{"id":17306,"date":"2020-10-04T11:00:25","date_gmt":"2020-10-04T05:30:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17306"},"modified":"2020-10-03T15:09:02","modified_gmt":"2020-10-03T09:39:02","slug":"explore-the-list-of-documents-required-for-ffmc-license-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/explore-the-list-of-documents-required-for-ffmc-license-in-india\/","title":{"rendered":"Explore the List of Documents Required for FFMC License in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Before we started with the title, it is pretty essential for us to know what FFMC means. Full Fledged Money Changer (FFMC) is referred to as authorized money changers registered under 10 (1) of the Foreign Exchange Management Act. It usually provides services related to foreign security and foreign exchange. According to the aforesaid act, any entity intends to commence an FFMC business required to avail of a registration for the same from the Reserve Bank of India.  Otherwise, the entity will confront severe penalties as prescribed under the Act. In the write up we will demonstrate the information regarding Documents required for FFMC License in India. <\/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\/explore-the-list-of-documents-required-for-ffmc-license-in-india\/#Executing_Framework_for_FFMC_Registration\" >Executing Framework for FFMC Registration<\/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\/explore-the-list-of-documents-required-for-ffmc-license-in-india\/#Documents_required_for_FFMC_license\" >Documents required for 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\/explore-the-list-of-documents-required-for-ffmc-license-in-india\/#Key_points_related_to_Documents_Required_for_FFMC_License_in_India\" >Key points related to Documents Required for FFMC License\nin India<\/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\/explore-the-list-of-documents-required-for-ffmc-license-in-india\/#Activities_Performed_by_FFMC_in_India\" >Activities Performed by FFMC in India&nbsp;<\/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\/explore-the-list-of-documents-required-for-ffmc-license-in-india\/#Conclusions\" >Conclusions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Executing_Framework_for_FFMC_Registration\"><\/span>Executing Framework for FFMC Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FFMC registration is a kind of legal permission that permits the entities to undertake the business of forex currency exchange or money changing activities. As per Section 10 (1) of the FEMA Act (Foreign Exchange Management Act), 1999, Authorized Money Changers (AMC) are the entities registered under the <em><strong>Reserve Bank of India<\/strong><\/em><sup><a href=\"https:\/\/www.rbi.org.in\/\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> (RBI). These Authorized Money Changers are also regarded as Full Fledged Money Changers. Executing within the framework of law is one of the most challenging tasks for the NBFC. As per the aforesaid law, no entities are entitled to undertake the business of forex currency exchange in the absence of a valid <a href=\"https:\/\/corpbiz.io\/ffmc-license\"><strong>FFMC license<\/strong><\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FFMC License classified into Three Categories&nbsp;<\/h3>\n\n\n\n<ul><li>AD Category- I Banks (Authorised Dealer Category \u2013 I Banks)<\/li><li>AD Category- II (Authorised Dealer Category \u2013 II)&nbsp;<\/li><li>Full Fledged Money Changers (FFMCs)<\/li><\/ul>\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\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_FFMC_license\"><\/span>Documents required for FFMC license<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"621\" height=\"340\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-13.png\" alt=\"FFMC license\" class=\"wp-image-17318\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-13.png 621w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-13-300x164.png 300w\" sizes=\"(max-width: 621px) 100vw, 621px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>The following list manifests the documents required for FFMC license<\/em><\/strong><\/p>\n\n\n\n<ul><li>A copy of Certificate of Incorporation (COI) and Certificate of Commencement of Business of the Company.&nbsp;<\/li><li>The MoA (<a href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/\"><strong>Memorandum of Association<\/strong><\/a>) and AoA (Articles of Association) of the company stating the norms for performing money changing tasks or a proper amendment with the same effect.<\/li><li>Copies of the balance sheet (audited) as well as P&amp;L account of the entity for the last 3 years prior to the date of application for the license.&nbsp;<\/li><li>A declaration stating that no legal proceeding is pending against the company initiated by the Directorate of Enforcement (DoE) or Directorate of Revenue Intelligence (DRI) or any other statutory bodies.&nbsp;&nbsp;<\/li><li>A sealed report prepared by the applicant\u2019s banker.&nbsp;<\/li><li>A declaration stating that the entity has deployed the relevant policies regarding CFT (Combating the Financing of Terrorism)\/KYC (Know Your Customer)\/AML (Anti-Money Laundering) before starting the business activities.&nbsp;<\/li><li>Copy of board resolution for performing forex trading activities in India.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Note on Arrangement of Documents <\/h3>\n\n\n\n<p>An applicant seeking <a href=\"https:\/\/corpbiz.io\/nbfc-registration\"><strong>NBFC registration<\/strong><\/a> must arrange the aforesaid documents without any discrepancies. After completing this task, the applicant must submit a comprehensive application regarding FFMC registration to the RBI\u2019s regional office. Keep in mind that the document described above will go along with the application. Upon receiving the application, RBI will evaluate the candidature of the applicant and the director on the basis of the fit and proper criteria. If they fail to meet the said criteria then RBI will reject the application. However, if the application is approved on the off chance then RBI will grant the registration certification within 2 to 3 months.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_points_related_to_Documents_Required_for_FFMC_License_in_India\"><\/span>Key points related to Documents Required for FFMC License\nin India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A Memorandum of Association\n(MoA) manifests the charter of an organization. It is a legal document that is\ndrafted during the initial phase of the company to indicate its bonding with\nshareholders and it\u2019s laid out the objectives for which the organization has\nbeen established. The company\u2019s working protocols cannot go beyond the scope of\nthe Memorandum of Association.<\/li><\/ul>\n\n\n\n<ul><li>The Articles of Association\n(AoA) is a legal document that manifests the company\u2019s purpose and its\nregulations regarding its operations. The documents show how the operation\nshould be carried out within the company, including the drafting and handling\nof the fiscal records.<\/li><\/ul>\n\n\n\n<ul><li>A Board resolution resolution\nis a documented version of the decisions taken by the BOD of a company. All the\nimportant decisions made by BOD are certified bypassing of the resolution.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Activities_Performed_by_FFMC_in_India\"><\/span>Activities Performed by FFMC in India&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>FFMCs are liable to perform the following tasks:&nbsp;<\/strong><\/em><\/p>\n\n\n\n<ul><li>FFMCs can opt for the franchise\nagreement to undertake the business of Restricted Money exchange such as the\nconversion of foreign currency notes into domestic currency at their convenience for undertaking the Restricted Money\nChanging business which comprises the conversion of coins or traveler&#8217;s\ncheques, foreign currency notes into (INR) Indian Rupees.&nbsp;<\/li><li>An FFMC has permission to sell\ndomestic currency to tourists or foreign visitors against the international\ndebit and credit cards and respond promptly to obtain the reimbursement via\nnormal banking channels.&nbsp;<\/li><li>FFMCs as well as their\nfranchises are liable to purchase traveler&#8217;s cheques, coins, or notes from the\nresident and non-resident.&nbsp;<\/li><li>An FFMC is permitted to sell\nforeign exchange for purposes such as Business visit, Private visit, Forex\npre-paid card.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusions\"><\/span>Conclusions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicant might not confront any\nobstacle in obtaining the registration certificate if it follows the aforesaid\ninformation correctly. NBFC is a kind of business that comes with plenty of\nlegal and regulatory obligations. Entities that intend to pursue such business\nneed to take the documentation part seriously because the chance of revocation\nof application is quite high here due to tight compliances. <\/p>\n\n\n\n<p>In order to overcome those hassle, you must not hesitate to confront the professional who can help you out. At <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> you can get the best of the professional-grade advice on different licensing or registration process. The company is engaged with providing legal services like FFMC License, <a href=\"https:\/\/corpbiz.io\/fssai-license\"><strong>FSSAI license<\/strong><\/a>, <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company registration<\/strong><\/a>, <a href=\"https:\/\/corpbiz.io\/trademark-registration\"><strong>trademark registration<\/strong><\/a>, and many more. <\/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\/new-ffmc-license-step-by-step-guide\/\">How to avail new FFMC license: Step by step guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before we started with the title, it is pretty essential for us to know what FFMC means. Full Fledged Money Changer (FFMC) is referred to as authorized money changers registered under 10 (1) of the Foreign Exchange Management Act. It usually provides services related to foreign security and foreign exchange. According to the aforesaid act, [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":17311,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[217],"tags":[1064],"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":6897,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17306"}],"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=17306"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17306\/revisions"}],"predecessor-version":[{"id":17319,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17306\/revisions\/17319"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17311"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}