FFMC license, full form, Full Fledged Money Changer License is the permission issued by the Reserve Bank of India that allows one to do currency exchange business. Because of the globalized world that India now lives in, it’s one license that everyone is always looking for. However, most among them don’t know the inner details of the license.
Details that through this blog, we are going to try to convey.
What is the FFMC license?
FFMC license meaning is authorization from the RBI to conduct a money exchange business. With this permission, you can:
- Setup a company to provide money changing services to tourists.
- Setup a business infrastructure to provide currency exchange business to cater to parents who want to send their kids to foreign countries.
- And, if you meet the foreign trading license requirements, the FFMC license let’s you tap into the foreign exchange business.
Let’s now discuss the eligibility requirement to obtain this money changer license.
Eligibility criteria to become a licensed money changer
In order to get your hands on the currency exchanger license, you have fit criteria set by the Reserve Bank of India. The globalized nature of money changing business compels the RBI to only issue the license to people can actually keep the business afloat while keeping it complaint to the rules.
- Only private limited company or a public limited company can apply for this license online. No individuals are allowed to have the license.
- If the applicant wants to open a single branch of money changing business, he has to have a net worth of 25 lakh rupees.
- If the applicant wants to open multiple branches of currency exchange business, the net worth must be more than 50 lakh rupees.
- The applicant should have any case file against either him/her or any member of their company in the department of revenue intelligence or department of revenue enforcement.
Know that the FFMC license is not valid forever. After 2 years, you’d have to file the application for FFMC license renewal. At that time, the RBI will review your application and your current performance as a money changer to see if you deserve to be renewed.
Process to gain this license from RBI
For RBI, FFMC license is like a scared promise. If you acquire it, you need to follow the procedure to tee. That said, following is the process of gaining this license from RBI:
- Prepare the documents that are deemed necessary to get the license
- Get an FFMC company incorporated with aid of FFMC license consultants
- Add the additional documents to the documentation file
- Fill the application form for FFMC license online. Submit the documents that you’ve collected to the RBI.
- Pay the FFMC license fee in either online or offline mode.
- the RBI will then process your application to see if you’re worthy of the license.
- If the RBI deems you worthy, you’ll surely acquire the license for FFMC in your in box.
Documents needed for FFMC
Following is the list of documents you have to combine to create a file to submit to the RBI:
- Incorporation certificate
- MOA and AOA of the company
- Confidential report from the bank
- Copy of the latest audited balance sheet
- Details of the business’ nature.
In this blog, we have discussed the details of the FFMC license in their most basic details. If you still have any queries reach out to our experts.