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FFMC License Required for Foreign currency changing business & Forex money changing activity. FFMC License required to be obtain from Reserve Bank of India (RBI).
We are India’s Best RBI FFMC License Consultancy Service Provider.
Only Company Entities can apply for FFMC License to RBI
We are leading RBI License Consultant including FFMC License Consultant in Ahmedabad, India. FFMC – Full Fledge Money Changer License Required to carried out activity of Foreign Currency Conversions. FFMC approved license holder can obtain foreign currency through currency Notes/Coins/ATM cards from foreigner as well as from Indian residents. Further they can sell such foreign currency to person who has business or personal travel requirements.
As per Foreign Exchange Management Act (FEMA) Only Authorised FFMC can give services related to foreign exchange Conversion. Such power delegated to RBI for Issuance of License as per Section 10 of the FEMA. However, There is NO Restriction for Applying for FFMC License other than applicant must be a Company as per Companies Act and Capital of the company is more than 25 Lakhs.
Currently in India, Mostly Tourist Place Hotels, Tourist Place Business, Travel Agents, Foreign Exchange Converter Unit holds FMC License. there is potential growth in the money changing business (FFMC Business) as requirement of travelling and tourism increased by day to day.
The objective of the license is to serve easier foreign exchange conversion facilities to travellers and tourists, including Non Resident Indians (NRIs), by enlarging the network of money changing facilities in the India. Increasing tourist and business visa traffic encourage RBI to promote FFMC and by this RBI expected that the facility of Franchise arrangement will enable AD Category-I banks, ADs Category-II and FFMCs to provide such facilities at all tourist centers and major cities during extended hours and on holidays which is not feasible without issuance of private licenses to perform the money changing activity.
Once FFMC License Grant by Reserve Bank of India, there are Certain Compliance to be followed by License holder Before starting FFMC Money Changing Business and During the License Holding Period. Such Compliance are as
1. Copy of Business Commencement Details Required to submit in RBI with Necessary License and Registration
2. Certified Copy of Business Commencement ROC INC 20A Form.
3. Professional Tax Registration / Shop act License as applicable.
4. GST Registration Certificate (if Applicable)
5. Copy of Municipal Tax Bill / Rent Receipt / Lease agreement
6. FFMC Must Follow all Circular Notified by RBI on time to time basis.
7. On Each Place of Business FFMC Holder Should Keep Foreign Money Changer License Copy
8. FFMC Required to Submit Annual Financial Statement with Statutory Audit Report at RBI Regional Office
9. FFMC Must Deploy Con-current Audit System at Business place for all FFMC Transactions
10. Register and Records to be Maintain over and above other law requirement
11. Daily Register of Balance of Foreign Currency in form FLM-1
12. Daily Summary of Traveller Cheque’s in FLM-2
13. Register of:Purchase of foreign currencies in Form FLM-3.
14. Register containing Purchase of foreign currency from the authorized dealers and the authorized money changers in Form FLM-4.
15. Book of Sale of foreign currency and foreign currency travelers cheque’s in Form FLM-5.
16. Summary of Sale of foreign currency to the authorized dealers / Full Fledged Money Changers banks in Form FLM-6.
16. Traveler cheque’s surrendered to the authorized dealers/person / authorized money changers / export in Form FLM-7.
17. All Books and Registered to be kept up to date and must be cross checked on daily basis.
18. Transactions which is not related to money changing business of the FFMC should not be mixed up with money changing transactions. Thus, the registers and books of account should show clearly the trail of transactions pertaining to money changing business.
19. If FFMC have more than one establishment then separate record required to be maintain for each establishment. Transfer of fund from one unit to another unit must be recorded as stock transfer, Not as sales.
20. FFMC Must Submit FLM-8, Monthly consolidated statement for all its offices in respect of sale and purchase of foreign currency notes in form FLM 8 so as to reach not later than the 10th of the succeeding month.
RBI Grants FFMC License for the period of ONE Year. FFMC License holder must file renewal application before Two Month (60 Days) of expiry of existing license holding period granted by RBI. If any compliance are pending for existing license period then applicant must complete all compliance before filing FFMC Renewal application. RBI will not accept renewal application if any compliance are yet to be filed by applicant. NO Renewal application are allowed after expiry of existing license period. Thus, FFMC License required to be renewed on yearly basis.
Legal ADDA™ India’s Best Consultancy in the field of RBI License. We provide such services across India. Following are regional offices handling FFMC License Approval functions.
Ahmedabad, Mumbai, New Delhi, Bangalore, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kochi, Kolkata, Mumbai, New Delhi, Panaji, Patna.
NO, Only Company as per Companies Act 2013 can apply for RBI FFMC – Full Fledge Money Changer License.
Private Limited Company Registration will Cost around Rs. 25000 and FFMC License will Cost around Rs. 90000. Total Cost for FFMC Business Startup will be Rs. 115000 approx.
Yes, Full Fledge Money Changer can made Franchise Business and appoint agent for restricted activity of Foreign Currency Receiving from Indian and Non Resident. In addition there are hundreds of FFMC Holder have tied up International Hotel Chain, Tourist Place Shop etc. However Minimum Requirement for FFMC Franchise it must have Rs. 10 Lakhs Net Owned Fund, they need to enter into agreement with FFMC. in addition they required to maintain records as per RBI Guidelines.
FFMC License Valid for One Year, Required to Renew Each year by filing Application for renewal.
Yes, in following situation RBI Can Cancel FFMC License with or without prior Intimation for any opportunity of representation.
1. RBI Deems fir that revocation is in public interest.
2. Fails to Submit any required Document or fails to furnish returns.
3. Violation of Provision of act, License Conditions, guidelines.
4. Any other matter where RBI in view that continuation of your license may harm foreign exchange business.
1. Company Incorporation and MOA with FFMC Objects. (Min. Capital 25 Lakhs)
2. RBI-FFMC License
3. Professional Tax Registration
4. Shop Act License
5. GST (if Turnover is more than 40 Lakhs)
6. PF (if employees are more than 20)
FFMC License aaplicant company must have INR 25 Lacs net capital of company for single branch FFMC Registration. For multiple branch FFMC Registration minimum net capital requirement is INR 50 Lacs.
As per RBI Guidelines, Clean Records of Company or its manager or directors is primary requirement. for such Section VIII are as follows:
SECTION VIII
‘Fit and proper’ criteria for directors of FFMC
(a) The Boards of FFMCs should undertake a process of due diligence to determine the suitability of the person for appointment / continuing to hold appointment as a director on the Board, based upon qualification, expertise, track record, integrity and other ‘fit and proper’ criteria. For assessing integrity and suitability, factors like criminal record, if any, financial position, civil action initiated to pursue personal debts, refusal of admission to or expulsion from professional bodies, sanctions imposed by regulators or similar bodies, previous questionable business practices, etc. should be considered. The Board of Directors should assess ‘fit and proper’ status by calling for information by way of self-declaration, verification reports from market, etc. FFMCs should obtain necessary information and declaration from the proposed / existing directors for the purpose as given in the Master direction on Reporting.
(b) The process of due diligence should be undertaken by the FFMCs at the time of appointment / renewal of appointment.
(c) The Boards of the FFMCs should constitute Nomination Committees to scrutinise the declarations.
(d) Based on the information provided in the signed declaration, Nomination Committees should decide on the acceptance or otherwise and may make references, where considered necessary to the appropriate authority / persons, to ensure their compliance with the requirements indicated.
(e) FFMCs should obtain annually as on 31st March a simple declaration that the information already provided has not undergone change and where there is any change, requisite details are furnished by the directors forthwith.
(f) The provisions of Companies Act 2013 shall apply with regard to the age of the candidate. Further, the candidate should not be a Member of Parliament / Member of Legislative Assembly / Member of Legislative Council.
(g) Any change of directors during the year should be reported to the Regional Office concerned of the Foreign Exchange Department, Reserve Bank of India as given in the Master direction on Reporting.
(h) Comments of respective Departments of the Reserve Bank will be obtained on the operations of an applicant who / whose parent organisation is already licenced / authorised by the Reserve Bank.
