Are you searching to know How To Start A Bureau De Change Business In Nigeria?
Worry not again, this article was written to serve as a guide to put you through how to get it done easily.
Bureau de change may be referred to as businesses that specialize in exchanging one currency for another. These kinds of businesses usually operate in prominent locations like airports, train stations, and tourist destinations.
However, if you’re already planning to start your own bureau de change business this article will guide you and walk you through the steps you need to take to kick off.
The History Of Bureau De Change
The history of bureau de change can be traced back to medieval Europe when money changers would exchange currencies for traders and merchants.
These money changers would charge a fee for their services and would often be located in public spaces, such as marketplaces.
The term “bureau de change” originated in France in the 19th century when currency exchange services became more regulated.
The first modern bureau de change was established in Paris in the year 1852 by a company called Rothschild Frères.
When it got to the early 20th century, bureau de change businesses expanded globally as international trade increased, and more people traveled between countries.
Today, bureau de change businesses are a common sight in airports, train stations, and tourist destinations around the world.
Bureau de change businesses offer convenience for travelers who need to exchange currencies quickly, but they also charge fees and often offer exchange rates that are less favorable than those offered by commercial banks.
However, some bureau de change businesses offers competitive rates and low fees, making them a popular option for travelers.
Functions Of Bureau De Change
Before going deeper into knowing Bureau De Change Rate in Nigeria, and how to start a bureau de change Business In Nigeria, looking at the functions is also essential.
However, the primary functions of a bureau de change as been listed and analyzed below:
1. Currency Exchange
The number one function of the bureau de change businesses provide the service of buying and selling foreign currency.
They could also provide a range of currencies to choose from and offer competitive exchange rates.
Remember this, bureau change business rates are always higher than that of commercial banks.
2. Money Transfer
Another primary function of bureau de change businesses is to offer money international transfer services to their customers, this will allow them to send money to other countries quickly and easily without any form of delay.
3. Traveler’s Checks
Some bureau de change businesses in the world may issue traveler’s checks, which are a secure way of carrying money when traveling abroad.
4. Prepaid Currency Cards
Bureau De change companies may also issue prepaid currency cards which are usually similar to credit or debit cards but can be funded with foreign currency.
Whenever you’re traveling abroad, you may use this card to purchase whatever you want or even withdraw some money.
5. The Offering Of Financial Advice
Some of the bureau de change businesses offer financial advice to their customers on matters related to currency exchange and international finance.
Their aim is to provide a convenient and reliable service for individuals and businesses that need to exchange currencies for international travel, business transactions, and other purposes.
Requirements For Starting A Bureau De Change Business In Nigeria
For you to get licensed to operate a bureau de change business in Nigeria, certain requirements are to be met.
The requirements for starting a bureau de change business in Nigeria include the following:
- You must meet a minimum paid-up share capital of 35 Million Nigerian currency.
- A non-refundable application fee of N150k is required.
- A non-refundable change of name fee of N150k only is required
- You must provide a non-refundable licensing fee of 1 million naira
- Where applicable, you must provide a non-refundable fee of 150k for a change of name.
How To Start A Bureau De Change Business In Nigeria
To start a Bureau de Change business in Nigeria, you need to meet the requirements of the Central Bank of Nigeria (CBN) listed above and obtain a license.
Here are the steps to follow on how to start a bureau de change business in Nigeria in 2023:
- Register your business with the Corporate Affairs Commission (CAC) and obtain a certificate of incorporation.
- Open a corporate account with a bank that is authorized to deal in foreign exchange e.g you may use the first bank, access bank, or any reputable financial organization in Nigeria.
- Obtain a tax identification number (TIN) and register with the Federal Inland Revenue Service known as (FIRS).
- Apply for a Bureau de Change license from the CBN. The application process involves submitting a formal application, providing a business plan, and meeting the capital requirements. Once your application is approved, you will be required to pay the prescribed fees and meet other regulatory requirements mentioned earlier.
However, immediately after your loan is approved, you have the legal right to start operating your Bureau de Change business in Nigeria.
Frequently Asked Questions On How To Start A Bureau De Change Business In Nigeria
Some of the frequently asked questions related to how to start a bureau de change business in Nigeria today are as follows:
How Much Capital Is Needed To Start A Bureau De Change Business in Nigeria?
The minimum capital requirement for starting a bureau de change business in Nigeria is N35 million.
However, you should understand that this amount may vary depending on the size and scale of your business.
Can I Operate A Bureau De Change Business From Home?
No, you cannot operate a digital bureau de change business from home. You need to have a suitable office location that meets the requirements of the Central Bank of Nigeria.
How Do I Obtain A License From The Central Bank of Nigeria For My Bureau De Change Business?
To obtain a license from the Central Bank of Nigeria for your digital BDC business, you need to submit an application that meets the requirements of the Central Bank of Nigeria.
This includes having a minimum capital base, having a suitable office location, and having a qualified team of staff.
What Are Some Of The Challenges Of Starting A Bureau De Change Business In Nigeria Today?
Some of the challenges of starting a digital BDC business in Nigeria include regulatory requirements, competition from existing BDC businesses, fluctuations in foreign exchange rates, and operational costs.