Getting FFMC License online is a requirement for those who want to start a Full-Fledged Money Changer business.
Reserve Bank of India is the one responsible for issuing this license. However, in order to obtain the license, you have to keep two things in mind.
- You have the meet the eligibility criteria for the FFMC License
- You have to meet the documentation criteria
Thus, in this article, we are going to look at both of these checklists so that you may understand the deeper FFMC license meaning.
Eligibility Checklist for FFMC License
Following checklist consists of rules that you have to adhere in order to make RBI see you as someone worthy of filing the application of Full-Fledged Money Changer License:
- Company Incorporation
- Your business of FFMC should be incorporated as a company. While there are was a time when you could have applied for the license even as a sole proprietor, Reserve Bank of India has now become stricter about who it issues the license to.
- Minimum NOF Requirements
- If you want to open a single branch of FFMC business, you need to have NOF (Net Owned Funds) of at least INR 25 Lakh.
- If you want to open multiple branches of FFMC business, you need to have NOF (Net Owned Funds) of at least INR 50 Lakh.
- Memorandum of Association:
- Running a Full-Fledged money changer business is an exclusive one i.e. once you start, you won’t be allowed to use the same company to do anything else. Thus, your Memorandum of Association should reflect that you do money changing activities through your business entity.
- No Criminal Record:
- The applicant company should not have any pending case against it in the Department of Enforcement or Department of Revenue Intelligence.
- Six months to open the operation:
- You should implement your FFMC business plan enough before filing the application that you can start your business within six months of getting the FFMC license.
Document checklist to obtain FFMC License
Following is the document checklist to be submitted alongside the duly filled application for FFMC license:
- A certified copy of Certificate of incorporation
- A certified copy of Memorandum of Association
- A certified copy of Articles of Association
- A CA certified copy of the latest balance sheets
- A CA certified copy of Net worth certificate of your company.
- A CA certified copy of the profit and loss account.
- A confidential agreement from the bank in which your company has an account.
- A document that contains the description of the type of FFMC business you do.
- A certified copy of the board resolution passed so that you can carry our money changing activities through your company.
- A signed copy of the receipt of FFMC license fees.
If you’re not eligible for the license, the RBI will put your application into the shredded. If you’re vigilant when it comes to providing all the documents, the RBI will send you a notice. In any case, if you don’t your Full-fledged business dreams do be delayed, you better contact an FFMC License consultant.