contract or agreement.

  • What are the penalties for not registering my products with the SON?
      1. Seizure of goods by the Inspectorate and Compliance Directorate
      2. Payment of a fine.
      3. Prosecution

     

  • Can I use the data collected legally for one purpose for another purpose?

    No, you can’t use the data collected for one purpose for a different purpose.

  • Who benefits from copyright in Nigeria?

    The creator of the original copyright work (the Author) is the one who benefits but he can transfer his right to a third party.

  • What are the product categories available when registering with NAFDAC?

    The product categories include: Food, Cosmetics, Drug, Medical Device, Agro-Chemicals & Pesticide, Veterinary Products, Vaccines & Biologicals, Herbal and Nutraceuticals and Water

  • How many shareholders do I need to start a company?

    A minimum of one (1) adult shareholder is required to form a company.

  • Why do I need a trademark?

    You need to register your trademark because if you don’t register it, someone else can! It helps identify you as the source and indicates a consistent level of quality of your products and services. Securing a registered trademark protects your brand, and provides you with tools to prevent someone else from using similar signs and riding off the back of your business.

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