{"id":6841,"date":"2021-07-14T10:28:54","date_gmt":"2021-07-14T10:28:54","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=6841"},"modified":"2021-07-14T10:28:57","modified_gmt":"2021-07-14T10:28:57","slug":"documents-required-for-ffmc-license-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/","title":{"rendered":"What are the Vital Documents Required for FFMC License in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Before we go through all the essential documents required for FFMC License, it is vital for you to understand the meaning of FFMC. An FFMC stand for Full Fledged Money Changer is cited as certified money changers incorporated under the <strong><em>Foreign Exchange Management Act<\/em><\/strong>. It generally delivers services regarding foreign security and foreign exchange. As per the Foreign Exchange Management Act, any company that aims to start an FFMC business required to get an FFMC Registration from the Reserve Bank of India (RBI). Otherwise, the company will deal with strict penalties as prescribed under the Foreign Exchange Management Act. Scroll down to check more information concerning the vital documents required for FFMC License in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3779951c940\" class=\"ez-toc-cssicon-toggle-label\"><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><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3779951c940\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/#Performing_Structure_for_FFMC_Registration_in_India\" title=\"Performing\nStructure for FFMC Registration in India\">Performing\nStructure for FFMC Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/#RBI_Guidelines_for_the_Issuance_of_FFMC_License\" title=\"RBI Guidelines\nfor the Issuance of FFMC License\">RBI Guidelines\nfor the Issuance of 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:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/#Essential_Documents_Required_for_FFMC_License_in_India\" title=\"Essential Documents Required for FFMC License in India\">Essential Documents Required for FFMC License in 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:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/#What_are_the_Significant_Points_Concerning_the_Documents_Required_for_FMMC_License_in_India\" title=\"What are the Significant Points Concerning the Documents Required for FMMC License in India?\">What are the Significant Points Concerning the Documents Required for FMMC License in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/#Activities_Executed_by_FFMC_in_India\" title=\"Activities\nExecuted by FFMC in India\">Activities\nExecuted by FFMC in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/documents-required-for-ffmc-license-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Performing_Structure_for_FFMC_Registration_in_India\"><\/span>Performing\nStructure for FFMC Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FFMC\nRegistration is a type of official permission that allows the companies to\nundertake the forex currency exchange business or money changing activities.\nAccording to the FEMA Act (Section 10 (1)), 1999, AMC (Authorised Money\nChangers are the companies incorporated under the Reserve Bank of India. Such\nAMCs are also regarded as the Full Fledged Money Changers. Performing the law\nframework is the most challenging task for the Non-Banking Financial Company.\nAccording to the above-mentioned law, no companies are eligible to undertake\nthe business for forex currency exchange in the absence of an appropriate FFMC\nLicense.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBI_Guidelines_for_the_Issuance_of_FFMC_License\"><\/span>RBI Guidelines\nfor the Issuance of FFMC License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the conditions that should be fulfilled while applying for <strong><a href=\"https:\/\/swaritadvisors.com\/ffmc-license\" class=\"text-primary\">FFMC License in India<\/a><\/strong>:<\/p>\n\n\n\n<ol><li>The candidate should be a company which is registered under the <strong>Companies Act, 1956<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/Companies_Act_1956_13jun2011.pdf\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup> or 2013;<\/li><li>The NOF (Net Owned Fund) of an entity should be as follows:<\/li><li>One branch FFMC: Minimum Rs. 25 lakh.<\/li><li>Multiple FFMC Branch: Minimum or at least Rs. 50 lakh.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Essential_Documents_Required_for_FFMC_License_in_India\"><\/span>Essential Documents Required for FFMC License in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some vital documents required for FFMC License:<\/p>\n\n\n\n<ol><li>Submit a copy of COR\n(Certificate of Registration) &amp; Certificate of Beginning of Company\u2019s\nbusiness;<\/li><li>Submit a sealed report prepared\nby the banker of the candidate;<\/li><li>Submit MOA (Memorandum of\nAssociation) and AOA (Articles of Association) of the company telling the rules\nfor executing money changing tasks or a proper modification with the similar\neffect;<\/li><li>A declaration declaring that no\nlegitimate proceeding is pending against the company commenced by the DoE\n(Directorate of Enforcement) or DRI (Directorate of Revenue Intelligence) or\nany other legal bodies;<\/li><li>Submit the copies of the\naudited balance sheet and Profit &amp; Loss Account of the company for the\nprevious three years prior to the application date for the license;<\/li><li>Submit a Board Resolution copy\nfor executing forex trading activities in India;<\/li><li>A declaration indicating that\nthe company has deployed the significant policies concerning Combating the\nFinancing of Terrorism (CFT) or Know Your Customer (KYC) or Anti-Money Laundering\n(AML) before commencing the business-related activities.<\/li><\/ol>\n\n\n\n<p><strong>Important Note on Arrangement\nof Documents Required for FFMC License in India<\/strong><\/p>\n\n\n\n<p>A\ncandidate looking for NBFC Registration should arrange and prepare all the\ndocuments as mentioned above in this blog without any discrepancies. Once you\narrange all the documents required for FFMC License, and then the candidate\nwill have to submit a complete application for FFMC Registration to the\nregional office of the Reserve Bank of India. Always remember that the\ndocuments mentioned above will go to the office along with the application.\nOnce the RBI receives the application, they will examine the same of the\ncandidate and the director on the basis of the correct and fit criteria. If\nthey fail to fulfil the criteria, then the RBI will decline the registration\napplication. But, if the application has consented on the off chance, then the\nReserve Bank of India will issue the COR (Certificate of Registration) within 2\nto 3 months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Significant_Points_Concerning_the_Documents_Required_for_FMMC_License_in_India\"><\/span>What are the Significant Points Concerning the Documents Required for FMMC License in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>AOA (Articles of Association)\nis a statutory document that presents the purpose of the company and its\nregulations concerning its operations. The documents indicate how the operation\nor activity should be carried out within the company, comprising the handling\n&amp; drafting of the financial records;<\/li><li>MOA (Memorandum of Association)\nshows the organisation&#8217;s licence. It is a legitimate document that is drafted\nat the time of the initial stage of the company to show its bonding with the\nshareholders, and it is displayed the objectives for which the organisation has\nbeen established. The working protocols of the company cannot go far the vision\nof the MOA;<\/li><li>A Board Resolution is a\ndocumented edition of the decision takes by the Board of Directors of a\ncompany. All the vital decisions made by the Board of Directors of a company\nare authorised bypassing the resolution.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Activities_Executed_by_FFMC_in_India\"><\/span>Activities\nExecuted by FFMC in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FFMCs\nare accountable to execute the following tasks:<\/p>\n\n\n\n<ol><li>FFMCs and their franchisees are\nresponsible for purchasing traveller&#8217;s&nbsp;\ncoins, cheques, or notes from the non-resident and resident;<\/li><li>Full Fledge Money Changes can go\nfor the franchise agreement to undertake the business of restricted money\nexchange like the conversion of overseas currency notes into national or\ndomestic currency at their ease for undertaking the limited money changing\nbusiness which includes the conversion of traveller\u2019s coins, or cheques, foreign\nnotes into Indian Rupees;<\/li><li>An FFMC is allowed to sell\noverseas exchange for the intentions like Private or Business visits and Forex\nprepaid card;<\/li><li>Full Fledge Money Change has\npermission to sell national currency to foreign visitors against international\ncredit and debit cards and reply quickly to get the reimbursement through\nnormal banking channels.<\/li><\/ol>\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>The candidate might not face any hurdle in getting the Certificate of Registration if it obeys the information mentioned above correctly. A Non-Banking Financial Company is a form of business that comes with ample legitimate and regulatory compulsions. Companies that aim to pursue such business require taking the part of documentation seriously because the chance of application revocation is quite high here due to rigid compliances. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/benefits-of-ffmc-license-from-rbi\/\">Benefits of FFMC License from RBI: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before we go through all the essential documents required for FFMC License, it is vital for you to understand the meaning of FFMC. An FFMC stand for Full Fledged Money Changer is cited as certified money changers incorporated under the Foreign Exchange Management Act. It generally delivers services regarding foreign security and foreign exchange. As [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":6842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[57],"tags":[752],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6841"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=6841"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6841\/revisions"}],"predecessor-version":[{"id":6850,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/6841\/revisions\/6850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/6842"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=6841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=6841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=6841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}