Are you willing to start operating a proptech company in Nigeria? Do you know what a prop-tech company is? This article briefly documents the requirements for operating a prop-tech company in Nigeria. Let’s define a prop tech company.
What Is A Prop-tech Company?
A proptech company is a technology company that provides real estate services, such as buying, selling, renting, or investing in real estate. In Nigeria, there are several licenses and permits required for operating a proptech company. ]
This article highlights a couple of them. Check them out in the subsequent subheading.
5 Requirements For Operating A PropTech Company
1. Companies and Allied Matters Act (CAMA)
This law regulates the registration and operation of companies in Nigeria. A prop-tech company must be registered with the Corporate Affairs Commission (CAC) under CAMA.
2. Investment and Securities Act (ISA)
This law regulates companies that offer investments to the public or deal with securities. If a prop-tech company offers asset management, public investments, or other forms of securities, it must be registered with the Securities and Exchange Commission (SEC).
3. Bank and Other Financial Institution Act (BOFIA)
This law regulates banks and other financial institutions. Prop-tech companies that offer property loans, such as mortgages, rent loans, or housing loans, must be registered with the Central Bank of Nigeria (CBN) and obtain a license.
4. Finance Act
This law sets out the taxes that apply to all companies in Nigeria, including prop-tech companies. Prop-tech companies must pay taxes such as VAT, withholding tax, and corporate income tax.
5. Money Laundering (Prohibition) Act
This law is an anti-money laundering (AML) law that is designed to prevent the laundering of money through real estate. Prop-tech companies must register with the Special Control Unit Against Money Laundering (SCUML) to comply with the AML laws in Nigeria.
In addition to these licenses and permits, prop-tech companies may also need to obtain other licenses or permits depending on the specific services they offer. It is important for prop-tech companies to carefully research the licenses and permits that are required in Nigeria before they start operating. Failure to obtain the required licenses and permits could result in penalties or even the closure of the company.
References
1) https://articles.connectnigeria.com/how-to-start-a-proptech-business-in-nigeria/ accessed 16th August, 2023.
2) https://lightclix.software/proptech-startups-main-problems-and-concerns/ accessed 16th August, 2023.
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