Deep Dive Into The Application Form For Ffmc License

By Author: Jatin Rohatgi
Total Articles: 4
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In this world where globalization permeates through every trade, you can’t wait to get your business started. And when the business is about Forex trading and other similarly lucrative business opportunities, you need to get the FFMC License as soon as possible. However, before you get too excited, you should know a bit or two about the Money Changing business.
Money Changing Business or currency exchange business requires the authorization of the Reserve Bank of India. For the FFMC License or FFMC authorization, the RBI has setup a very specific application form that you need to fill out properly if you want a shot at the license.
That’s why, through this blog, we are going to take a deep dive into the details that you have to fill out in the FFMC License Application form.
Details of the FFMC License application form
Applicant’s Full Name: The very first thing that you have to fill out is your name. Don’t use block letters. Don’t make any spelling mistake. Just fill out your name as cleanly as you possibly can.
Address ...
... Details: Provide your residential address, right down the street you live in and the house you reside in.
Business Location: Fill in the name of the location where you want to pursue your full-fledged money changer business. Depending on the state, you might need the authorization from the shops and establishment act. If that’s the case, enclose the supported licenses.
Company Details: In this section, you’ll fill our two details:
Date of when your company was established
And, a list that has all the details and contact information of the directors of that company.
Certificate of Incorporation: Here, you’ll fill in the CIN of the company. Along with it, you’ll provide a copy of Certificate of incorporation of the company.
Commencement of Business: Provide the detail of when your money changing business will start. To support this information, provide the certificate of commencement of business.
Memorandum of Association: It’s not a detail that you have to fill, it’s the document that you have to provide. Along with a copy of Memorandum of Association, provide the clause that you are taking up Money changing business in a separate sheet.
Your Net-owned funds: Provide the detail of your net owned funds (for single branch at least INR 25,00,000/- and for multiple branches at least INR 50,00,000/-). Along with this information, provide the latest audited balance sheet and the Net Owned Funds Certificate signed by the Auditor to certify that you indeed have the mentioned net owned funds.
Confidential report: To further prove your net owned fund’s worth, provide a confidential report that you’ll get from your bank in which you’ve submitted the amount.
Declaration: Provide and sign a declaration that there are no criminal cases against any directors of your company by any law enforcement agencies. Also declare that there are no pending investigations on the directors of your company in those agencies.
Undertaking: Provide an undertaking that every single one in your staff is fully competent at their jobs.
Details of the persons authorized for foreign exchange business: Provide a sheet that list the details of the person or persons that you’ve authorized to deal with foreign exchange business.
Description of your business: Money changing business are of various types. Thus, provide a brief description of the business type that you do.
Prior FFMC Application details: If it’s not a first time of you filing the FFMC License application, provide the details of the same. Through it, RBI ensures that the reasons that your previous application was rejected was not because of some unfair means.
Particulars to support the application: Provide any other documents that you FEEL is necessary to support your case of getting the FFMC license.
Conclusion
There are only 154 details that Reserve Bank of India requires for you to file to grant you FFMC License. However, most get stumped at providing these simple pieces of information. It’s nothing to be ashamed of. So, if you feel like you’re stumped at any detail you need to fill out or the documents that you require, Registrationwala’s door are left open for you. Just walk in, provide us your info and leave with assurance that you’ll obtain the FFMC License.