An FFMC License allows you to establish a Full Fledged Money Changer business. However, in order to get it, the Reserve Bank of India, the authority responsible for issuing this license, have to consider you worthy.
What does it take to get the FFMC license online? In this article, we are going to discuss the essential eligibility criteria to obtain the license and tell you about the document that will allow you to prove them.
Eligibility Criteria for FFMC license: What makes you worthy of the license
FFMC license, full form, the license to start a Full Fledged Money Changing business is not just a mandatory requirement, it’s a prize. A prize that you can only win if you can even enter the competition to get it. Thus, the reserve bank of India has setup the following criteria for the FFMC license:
- Only a company can apply for the license: Running a money changing business requires finesse, manpower and most importantly organization – all of which are not accessible to you as an individual. That’s why, you have to incorporate your company before you apply for the FFMC license.
- Money changing as the business objective: The company that you incorporate should have the objective of providing money changing facilities to the customers, and nothing else. If you try to diverse from it, RBI would cancel your FFMC license.
- Net worth requirement: IF you want to start a single Full Fledged Money Changing business, you need to have net owned funds worth INR 25 Lakh at least. If you are interested in expansion and thus want to open multiple branches, your net worth should be at least INR 50 Lakh.
- No criminal cases: There should be no criminal cases pending against you or your co-directors in either the Department of Revenue Intelligence or the Department of Enforcement.
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Documents required to provide that you fit the eligibility criteria
Following are the documents you have to submit along with the application and the receipt of FFMC license fees that you match the above criteria:
- Certificate of Incorporation provides that you have established your money changing business into a company.
- Memorandum of Association shows the RBI that the objective of your company is to providing money changing services only
- Audited balance sheet and net worth certificate, once signed by the proper and practicing Chartered Accountant, shows the RBI that you can afford to run a money changing business
- Signed and stamped declarations are legal documents that show the RBI that you have a clean record.
We can help you become eligible for the FFMC license
From starting a company to creating an audited balance sheet, these are the tasks that you can only complete if you have an in-house chartered accountant. Even then, you’d need to do a fair bit of legwork and reach out to the RBI to complete the rest of the process. That’s where FFMC license consultant can step in to assist you. Thus, if you require any assistance in FFMC license renewal or application filing of a new license, reach out to us.
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In this blog, you’ll know about the FFMC license eligibility criteria and the documents required to prove them. For more information in this regard, reach out to us.