Starting A Business – Bloovera UK

Category: Starting A Business

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Requirements For Fintech & Payment Solution Service Providers In Nigeria

Ola
July 17, 2022

The financial sector is one of the most regulated sectors in Nigeria. As such, companies operating in the sector are required to meet stringent requirements before they can operate in the country. For a Fintech company to operate legally in Nigeria, it must get a license from the CBN. The Central Bank of Nigeria (CBN) is the regulatory body saddled with the statutory duty of administering the affairs of the financial activities in Nigeria. According to the information published by the CBN in 2021, there are six (6) license categories for Fintech companies in Nigeria, which are Switching and Processing license, Mobile Money Operator license, Payment Solution Services (PSS) license, Payment Terminal Service Provider (PTSP) license, Payment Solution Service Providers (PSSP) license, Super Agent license. LICENCE CATEGORY CAPITAL REQUIREMENT 1. SWITCHING AND PROCESSING LICENCE 1. N2,000,000,000.00 shareholders’ funds unimpaired by losses. 2. Preceding 3-years audited financial statements of the company (If applicable). 3. Deposit of refundable N2, 000, 000, 000 in Escrow into CBN PSP Share Capital Deposit Account in one lump sum and made in the name of the company applying for the licence. The Escrowed funds are invested in treasury bills, subject to availability of treasury instruments and would be refunded accordingly. 2. MOBILE MONEY OPERATOR LICENCE 1. N2,000,000,000.00 shareholders’ funds unimpaired by losses. 2. Preceding 3-years audited financial statements of the company (If applicable). 3. Deposit of refundable N2, 000, 000, 000 in Escrow into CBN PSP Share Capital Deposit Account in one lump sum and made in the name of the company applying for the licence. The Escrowed funds are invested in treasury bills, subject to availability of treasury instruments and would be refunded accordingly. 3. PAYMENT SOLUTION SERVICES (PSS) 1. N250,000,000.00 shareholders’ funds unimpaired by losses 2. Preceding 3-years audited financial statements of the company (If applicable) 3. Deposit of refundable N250, 000, 000(for entities applying for the three (3) licences at the same time: PSSP – N100m, PTSP – N100m, and Super Agent – N50m) in Escrow into CBN PSP Share Capital Deposit Account in one lump sum and made in the name of the company applying for the licence. The Escrowed funds are invested in treasury bills, subject to availability of treasury instruments and would be refunded accordingly. 4. PAYMENT TERMINAL SERVICE PROVIDER (PTSP) LICENCE 1. N100,000,000.00 shareholders’ funds unimpaired by losses. 2. Preceding 3-years audited financial statements of the company (If applicable). 3. Deposit of refundable N100, 000, 000 in Escrow into CBN PSP Share Capital Deposit Account in one lump sum and made in the name of the company applying for the licence. The Escrowed funds are invested in treasury bills, subject to availability of treasury instruments and would be refunded accordingly. 5. PAYMENT SOLUTION SERVICE PROVIDER (PSSP) 1. N100,000,000.00 shareholders’ funds unimpaired by losses. 2. Preceding 3-years audited financial statements of the company (If applicable). 3. Deposit of refundable N100, 000, 000 in Escrow into CBN PSP Share Capital Deposit Account in one lump sum and made in the name of the company applying for the licence. The Escrowed funds are invested in treasury bills, subject to availability of treasury instruments and would be refunded accordingly. 6. SUPER AGENT LICENCE 1. N50,000,000.00 shareholders’ funds unimpaired by losses. 2. Preceding 3-years audited financial statements of the company (If applicable). 3. Deposit of refundable N50, 000, 000 in Escrow into CBN PSP Share Capital Deposit Account in one lump sum and made in the name of the company applying for the licence. The Escrowed funds are invested in treasury bills, subject to availability of treasury instruments and would be refunded accordingly. Bloovera helps entrepreneurs across the world take care of all their business, creative and digital needs. Do you have any question or you would like us to be of help, feel free to reach out to us on any of our contact channels. Call/WhatsApp +23409053334874

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Understanding Business Name Registration In Nigeria

Ola
July 11, 2022

Business Name (also called Enterprise) is the most basic form of business registration in Nigeria. Below are things you need to know about Business Name. Business Name is not a company:- Though it is regarded as a business structure, it is not a legal entity. It is a mere registration of a name being used for business. As a Business Name, it can not sue and it cannot be sued as it is not a legal entity. As the owner of the business, you’re not protected from the labilities of the business. For instance, your personal properties can be seized to pay for your business’ liabilities. There are two forms of Business Name registration; there is Solepropriety which involves only one owner and there is Partnership which involves more than one owner. You can open a business bank account with a Business Name registration. Business Name does not pay federal income tax, but you’re still required to pay Value Added Tax (VAT) and your personal income tax You’re required to file an annual return with the Corporate Affairs Commission Do you have any question about business name registrations or you need help with starting a business, feel free to get in touch with us through any of our contact channel. Call/WhatsApp 09053334874

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How To Open A Business Bank Account In Nigeria

Ola
July 10, 2022

There are many reasons why you would want to have a business bank account. Having one helps you separate your business money from your personal money and it increases customer’s trust in you. It’s not difficult to open a business bank account in Nigeria. But to do so, there are couple of steps you need to follow. 1. Register your business with the Corporate Affairs Commission Before you open a business bank account in Nigeria, your business must be registered with the Corporate Affairs Commission, the government agency in charge of business registrations in Nigeria. Only a registered business can open a business bank account in Nigeria. Your business can either be registered as a business name (a.k.a enterprise) or a limited libility company (LLC). Both business structure are eligible for a business bank account. 2. Get your Tax Identification Number (TIN) Every business intending to open a business bank account in Nigeria must have a Tax Identification Number (TIN). The TIN is a unique set of numbers that will be issued to your business for the purpose of tax filing. You will be able to get your business TIN after your business has been successfully registered by the Corporate Affairs Commission. 3. Decide which bank you want There are numerous banks in Nigeria offering various banking products that target businesses, both small and large. It is important to research each bank as they have different offerings especially with regards to the cost of opening an account and the cost of maintaining the account. There are also other considerations you might want to consider. Many Fintech companies today offer different digital services which might be perfect for your business needs. 4. Prepare the required documents While the banks might have varied product offerins, generally there are a couple of documents you will be asked to present before you can open a business bank account in Nigeria. Below are the general requirements to open a bank account in Nigeria. CAC certificate (issued by the Corporate Affairs Commission) Status report (iisued by the Corporate Affairs Commission) Memorandum of Association (only for limited liability companies, issued by the Corporate Affairs Commission) Tax Identification Number Resolution to open a bank account Proof of business address Director’s information, including means of identification (for limited liability company) Proprietor information, including means of identification (for business name) 5. Proceed to the bank of your chosen Once you have all the requirements checked, the next step is to proceed to the bank of your chosen. You will be given a form to fill and submit. If the bank officer finds all information supplied to be completed, an account will be opened for you and your business bank account will be issued to you. Some of the banks also have a channel on their websites where you can submit an application for business bank account opening. But in most cases, you would still have to visit the bank to complete the process. The importance of having a business bank account can not be over emphasised. If you have any questions yu would like us to answer or you want us to help you with the setting up of your busines, feel free to reach out to us through any of our contact channels. Call or Whatsapp +23409053334874 Email: contact@bloovera.com.ng

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5 Things You Shouldn’t Do Before You Register Your Business

Ola
July 10, 2022

I understand that excitement when a business idea pops into your head; you want to jump out of bed and start getting things done immediately. While there are things you can start doing immediately such as research and product development, there are a couple of things you shouldn’t be doing until your business is registered. Below are 5 things you shouldn’t do before you register your business. 1. Print your business cards Do not be in a rush to print your business cards. it can wait till your business is registered. 2. Enter into contracts While you can enter contracts as an individual, it is advisable to do so as a company. This gives you credibility. It also gives you a legal shield by separating you personally from the action of the company. If yur business is not registere, do not go into contracts. Get your business registered before doing so. 3. Print your marketing materials Avoid the mistake of printing your marketing materials when your business is not yet registered. A vital reason for this is that, your chosen business name might not be available for you to register. Someone else might have already registered the name or the government might not approve the name for you due to some legal reasons. You don’t want to end up building a brand that you can’t own. 4. Launch your website It is important to register your business before proceeding to launch a website. For obvious reasons, you would want your website name (domain name) to reflect your business name. Until your business is registered, you’re unsure of what name you would end up using. 5. Create branded items Before you start creating those branded items such as mugs, shirts, pen, etc, it is important you’re sure of what your business name will end up being. You don’t want to spend money on branded items only to realize that name you’re branding belongs to someone else. It is important to get your business registered to avoid unnecessary mistakes. Registering your business in Nigeria is cheap and fast. You can proceed to the Corporate Affairs Commission’s website to get it done or you can reach out to us to help you get it done with three days.

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7 Differences Between A Business Name And A Limited Liability Company

Ola
September 16, 2021

Differences Between A Business Name And A Limited Liability Company In Nigeria, you can either register your business as a business name or as a limited liability company. While you can carry on business and open business bank account with both registrations, there are some differences between the two. Below are some of the key differences between a business name and a limited liability company. 1. Naming By law, it is required that a Limited Liability Company’s name ends with either “Limited” or “LTD”. Example of such is Blooms Universal Ltd. On the other hand, a business name does has no requirement, hence names such as BusinessPrints Nigeria, Bosset Cakes And Confectionery 2. Liability of Owner(s) Owners of a Limited Liability Company are only liable to the extent of the shares they have in a company, meaning they can not be liable for the company’s liabilities. For example, if the company has a debt which it fails to repay, the creditor can not seize the owner’s assets. For a business name, as the owner you are liable for all the liabilities of your business, meaning if your business takes a loan and fails to pay back, the creditor can take over your properties. 3. Shares Issuance A Limited Liability Company can issue shares, either to the owners, employees or to investors. By issuing shares, you can raise funding from investors who will receive a certain number of the company’s stock in return for money. An ordinary business name registration does not have shares, therefore when you only register a business name, you can not raise equity funding from investors. 4. Legal Status Under the Companies And Allied Matters Act (CAMA 2020), a Limited Liability Company is recognized as a legal entity. This means your Limited Liability Company can sue and can be sued. For a business name, it can not sue and it can not be sued. Instead, the business owner could be sued. 5. Governance/Management A limited liability company is required to have at least one director who is responsible for the governance of the company. A business name can not have a director or board of directors. A business name has at least one proprietor who owns and is responsible for the management of the business. 6. Ownership A limited liability company can have up to fifty (50) shareholers. A business name can have a maximum of 20 proprietors (partners), except for accounting and law firms. 7. Annual General Meeting A limited liability company is required to hold an annual general meeting where shareholders vote on key decisions. A business name is not requied to hold any meeting and is not required to vote before making any decisions. Bloovera helps entrepreneurs aross the world take care of all their business, creative and digital needs. Do you have any question or you would like us to be of help, feel free to reach out to us through any of our contact channels. Call/WhatsApp +23409053334874

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How To Start A Business In Nigeria

Ola
April 22, 2018

How to start a business in Nigeria If you are the kind who likes to be your own boss, or you have a unique business idea which you want to bring to life, then starting your own business is the right way to go. As exciting as this might seem, you have to take the necessary steps to ensure success at the end of the day. This article talks about how to start a business in Nigeria in general, assuming you have all it takes to start and run a business, including adequate capital. Some of my future articles will discuss how to start and run small businesses with little money. Starting a business in Nigeria has become easier in recent times, thankful to the advent of technology and government’s efforts in making it easy to start business. Below are how to start a business in Nigeria 1. Write A Business Plan Like anywhere else in the world, the first thing to consider while starting a business is a business plan. The importance of a business plan can’t be over emphasized. Your business plan should not be a fancy document with only big pictures of your dream but a detailed plan of what your proposed business is and how you intend to run it. A future article will discuss in detail all you need to know about writing a business plan. While writing your business plan, you must decide on the following 2. Choose A Business Location Your business requires a location, regardless of what type of business you are doing. Every business has target customers and they are based in a location. Choose your location based on the kind of business you are starting and the customers you are targeting. Make your location closer to your customers as much as possible. If your business deals with production, you might want to consider other factors such as closeness to raw materials. 3. Decide If You Require a partner A lot of people started their businesses without partners. But with today’s business environment, there is a big advantage to having a partner while starting a business. The number one reason you might want to consider having a partner is that a partner can complement your skills. This is often the case with businesses that require different skill sets. For instance one partner could be a technical person while the other is well grounded in business management. By bringing on a partner who has a skill which you don’t have, you would eliminate the need to hire someone. Though there are downsides to having a business partner, the advantages outweighs the disadvantages. You can always deal with the downsides by being professional in everything you do. 4. Raise Startup Capital Your business requires capital, regardless of its size. You must decide on where it will come from before you start your business. Business capital can come from several places but you should know that as a new business, some sources of capital will not be easily accessible to you, such as loans from commercial banks. The number one source of your startup capital is your personal savings. As an entrepreneur, you should be able to have some savings, no matter how small it is. If you can’t invest your own money in your business, why should anyone give you their money? Your second source of capital is friends and family. If you can’t convince your friends and family to invest in your business, or if they can’t believe in your plan, why should anyone else do so? Then you can consider other sources of capital. These include angel investors, grants and small loans. 5. Decide On A Business Legal Structure Before taking the step to register your business, you should decide on the legal structure you want for your business. There are three legal forms your business can take. These are sole proprietorship, partnership and corporation. The easiest of these is the sole proprietorship, with which you are the only owner of your business. In Nigeria, you can either register your business as a business name or as a limited liability company. You can read our article on the difference between a business name and a limited liability company. 6. Register With The Government If you’ve decided on your business legal structure, you can proceed to register with the government. The agency responsible for business registration in Nigeria is the Corporate Affairs Commission of the federal government. If you’re ready to take this step, we will help you get it done at the lowest price possible. Remember, it is very important to get your business registered. 7. Register With Tax Office Once your business is registered, do not waste time before you head to the Federal Inland Revenue Service office closest to your place of business. In Nigeria, you are required to pay tax if your business is making profit. You need to obtain a Taxpayer Identification Number (TIN). 8. Get A Business Account You should visit one of the commercial banks and get a current account with your business name. You do not want to be carrying out business transactions with your personal account. Before you proceed to open a business bank account, you should know that your business must have been registered and you need a Tax Identification Number (TIN). 9. Purchase Insurance Policy While this might seem unnecessary, it will protect your business in case of an incident such as theft or accident. 10. Build Your “A Team” Now it’s time to build your team. You will not just build a team, you will build an A Team. Every great business requires a great team. To build a great team, you must begin by selecting the right individuals. Decide on who is required. Start by making a plan. In the plan, you should identify what skill is needed, which position you need to fill, then you can look for the right person for the job. Remember that there