If you are from abroad and have been doing business in Nigeria or you have a job in Nigeria which requires receiving payment from abroad, you’ll eventually find yourself needing to open a domiciliary account in Nigeria.
If this is your first time, the prospect of opening one can be quite intimidating. Don’t worry! In this guide, we walk you through the steps of how to open one it’s quick and easy. We’ll discuss what they are, what they do, and how to open one in Nigeria with the banks that offer them. We’ll also give you some tips on how to open one easily!
Things you need
* Valid passport and driver’s license (or any other ID with photo)
* Identity card and national census card *Foreign exchange account *Account opening form *
*Opening a domicile account means that you are also establishing a home address as a Nigerian citizen which means that your finances will be monitored by the banks.
You can only use it if the account holder or his/her legal representative is present or if you have formal authorisation from him/her. This means that an account cannot be opened on behalf of someone else unless they are present at the bank or have an authorization.
The Step by Step Guide
Open a bank account and provide the following information for your domiciliary account application form:
NCA registration number,
email address and phone number.
Take two copies of the completed application form, one copy will be given back to you while the other is kept by the bank.
An approved application should take 10 working days or fewer before you receive an approval letter which will be delivered by post. Your next step is to apply for a clearance certificate from your government’s revenue office. You’ll need this certificate before you’re able to start trading as a company and pay tax returns.
Adding an ATM card
ATM cards are useful for both deposits and withdrawals from an account. To add a card, you’ll need to call your bank and ask them to send you the proper documentation. Afterward, you can present the documents in person at any ATM across the country, so be sure to take your government-issued ID with you.
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Once you’re finished with opening your domiciliary account, it’s time to get started on making some money! When you deposit money into your account, make sure that you’ve noted down the following information: the amount of money deposited, where it came from (if there was a check), when the deposit was made, and who made it. If there is an amount of interest being paid on your deposit every month or year, note that as well!
The process of withdrawing money will vary depending on what type of withdrawal is being requested. For instance, if someone wants to withdraw all of their funds out of their account at once (known as ‘capital withdrawal’), they would contact their bank directly and provide information about why they want this withdrawal done – like plans for traveling abroad or buying property abroad.
Setting up on online banking
Opening a domiciliary account may be beneficial if you’re looking for ways to put your money away without paying too much tax. Domiciliary accounts allow people who have money invested abroad, but wish to live in their home country, the opportunity to earn on that investment at the same time as avoiding paying double taxation.
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Opening a domiciliary account can be an easy process with an online banking application such as Grey Finance which enables you to deposit and withdraw funds instantly. A good idea is also contact your accountant or financial advisor who can guide you through this process.
Why do I need this account?
A domiciliary account is an account you set up with a bank, usually located outside of your home country or within your home country but recieves money in another currency. Once set up, you will have more financial flexibility as it will allow you access international currencies like the USD or EUR. You can use this account for foreign travel and purchases and investment opportunities.
Additionally, if you would like to open a company that deals exclusively with exports and imports (a non-resident company), setting up a domicile account can help provide the stability needed to get started.
The key thing about opening up an account is selecting the right bank; These are list of banks supporting a domiciliary account in Nigeria.