Tips to become eligible for the FFMC License

FFMC License allows you to become a full fledged money changer – a business that allows you to deal in foreign currencies. As you can glean from this bit of information, such a license is in high demand. However, courtesy of the strict rules that RBI has imposed on who can and who can’t get the license, there are not many FFMC license holders.

If it’s all about eligibility for the license, you must know how to become one.

Our experts have deeply studies the terms and conditions of starting a Full-fledged money changer business. Leveraging whatever we have learned, we have created some specific tips – tips that we share in this blog.

Register a company right away

Right when it hits you to get an FFMC license, you shouldn’t go online and ask yourself how to get it.

Instead, incorporate your business right away. Reach out to your nearest company registration consultant to start the process. And don’t fret about the procedure, it’s a simple one. All you’d need to do is provide the consultant with the following:

  1. Aadhar card
  2. PAN card of you and your co directors
  3. Capital details
  4. Net worth details

Based on that, the consultant will incorporate your company for you – and that too within a span of a week.

Bootstrap to meet the net worth requirement

Your net worth should be at least 25 lakh rupees to obtain the FFMC license. It’s not a small amount of money. Unfortunately, you need to meet this requirement, by anyway necessary. However, when it comes to the concept of funding, it’s not that much.

25 lakh rupees are manageable if you bootstrap properly. There are many bootstrapping strategies for you to tap into. However, the best one among them is where you bring in your family members into the mix. Ask them to join you in your venture, and ask for investment in return.

If you’re not sure about how to convince them, you can tell them the benefits of Full fledged money changerto change their mind.

Understand all the intricacies of foreign trade

You can’t just get up one day and decide to become a full fledged money changer. It’s a complex business that requires a complex understanding of the foreign trade. Thus, you need to do a fair bit of research before you venture forward and attempt to obtain the FFMC license.

However, we understand that some of the details are way too complex for a beginner. That’s why, the best thing for you to do is to include people in your team who possess all the relevant knowledge about FFMC license.

Including them won’t only help you obtain the FFMC license, but would help you maintain the regulatory standing of your business.

Also read “Obtain FFMC license in India with these 5 steps

Conduct a background analysis of your partners

A business as complex and as trust-centric as money changing requires that you completely trust your co-directors. You need individuals with you who are clever, but not who are criminals.

Reserve Bank of India has specifically stated that if any applicants in the past had cases filed against them in the Department of revenue or department of intelligence, their applications won’t be entertained.

You need to be better. A clean record is the most basic requirement to start a money changing business.

Consult with FFMC experts

Consulting with FFMC experts  of FFMC license consultant is quite important when you’re looking for FFMC license.

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Not only they help you with filing the applications, but they also help you deal with underlying complications that might arrive during the licensing procedure.

One of the essential documents for FFMC license is the cover letter. The more concise it is, the easier becomes for you to convince RBI to grant you the license. FFMC experts can help you draft that letter.

Additionally, once the time arrives when your license dies, consultants would be there to give you FFMC license renewal services.

Conclusion

FFMC license is only issued to those who RBI thinks can ethically, financially and technically run the business in a stable, ethical and economically stimulating manner. Without meeting the eligibility criteria, your application won’t even be given a second look.

But now that you know about those requirements, you can make RBI notice you, and grant you the FFMC license.

Here are the tips to become eligible for the FFMC license. Understand them thoroughly if you wish to obtain FFMC license in due time in India.

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