SETTING UP A FINTECH COMPANY IN NIGERIA
The term "fintech," which refers to financial technology, has been increasingly popular in recent years. It is a word that is used to characterize the introduction of new technology into the financial services industry.
SETTING UP A FINTECH COMPANY IN NIGERIA
The term "fintech," which refers to financial technology, has been increasingly popular in recent years. It is a word that is used to characterize the introduction of new technology into the financial services industry. It is a technological approach to ideas like financial education and literacy, stock investing, cyber security, block chain technology, retail banking, and crypto currency, among other advances, to make these financial transactions quicker, simpler, and more readily available to consumers.
REGULATION OF FINANCIAL TECHNOLOGY COMPANIES IN NIGERIA
It is important to know the existing regulatory bodies of each category of financial technology companies before incorporation. The major Regulator of Financial technology companies is The Central Bank of Nigeria (CBN) which derives its powers to regulate from The Banks and Other Financial Institutions Act, 2020(BOFIA). Other regulators include The National Deposit Insurance Corporation by virtue of the NDIC Act, 2006, The Nigerian Communication Commission by virtue of the Nigerian communication Act, 2003, and The Securities and Exchange Commission (SEC) by virtue of the Investment and Securities Act, 2007, National Insurance Commission and The Corporate Affairs Commission(CAC) by virtue of the CAMA 2020.
REGISTRATION OF FINTECH COMPANY WITH CORPORATE AFFAIRS COMMISSION (CAC)
Every individual or local or foreign company wishing to establish a Fintech startup or entity in Nigeria must incorporate a separate company with the CAC. The procedure for company registration with the CAC is as follows:
Check for availability of proposed company name with Corporate Affairs Commission (CAC) and reserve it
The information to be included in an Application form for Registration of a Company (Form CAC 1.1) are:
Address of the registered office of the company
Authorized Capital of the Company- the regular authorized share capital for a local company is One Million Naira (N1, 000,000).
Particulars of 2 Directors and Shareholders.
Statutory Declaration of Compliance with the requirements of CAMA by a Legal Practitioner
The documents required for the second stage and completion of the incorporation with CAC include:
Signed and Stamped Copies of the Memorandum and Articles of Association
Original documents authorizing the incorporation where applicable.
Photocopy of the information page of the passport or the national identity card of each director or shareholder.
Furthermore, there are other registrations required by law to be carried out by a company with foreign shareholders. They include:
Registration with the Nigeria Investment Promotion Commission (NIPC):
Business Permit:
National Office of Technology Acquisition and Promotion (NOTAP) Registration:
In conclusion, it is impossible to overstate how rapidly technology has advanced in recent years, and the financial and banking industries are well-positioned to benefit from its use. Thus, registering a company with the FinTech related objects with the CAC must commence the setting up of a Fintech company in Nigeria.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080