FFMC license online is the process to become a Full Fledged Money Changer by filing the application of The FFMC license and obtaining the said license from the Reserve bank of India. And like any government process, the application is incomplete without the right documents attached to it.
In this article, we are going to look in each and every requirement associated with obtaining RBI FFMC license online.
What’s The Significance of Knowing About The FFMC License Meaning?
FFMC license, full form Full Fledged Money Changer License, is the license to start a business that allows you to provide currency exchange services for profit. In this volatile world, there are two things you can count on:
- Parents aren’t satisfied with their children only attaining something within the country.
- Tourists aren’t satisfied by just walking about one place in India.
The parent’s dissatisfaction with the opportunities available for their children in India has made the same parents opt for sending the children to foreign lands. They need currency exchange services that allows them to do so.
The tourists’ are dissatisfied by just staying at a single place in India. As a result, they are bound to travel everywhere in the country. If there is one facility that they always require, it’s the currency exchange service.
A money changer license is a way to stimulate the economy by providing such services. That’s why, the titular license is also called the Currency Exchange license in certain circles.
Documents Required to Become a Licensed Money Changer in India
The forex trading license requirements or the requirement to become a licensed money changer include many documents. Each and every one of them gives answers to the RBI regarding your business. With that in mind, the following are the documents required along with the explanation as to why you need to provide it:
- Incorporation certificate: Providing money-changing services is a complex business and thus requires only those who can afford the infrastructure to maintain it. Thus, only partnership firms, LLPS and companies are allowed to become money changers.
- Memorandum of Association: It isn’t a side business to provide currency exchange services. Thus, RBI seeks your commitment to the business by asking for the MOA.
- A confidential report of the bank: This confidential report will inform the RBI about your net worth. To open a single branch of FFMC, you need INR 25 lakh. You need double this amount – INR 50 Lakh – to open multiple FFMC branches. This document lets the RBI discern your financial state.
- Audited Balance sheet of your company: Falsified information is always available to download from even online. To prevent that, RBI asks for a genuine balance sheet audited by the Chartered Accountants.
- Details of the business nature: While the business is money changing exclusively, such a business can take on several forms. That’s why, the Reserve Bank of India asks you to explain your business in a clear and concise manner.
- Prior FFMC license application: Whether you have previously filed for the FFMC license in an unsuccessful manner, of you have had an FFMC license but for some reason, it’s not with you anymore. In both these cases, the RBI has the right to know about your past with FFMC.
The receipt of the FFMC license fee, as already integrated with these documents when you’re filing the online application, isn’t needed to be mentioned here.
Whether it’s obtaining the license or fighting the end of validity by filing the application of FFMC license renewal, RBI is extremely stringent about the documents. There is only so much information you can gain from a blog. That’s why, our FFMC license consultants provide you end-to-end services regarding this license. Contact them if you have time.