Botswana - Obtaining Business License for a Capital Goods Finance Company

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Procedure

Apply In Person

1. An application for a license to carry out a business as a finance company shall be made to the Non-Banking Financial Institutions Regulatory Authority. NBFIRA Office Location & Contact Details.
2. Applicants are required to collect and complete the Application to be licensed as a Finance Company Form-1, obtainable at the NBFIRA offices. Forms are not available online.
3. The completed form attached to the supporting documentation as listed under the “Required Documents” of this page, should be submitted to the NBFIRA office. Any omission of the required information and documents will render the application incomplete.
4. Upon receipt of the application, the NBFIRA officer will check for discrepancies or ineligibility in the application documents. If a discrepancy that cannot be immediately corrected exists in any of the documents, the application and all the submitted documents will be returned to the applicant and should not be re-submitted until the discrepancy has been rectified corrected.
5. If the NBFIRA officer is satisfied that all the requirements have been met for the application for the license, the application is registered for processing and consideration.
6. Applicants will be required to pay a BWP 10,000.00 application fee (non-refundable) or as prescribed in the Act/Regulations as reviewed by the Regulatory Authority from time to time. Payment mode is per the authority preferable payment mode
7. Upon making payment, present the proof of payment to be validated by the NBFIRA registration officer, applicant are issued with an acknowledgment slip as proof of submission of the application and for inquiry referencing if the need arises.
8. The NBFIRA office may request additional information relevant to the application for the purpose of ascertaining compliance by the applicant with all applicable laws and regulations. In such a case, the information must be submitted within the stipulated time from the date of notification. Where the applicant fails to submit the required information, the NBFIRA office shall reject the application.
9. After the successful screening of the submitted documents, Where the Regulatory Authority is satisfied that the applicant has complied with all the requirements as may be applicable; and demonstrated the capacity to meet the obligations and compliance requirements it shall, within 90 days of receiving the complete application and requested additional information, issue a licence to the applicant.
10. Notice of the decision (Approval, Deferral, or Rejection) for the application will be communicated to the client in writing.
11. Where the Regulatory Authority is not satisfied that the applicant has complied with the requirements to be registered and license as a finance company, it shall reject the application and outline reason of rejection in writing.
12. While collecting the license the applicant will be required to produce an identification document, NBFIRA acknowledgment slip, approval letter and Payment slip to be validated by the registrar at the NBIFA office.

Appeal against rejection of a license.

1. Any person aggrieved by the decision of the Regulatory Authority not to grant a licence, may appeal against the decision or re-apply, if the deficiencies that formed the basis for rejection of the application have been corrected or otherwise addressed to the Regulatory Authority.

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Required Documents

• Completed Application to be licensed as a Finance Company Form-1
• Constitution of the applicant.
• Certificate of Incorporation from Registrar of Companies.
• Copy of a document showing income tax registration number.
• A copy of any other registration or licensing certificate (if applicable).
• A duly completed directors/shareholders’ questionnaire.
• A copy of title deed or lease agreement for the premises where the applicant is going to carry out business.
• A detailed business plan should include but not be limited to the information below;
  • The objectives and aims of the Leasing Company.
  • A five-year financial projections for the Leasing Company, indicating its expected growth and profitability.
  • Details of the assumptions upon which the financial projections are made.
  • The proposed training programme for staff and management succession.
  • The organisational structure of the Leasing Company, setting out in detail, the functions and responsibilities of the management team.
• Copy of latest financial statements of the business (if already conducting finance business).
• Any evidence of the minimum financial requirements.
• Additional information as may be required by the Regulatory Authority.

Office Locations & Contacts

Non-Banking Financial Institutions Regulatory Authority (NBFIRA)
Address: 3rd floor Exponential Building,
Plot 54351 New CBD,
Off PG Matante Road,
Gaborone.
Private Bag 00314, 
Gaborone
Tel: +267 3102595 / 3686100
Fax: +267 3102376 / 3102353
NBFIRA Office Location & Contact Details
NBFIRA Website

Eligibility

• Any person or company wishing to provide services as Capital Goods Finance Company is eligible to apply.

Fees

• Application fee BWP 10,000.00 (non-refundable) or as prescribed in the Act/Regulations as reviewed by the Regulatory Authority from time to time.

Validity

• The validity of the license is indefinite unless cancelled, revoked or surrendered to Regulatory Authority.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The time frame for processing the application is ninety (90) days from the date of submission of the application, provided all the documents and information have been provided for processing and consideration by the regulatory authority.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since january 1908.

Required Information

• The full personal details, qualifications, experience and economic interests of its;
  • Controller
  • Manager
  • Principal Officer
  • Other Senior Officers or
• Full personal details, qualifications, experience, economic interests and economic interests and occupation of the
  • Board of Directors
  • Shareholders of the applicant, and
  • Ultimate beneficial holders of the applicant
• Trading name(s) of applicant
• Provide all the names if different
• Official registration number of the above legal status
• Date of commencement of trading as a Finance Company (dd/mm/yy)
• Financial year end (dd/mm/yy)
• Income tax registration number
• VAT registration number (if applicable)
• Contact details of the applicant (head office if applicable)

Need for the Document

• Any finance company that wishes to operate in Botswana is required to be registered and license by the Non-Bank Financial Institutions Regulatory Authority.

Information which might help

Display of a License

• A finance company shall display or exhibit its license in a conspicuous place on the authorised place where it conducts its business.
• A finance company shall display a certified copy of its license in a conspicuous place on the authorised place of every branch where it conducts its business.
• A person who contravenes sub-regulation the points above commits an offence and shall be liable, to a fine not exceeding [P5000].

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Non-Bank Financial Institutions Regulatory Authority (Finance Companies) Regulations, 2017

Others

More information which might help people.