{"id":14333,"date":"2020-08-04T17:45:25","date_gmt":"2020-08-04T12:15:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=14333"},"modified":"2020-08-04T18:03:58","modified_gmt":"2020-08-04T12:33:58","slug":"new-ffmc-license-step-by-step-guide","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/","title":{"rendered":"How to avail new FFMC license: Step by step guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">There are many individuals out there who want to engage with the forex trading business for plenty of reasons. The authorized money exchanger, aka AMC, is an RBI-driven entity that provides currency conversion services to the individual coming from abroad. These entities worked under the influence of RBI-guidelines and treated as an <a href=\"https:\/\/corpbiz.io\/ffmc-license\"><strong>FFMC license<\/strong><\/a> holder.  The FFMC is an abbreviation of the term &#8220;Full fledge money changers&#8221;. A Full Fledged Money Changer is RBI-approved organizations that buy foreign exchange from Indians residents and sell the same for the individual visiting abroad for private or business purposes. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"456\" height=\"394\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-12.png\" alt=\"new FFMC license\" class=\"wp-image-14339\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-12.png 456w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-12-300x259.png 300w\" sizes=\"(max-width: 456px) 100vw, 456px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>As Section 10 of the Foreign Exchange Management Act, 1999<\/em><\/strong><sup><a href=\"https:\/\/indiankanoon.org\/doc\/409653\/\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><strong><em> <\/em><\/strong>recommends, AMCs are the only eligible to deal with money-changing actions and renders foreign exchange services. For the reason of overcoming the hassles faced by voyagers &amp; international visitors, specific corporations have been provided the registration dealing in foreign currency notes, coins, and traveler&#8217;s cheques under the RBI&#8217;s guidelines.<\/p>\n\n\n\n<p>One of the most unpleasant aspects of this business is that it can&#8217;t operate in an autonomous framework. It could be a costly affair for someone who tries to run this business without the RBI&#8217;s permission. Adequate knowledge of FFMC norms is compulsory for the individual who wants to pursue the forex trading business. This article will brief you on how to avail new FFMC license legitimately.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/overview-of-ffmc-license-in-india\/\">Guidelines For The FFMC License; A complete Overview<\/a><\/mark><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/#Activities_performed_by_Authorized_money_changers\" >Activities performed by Authorized money changers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/#Eligibility_criteria_to_avail_New_FFMC_License\" >Eligibility criteria to avail New FFMC License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/#Imperative_documentations_to_obtain_new_FFMC_License\" >Imperative documentations to obtain new FFMC License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/#The_process_to_avail_New_FFMC_License\" >The process to avail New FFMC License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/#Key_points_regarding_new_FFMC_license_holders\" >Key points regarding new FFMC license holders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/new-ffmc-license-step-by-step-guide\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Activities_performed_by_Authorized_money_changers\"><\/span>Activities performed by Authorized money changers <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Provide currency\nconversion at the current rate of exchange to the resident and non-residents. <\/li><li>Selling Indian\ncurrency to individuals coming from abroad against the international\ndebit\/credit cards. <\/li><li>Can elaborate the\nscope of work by entering into a franchise agreement to conduct activities such\nas the conversion of coins, travelers&#8217; cheque, and forex trading <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_criteria_to_avail_New_FFMC_License\"><\/span>Eligibility criteria to avail New FFMC License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The company that\naims to pursue money changing activities must be registered under the Registrar\nof Companies (RoCs) under Companies Act. <\/li><li>The MOA of the\ncompany must reflect currency conversion as the main activity. <\/li><li>The company should\nnot engage with criminal cases against the Department of Revenue Intelligence\n&amp; Department of Enforcement.<\/li><li>The applicant aiming\nto avail of a New FFMC License for single or multiple branches must have a net\nowned fund of Rs 25 and 50 lakh, respectively.<\/li><li>The applicant must\ncommence the business activities within six months of the issuance of the FFMC\nlicense. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Imperative_documentations_to_obtain_new_FFMC_License\"><\/span>Imperative documentations to obtain new FFMC License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Commencement\ncertificate and certificate of incorporation of the company. <\/li><li>Past three years\naudit report regarding the balance sheet and Profit &amp; Loss account. <\/li><li>MOA &amp; AOA of the\ncompany reflecting money changing activities as the main business. <\/li><li>RBI-based\nApplication form (annexure-II) renders briefing on money changing activities. <\/li><li>Certificate issued\nby the Statuary Auditors regarding the authorization of owned funds.<\/li><li>The copy of the\nBoard Resolution showing company involvement with the money changing\nactivities. <\/li><li>The confidential\nbank report of the applicant. <\/li><li>Declaration in the\ncontext of the procurement of customer data and Anti-money Laundering in a policy\nframework. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_process_to_avail_New_FFMC_License\"><\/span>The process to avail New FFMC License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The step-by-step processes to avail new FFMC License are as follows:-<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-1 Filing of an Application <\/h3>\n\n\n\n<p>The application for the FFMC license is available on the\nRBI website. The applicant needs to download this application and attached it\nwith the documents as mentioned above. The application shall be submitted to\nthe regional office of RBI. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-2 Fit &amp; Proper Criteria<\/h3>\n\n\n\n<p>Then, RBI would conduct a verification of the firm&#8217;s\nDirector based on &#8220;Fit &amp; Proper Criteria.&#8221; Under this, the\nscrutiny panel of RBI will determine whether the Director of the applicant\ncompany is qualified enough to undertake the business or not. The panel also\nlooks into the legal matter of directors and pinpoints any disparity that might\nconflict with the RBI&#8217;s provisions. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-3 Candidature valuation by Empowered\nCommittee<\/h3>\n\n\n\n<p>The empowered committee would analyze the applicant&#8217;s\ndocumentation and renders their approval once they are satisfied. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-4 RBI approval<\/h3>\n\n\n\n<p>After completing the above steps, RBI might grant their\napproval to the applicant to conduct foreign exchange business. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-5 Submitting additional licenses<\/h3>\n\n\n\n<p>After raising the license from RBI, the applicant is not permitted to initiate the business activities unless he\/she submits the documents such as Lease Agreement, <a href=\"https:\/\/corpbiz.io\/shop-establishment-license\"><strong>Shop &amp; Establishment License<\/strong><\/a>, or property paper to the relevant authority. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step-6 Initiation of the business<\/h3>\n\n\n\n<p>After submitting the post-license documents, the company must initiate its business activities in the timespan of 6 months from the date on which the license was issued. The applicant must inform the authority before undertaking the business activities. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_points_regarding_new_FFMC_license_holders\"><\/span>Key points regarding new FFMC license holders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>New FFMC license\nholders should commence their operations within six months as soon as they\navail permission from RBI.<\/li><li>An application for\nrenewal of the FFMC license should be made before one month of the expiry data.\nThe restoration of the license is not possible after the expiration of the\nlicense. <\/li><li>&nbsp;The application for a new FFMC license is\nfiled along with mandatory documents to the RBI&#8217;s foreign exchange department. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All the FFMC license holders need to run their business as per the provision of the law. If anybody tries to override these guidelines for profit, then it would be treated as a felony. Hopefully, by now, everything has been cleared to you regarding new FFMC license. Feel free to get in touch with the <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> experts for further clarification on this matter. Our experts can offer unparalleled services to help seekers seeking technical advice on finance and tax. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-types-and-procedure-of-ffmc-license-india\/\">An Outlook on Benefits, Types and Procedure of FFMC License<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many individuals out there who want to engage with the forex trading business for plenty of reasons. The authorized money exchanger, aka AMC, is an RBI-driven entity that provides currency conversion services to the individual coming from abroad. These entities worked under the influence of RBI-guidelines and treated as an FFMC license holder. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":14335,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[217],"tags":[840],"acf":{"service_id":"55"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":6473,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14333"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=14333"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14333\/revisions"}],"predecessor-version":[{"id":14342,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14333\/revisions\/14342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/14335"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=14333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=14333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=14333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}