FFMC license online is something that every Full Fledged money changer is seeking nowadays. Reserve bank of India have allowed the existence of this license to:
- Promote the competition in the money changing business.
- Ensure that there is no monopoly when it comes to holding foreign currencies.
- Regulating the amount of foreign money exists in the country.
Suitable for entrepreneurs of all scaled, you can only acquire this license after going through the FFMC license application process. In this article, we are going to simplify this process for you.
What is a Full Fledged Money Changer?
Those with the FFMC license are empowered to do the following types of business:
- Exchanging currencies with tourists of Indian nationals.
- Provide foreign exchange services via a trading company.
- Holding foreign currencies in case of emergencies.
Let’s now discuss the process of acquiring the FFMC license without any issue.
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The procedure to obtain FFMC license?
FFMC license full form Full Fledged Money Changer license can be obtained by following the steps given below:
- First, you’d need to navigate to the FFMC website. You can find it as one of the sub-domains under Reserve Bank of India.
- Afterwards, you have to register as a new user before you’re allowed to fill the application form.
- To finalize the submission, pay the requisite FFMC license fees.
- Once the application is filled and the documents are submitted, RBI will scrutinize it thoroughly.
- If RBI sees any errors with the application form or the documents, you’ll instantly get the notifications with instruction to fix them.
- Once you’ve dealt with all the issues and the RBI accepts your application, you’ll obtain the FFMC license.
Point to remember is that FFMC license isn’t an indefinite permit. After a while, the license will vanish and you’d have to file for FFMC license renewal.
In case you don’t your FFMC license will be cancelled by the RBI.
FFMC License, meaning an authorization issued by the Reserve Bank of India that allows you to start a business as a Full-Fledged money changer. Obtaining this license entails adhering to specific eligibility criteria and filing the application form.
FFMC license lets you start a Full-Fledged Money Changer Business. It’s a business that entails a lot of profit depending upon the nature and the location. That being said, to start it, you need to specify the nature of business, the location of business and many other details when you file the application for FFMC license online.
When you finally obtain the application, you’ll see all the details you’re required to fill. Thus, through this article, we are going to breakdown what is the meaning of each detail so that you can yourself will the application form easily.
The format of FFMC License application form
Following is the format of FFMC license application form. On the left, we have specified what’s written in the application form. On the right, we have explained the meaning of those details:
APPLICATION FORM FOR FFMC LICENSE UNDER SECTION 10(1) OF FEMA, 1999
| Full name of the applicant | Explanation: You have to enter your name in this specific section. Ensure that you’re entering your complete name that can be cross checked with the ID proof that you submit to the Reserve Bank of India. | |
| 2. Address in full | Explanation: Provide your complete address. It’s to ensure that the RBI can contact if you in case the need arises. | |
| Name of location/s where the applicant proposes to conduct Money Changing Business (Please enclose copies of Licenses under Shops and Establishment Act ) | Explanation: Enter the complete address of where the Full-Fledged Money Changer Office is located. Make sure that you also add landmark of the same. If your FFMC license consultant states that you also need to have Shops and Establishment act license in your state, provide a copy of the same. | |
| (a) Date of establishment of the company (b) Name/s and address/es of the Directors of the company | Explanation: Provide the date of when the company was established. Also provide a document sheet which has the details of all the directors including their addresses. As you can see, this section is too small to contain all that information. Thus, instead of inputting the whole information here, you just have to say that you’ve attached the required documents. | |
| Copy of the Certificate of Incorporation of the company | Explanation: Provide the incorporation certificate of the company. And in this section, paste your CIN number. | |
| Copy of the Certificate of commencement of business of the company | Explanation: Provide the certificate of commencement of business and enter the unique ID you receive in the certificate in this section. | |
| Copy of Memorandum of Association together with a letter indicating the clause which provides for taking up money changer’s business | Explanation: As MOA doesn’t have any unique ID, all you have to enter here is “Provided” | |
| Confidential report from the applicant’s bank/s in CIR format | Explanation: The confidential report that you receive from the bank is proof that you net worth makes you eligible for the FFMC license. | |
| Net Owned Funds A copy of the latest Audited Balance Sheet of the applicant company together with a certificate from their Chartered Accountant certifying their net owned funds as on the date of application and calculation thereof is to be enclosed. | Explanation:Enter your net owned funds. They should match with the Net Owned Funds Certificate that’s audited by the Chartered Accountants. Attach the certificate and a copy of audited balance sheet as well. | |
| Declaration to the effect that the company and any of its directors are not under investigation/ adjudication of any law enforcing agencies, such as ED/DRI & also that no criminal proceedings filed by Crime Investigation Agencies are pending against the company or any of its directors. | Explanation: One of the major eligibility criteria of the getting FFMC license is to ensure that none of the directors and you have a case filed against you. Thus, provide declaration of the same. And add “Provided” in this section. | |
| Undertaking to post competent staff to handle the money changer’s business | Explanation:Provide a declaration that your staff is capable of handling FFMC business. It’s important when you’re applying for FFMC license renewal as well. | |
| Name, designation and signature of persons authorized to deal in foreign exchange. | Explanation:Provide the complete details that is: Name, designation and signature of the head of your FFMC company. | |
| A brief write up of the activities of the applicant/ nature of business | Explanation:Provide a document in which you explain the nature of your business. Basically, you’ll describe what you do in your particular FFMC. | |
| Whether the applicant had applied earlier for FFMC/ RMC license. If so the particulars thereof. | Explanation:In case you’ve filed the FFMC license application before this one, provide details of the same. RBI will assess the reason your previous application was rejected. | |
| Any other particulars / special reasons the applicant may wish to state in support of the application. | Explanation:Provide a cover letter to support your application. It will ensure that you get the license on time. |
We undertake that in the conduct of money changing business, we shall at all time abide by the rules/ regulations/ orders/ directions/ notifications which Reserve Bank of India may from time to time issue
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in this behalf.
Explanation: You have to sign the undertaking that you’re going to comply to all the RBI rules on the basis of which you’ll be granted the license.
Place :
Date:
Signature of the applicant
with seal
Enclosures:-
- Bankers’ confidential Report
- Attested copies of audited accounts for the past 3 years.
Note:- Single branch FFMCs shall have net owned funds not less than Rs. 25 lakh while FFMCs
intending to operate through more than one branch will have to maintain net owned funds not less
than Rs. 50 lakh.
Explanation: The “Note” mentioned above is the eligibility criteria for FFMC License.
Conclusion
To obtain the FFMC license, you have to adhere to the rules. By studying the above format, you’re now one step closer to your money changer dreams. Reach out to Registrationwala if you want to go all the way and start the process.
Interested in FFMC license? Let’s take a look at the FFMC license application form. Understanding it will take you one step closer to the license.
