What is the procedure for FFMC license registration in India?

What is the procedure for FFMC license registration in India?

FFMC or Full Fledged Money Changers are the corporate financial entities that facilitate foreign currency money exchange with the RBI. To register yourself as an FFMC, you must follow the registration procedure suggested by the RBI. In this article, we have detailed to you the entire registration procedure to get the RBI Full Fledged Money Changer FFMC license. Let us look at them one by one.

Steps of FFMC License Registration

1. Check for the existing FFMC license holders

2. Self-Incorporation into a Company

3. Documentation for Company's Incorporation

4. FFMC License Application filing

5. Application submission with the RBI

6. Application Inspection and Grant of FFMC License

Check for the existing FFMC license holders Run a background check on the existing FFMC-licensed money changers. For such purposes, the applicant must see the registered FFMC license list. Scrutinize the list from head to toe. Run a complete research operation on every full-fledged money changer.

By this, the applicant can estimate the financial stability needed to run the FFMC operations after getting the currency exchange license in India.

Self-Incorporation into a Company The applicant must incorporate itself as a Company under the Companies Act of 2013. It must be as per the RBI guidelines.

Required Documentation for Company's Incorporation The applicant must collect and collate the required documents before applying for the FFMC license online. We have enlisted the required documents in the following points documents that you must attach with the RBI FFMC application for the success of a registration process: ● ● ● ● ● ● ●

Certificate of Incorporation of the applicant company Copy of Memorandum of Association Copy of Articles of Association Confidential Report from the Bank Copy of the latest Audited Balanced Sheet Statutory Auditors' Certificate Details of the Applicant’s business

FFMC License Application filing If you have filed other FFMC applications, then submit them with the application. Then, you must file the duly filled Full-Fledged Money Changer license application.

Application submission with the RBI Submit the documents along with the FFMC application to the concerned jurisdictional office at the RBI Liaison Office until the FFMC license is acquired.

Application Inspection and Grant of FFMC License After the application is assessed and verified, the RBI will grant the required FFMC License to the applicant. After gaining such a license, you can start your online money-changing activities.

The RBI requires no application processing fee for the FFMC registration.

What if some issues arise with the FFMC license application?

If the Authority issues some notification to the applicant that something is wrong with the filed application, the applicant must take immediate action to rectify such inconsistencies. The Authority might issue a cancellation notification for FFMC License RBI if the applicant doesn't take the appropriate actions.

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Here, Forex Trading, despite being a part of Full Fledged Money Changer, is different from the Forex Trading License and Forex Broker License. Every FFMC applicant must adhere to the Forex Trading License requirements beyond the scope of the FFMC.

Avoid such calls if you encounter sources claiming to have a money changer license for sale.

Don't fall into such a trap and report such an entity or individual to the Authority.

How to apply for the FFMC License online renewal?

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The FFMC Licensee must apply for the renewal application two months before the FFMC license expiry or the period as the RBI prescribes. If the RBI accepts the FFMC license renewal application, then the FFMC license can continue until its expiry. The RBI can also reject the application. Keep in mind that Apex Bank will not entertain any renewal application after the expiry of the FFMC license.

To know about the FFMC license fees, consult the FFMC license consultant at Registrationwala.