How to start a Bureau De Change Business in Nigeria and Make Money
Hi guys! Welcome to Make Money Verse. In this article, I'll walk you through how you can make money doing Bureau De Change Business in Nigeria. But before we dive into it, see below the list of what I'm going to cover in this article.
How to Start Bureau De Change Business and Make Money.
Bureau De Change Business in Nigeria is a type of profitable business that involves buying and selling of foreign currencies. A bureau de change business makes profit by buying foreign currencies at low rate and resell it to people or organizations at higher rate.
Bureau De Change is defined is defined by the Central Bank of Nigeria (CBN) manual as a firm that's meant to carry out foreign exchange businesess in Nigeria.
The bureau de change business is a very lucrative business in Nigeria. If you can meet up the requirements to startup the firm, you can make up to hundreds of million naira in small time. However, it's also essential to know that there's a possibility that you can lose everything in just a day. WHY? Because money is a very sensitive commodity, so you have to be cautious and diligent of volatility and criminals.
Requirements to start a Bureau De Change Business in Nigeria
The following are requirements, criteria and procedure to register and apply for a Bureau De Change Business License in Nigeria.
APPLICATION FOR BUREAU DE CHANGE LICENSE
To start a Bureau De Change Business in Nigeria, there are always two license you'll need to obtain;
- Approval-In-Principle (AIP)
- Final License
APPROVAL-IN-PRINCIPLE (AIP) LICENSE
A application form inform of a formal letter needs to be forwarded to Central Bank of Nigeria (CBN) governor before you could be grant AIP license for your Money Exchange Business.
Moreso, some financial requirements and documents needs to be attached to the application letter. These documents includes;
- A feasibility report
- A copy of the draft Memorandum and Articles of Association
- A letter of intent
- Personal details of the proposed shareholders.
After that, you must first obtain the AIP license to proceed with the Bureau De Change registration with Corporate Affairs Commission (CAC). An approval-in-principle must have been obtained from the CBN because this will be presented to CAC for the Bureau De Change business registration.
However, the Approval-in-Principle License is not the approval for the commencement of business, as further steps need to be taken.
FINAL LICENSE
The registrar of a proposed Bureau De Change is expected to submit an application for a final license six months after the grant of Approval-in-Principle. This is the final license to obtain to commence business. But before the final license is granted, see below additional requirements and criteria.
FINANCIAL REQUIREMENTS FOR REGISTER BUREAU DE CHANGE BUSINESS IN NIGERIA
You'll need these financial documents to set up a Bureau De Change Business in Nigeria;
- A minimum paid-up share capital of N35 Million.
- A non-refundable application fee of N150,000
- A non-refundable licensing fee of N1 Million
- A Mandatory caution deposit of N35 Million
- Registration cost of N35 Million share capital company with CAC (fee can be negotiated with a CAC Agent)
- A non-refundable change of name fee of N150,000 (where applicable).
For more detailed information about Bureau De Change requirements and operations and Non-permissible activities, visit this page.
HOW TO MAKE MONEY DOING BUREAU DE CHANGE BUSINESS
To make money through Bureau De Change Business in Nigeria, you must have first obtain all the necessary license from CBN and CAC. After those license, you can proceed to commence your business and start making cool cash through Money Exchange Market.
Although, Bureau De Change (BDC) sector has remained an important unit of the Nigerian financial market playing a crucial role in exchange rate stability and job creation. However, operators must comply with authority guidelines for running the business, and not doing Non-permissible activities.
That's, bureau de change operator must keeps proper registers and records of all transactions for transparency and compliance with Anti Money Laundering Provisions, CBN Guidelines, Circulars or directives. Furthermore, the arrival amount sold to or bought from a customer should be issued by a BDC through a machine list or receipts.
Making Money with Bureau De Change Business in Nigeria is simple. After the obtainment of all the required licence and compliance with CBN guidelines, BDC Business is profitable by buying foreign currency (such as USD, GBP, EURO e.t.c.) and then selling the same currency at a higher exchange rate or by charging commissions or fees.
It's also popularly known as foreign exchange or currency exchange business which is indeed seen as a crucial part of international travel.
FAQs about Bureau De Change Business
Which currency is most profitable in BDC business?
The Great British Pound Sterling (GBP), European Euro (EURO) and United States Dollar (USD) are the most profitable currencies in the bureau de change market due to their high liquidity.
How much is dollar to naira in black market rate?
At the time this article was published, $1 is equivalent to N780.
How do Bureau De Change Make Money?
Exchange offices make money through charging customers services fees and taking advantage of the bid-ask spread in the currency.
Conclusion on BDC Business
Like I said earlier that making money through Bureau De Change Business in Nigeria is simple and easy only if you can provide all the requirements and comply with CBN guidelines of doing the business.
The amount you can make doing Bureau De Change Business in Nigeria is huge and as huge income you see, also take note of currency volatility and criminals to avoid huge losses.
Thanks for reading this article. I believe you've learned one or two, please drop your notice in the comments section and share this article to the world.
