An FFMC License holds meaning in this world because we now live in a world globalized. Every father is trying to find a way to provide global education for his children and every tourist is now a globe trotter.
One thing that they both need is access to regional currencies. And the one who can provide them with this particular service is a Authorized money changer. An FFMC License is the permit to become an Authorized money changer.
Through this article, we are going to explore the benefits of FFMC license, the eligibility to acquire one, the process one has to go through and the documents it requires to acquire it. So, read on and slowly unveil the most globalized form of business license in India.
What is a Licensed Money Changer?
A licensed money changer is a company that exchanges currencies for its customers. It takes their currency, and then depending on that moment’s exchange rate, provides the currency that those customers require.
FFMC license online is a required authorization to establish yourself as an Authorized or Licensed Money Changer.
What are the benefits of being that part of FFMC license list?
FFMC license full form is Full Fledged Money Changer License. Being the part of this license list becoming a part of a globalized business list that allows you to provide a variety of services to customers from all around the globe. Some of them are as follows:
- Foreign Exchange Services: The Reserve Bank of India allows the authorized money changers to provide foreign exchange services. However, it’s only allowed in certain special circumstances the terms of which can change with each circumstance.
- Accessing money changing services: The nature of the FFMC license might give an impression that the customer base of such a business only consists of foreigners. But that’s not the case. As we said in the introduction, both the national citizens and international tourists are in need of currency exchange services. Thus, an FFMC’s services are accessible to all.
- Buying Services for foreign Currencies: As a non licensed individual, there is a limit to how much foreign currency you can own. That limit is bypassed when you’re a holder of the FFMC license.
- Franchise-ability: There is a special point in this license that allows you to setup multiple branches. However, through franchise-ability, you can open a franchisee of the services.
To earn the above benefits, you need to earn the right to acquire the FFMC license. And that’s where you have to take a look at the eligibility criteria
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What makes one eligible to get FFMC license?
The Reserve bank of India is pretty strict about who to issue the license to. If you don’t fall within the eligibility criteria given below, you won’t be allowed to file the application:
- The requirement of a business entity: Without a proper infrastructure you can’t run a money exchange business. Thus, only a private limited company can apply for FFMC License.
- Single branch capital requirement: To open a single branch of FFMC, the applicant’s net worth must be at least INR 25 Lakhs.
- Multiple branch capital requirement: To open multiple branches of FFMC, the applicant’s net worth should be at least INR 50 Lakhs.
- Requirement of a clean record: The applicant shouldn’t any case pending against them or their employees in Department of Revenue intelligence or Department of Enforcement.
What is the process of acquiring FFMC license?
Obtaining FFMC license is obviously not a piece of cake, even though the process contains of the following steps, you will encounter hiccups along the way:
- Prepare the right set of documents: The documents that Reserve Bank of India needs from you, the applicant, to issue you this license is quite varied. Each document serves the purpose of informing the RBI about your ability run a money changer business.
- Filing the online application: The FFMC license application form can be filed using the online mode. The documents has to be uploaded right then as well.
- Physical copy submission: Just the like the old method of submitting Income Tax Return, you’re required to submit the physical copy of the application after you’ve submitted it online. If you don’t do so within a specified period after filing the online application, your application for FFMC license can be cancelled.
- Beginning of assessment: After the RBI receives your offline application form, it dives into your documents – assessing them thoroughly. If it finds any shortcomings with your application or your application, you’ll get notification of the same. In that notification you’ll also receive the time till which you’re required to fix the issue.
- Acquiring the FFMC license: Once the application has been approved by the RBI, you’ll be issued this license.
The license is not perpetual. You need to file the application for FFMC license renewal after every 5 years. That process also entails online application filing, but you won’t need to provide many documents.
Documents for FFMC license
Along with the receipt of FFMC license fees, following are the documents that to issue this license, the RBI needs:
- COI of the company
- AOA and MOA of the company
- A declaration stating that there are no criminal cases against the applicant
- audited balance sheet of the last 5 years
- Confidential report
- Board resolution Copy
Now you know the benefits of getting the FFMC license, the process of acquiring it, and the documents you need. However, what’s remaining is the consultants who can help you. We are them. Our services are second to none and you’ll only know about it if you let us assist you for once.