FFMC license is issued by the Reserve bank of India. Acquiring it makes you a Full Fledged Money Changer – giving you the authority to do business in currency exchange. Due to India’s popularity among the masses, currency exchange is a business that’s most sought after. So, if you’re planning to start a business in a sort of international domain, you must know the steps to obtain that license.
Thankfully, there are only 5 steps that you’re required to take.
Get funding to meet the net worth requirements
When you’re applying for the FFMC license, you must realize that RBI doesn’t issue the license to just anyone. Financial stability in the applicants is just a few of things that it seeks – the bare minimum. That’s why, your first task is to raise capital as per the following details:
- If you wish to start a single branch of money changing centre, you must raise 25 lakh rupees.
- If you seek to open multiple branches of your of FFMC business, you must raise 50 lakh rupees.
These amounts aren’t that small. That’s why, we recommend any one who seeks to become an FFMC get startup registration certificate after the next step.
Incorporate your business
Whether or not you’ve managed to get the necessary funds, registering a company is something you can never ignore. Reserve Bank of India, as per the regulations, only allows private limited company, a public limited company or a limited liability partnership to apply for the FFMC license.
Therefore, register your business idea of a money changer into a private limited company. Why this? It’s the most popular form of business entity in India and even if you have no initial capital, you can incorporate it.
Now, at this stage if you weren’t able to manage to raise your net worth, you should opt for startup registration. The process is quite simple. And once you complete it, your “ money changing startup” will be eligible for government subsidiaries. They are some things you can easily leverage to get the funds necessary to meet the net worth.
Gather the required documents
Naturally, the RBI won’t admit your application if you don’t also submit the required documents. For a business as nuanced as an FFMC , following are the documents you require:
- Certificate of incorporation
- Memorandum of association
- Articles of Association
- Description of your business
- Net worth certificate
- Audited balance sheets
- Declaration that you or your co-directors are not convicted of any wrongdoing by Department of revenue intelligence or department of enforcement.
File the application form
After accumulating the above documents, start filing the online application via the RBI portal. If you don’t think that you’d be able to precisely enter the details, you can ask an FFMC license consultant to help you.
Once the application is filed, RBI starts the assessment process. If during the proceedings, it’s found that some of the details are missing from your application, or the documents don’t match, you’ll receive a notification. You’d have a set number of days from the date of receiving the notification to fix any of the issues. If you don’t, your application will be rejected. If you do, the next step happens.
Grant of the FFMC license
Provided that you’ve taken all the steps until this point correctly, and have paid the right FFMC license fees, chances are slim of your application facing any rejection. The Reserve Bank of India loves thoroughness. So, if you’ve taken all the steps correctly, fixed any issues that RBI revealed to you, and have been overall a compliant applicant, RBI will issue you the FFMC license in India.
The five steps that this blog mentions aren’t anywhere near as simple as we are making them out to be. Thus, if you wish to get assistance, call us. In addition to providing you the details, our experts will also provide you post licensing services, like FFMC license renewal.
You can obtain FFMC license in India with these five steps. They aren’t easy to follow, but our FFMC license consultant would be there to follow along with you.