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What is a domiciliary account?
There are times that you or your business would like to make and receive payments in a foreign currency. A Domiciliary Account allows you to have accounts in currencies besides the Naira. You’ll also be able to pay into these accounts through cash deposits/inflows, traveler’s cheques or foreign currency cheque deposits.
Also, domiciliary Account also allows customers to maintain accounts in a foreign currency and can withdraw cash or make transfers or payments to suppliers offshore.
Domiciliary account, how it works
To open a domiciliary account in Nigeria, you will need to provide the bank the documents below. Keep in mind that for limited Companies and partnerships, you will have to identify at least two principals to the account. The popular domiciliary account in Nigeria is the gtbank domiciliary account, which you can open with the bank, even if you don’t have an account with GT bank or sign up with gtb internet banking.
1. Proof of identity
The bank needs to see ONE of the following documents: You can provide photocopies of these documents.
- Valid international passport
- Driver’s license – Nigeria or International
- National identity card
2. Proof of Nigerian address
Also, you need to provide proof of one of the following:
- Power company bill (such as electricity, phone bill, waste bill, water) from the last couple of months- Most banks accept three months old electric bills or current month bill
3. Personal details of signatory/directors
- Name, contact address and the contact phone number
4. General Business details
- Business names, Nigerian address and contact numbers, principal trading activity and date your business started.
For Limited Companies and limited liability partnerships, the bank would have to see proof of business registration, such as:
- Memo and Article of Association
- Copy of Certification of Incorporation
- Copy of form C07
- Printed copy of Tax Identification Number (TIN)
- Company seal
- One passport photography of each signatory to the account
- Board of director purpose (signed by 2 directors/1 directors and Company Secretary)
So, how can you withdraw from a domiciliary account in Nigeria?
Opening a domiciliary account is a brilliant thing to do because it lets you receive foreign currency in your account and exchange them when you need to in a black market.
If you’ve been saving or transferring funds into your domiciliary account in Nigeria, you might at one time need to make a withdrawal. And how can you make that withdrawal?
There are many ways one can make a withdrawal from a domiciliary account in Nigeria, although this also depends on the types of domiciliary account you have: Savings or current
How to withdraw
1. Submitting a detailed written application for withdrawal:
– Just write an application for a withdrawal addresses in your bank branch’s manager and you’d get the money, within 24 hours.
2. Using a withdrawal slip:
This works like a normal withdrawal slip used in many banks in Nigeria. You can find one across the counter, fill and wait to be paid from your foreign currency teller.
3. Writing a cheque (For currency domiciliary accounts):
Writing a cheque to withdraw out of your account is quite simple. Just indicate the total amount that you need along with your usual signature. You should be able to cash the cheque in front of the bank counter or pay into another domiciliary account. Of course, you will be paid in the foreign currency – Dollar, Euro, Pounds etc.
4. Wire transfer:
You can easily perform a wire transfer from bank to bank with either local or international and the fund can be transferred within a week.
5. Using an ATM card:
In case your domiciliary account is linked with ATM cards like MasterCard or visa, it is possible to withdraw from the globally connected ATM in Nigeria in Naira or abroad in the country’s currency. Keep in mind; this kind of withdrawal normally comes with a fee.