If you want to start a business in India, now you have more options than ever. There are businesses that you can start that will provide customers with simple household products. However, at times, the more lucrative market calls for more nuanced services – such as currency exchange. To start a business of currency exchange, you need FFMC license.
But why you should care about FFMC license? What kind of benefits you can gain as a Full Fledged Money Changer?
Read below to find the answers to those questions.
What is an FFMC License?
The Reserve Bank of India issued business registrations under Foreign Exchange Management Act that can allow you to become Authorized Money Dealers. This registration is known as the FFMC license. There are three categories of Authorized Dealers, namely:
- Category !
- Category II,
- And Full Fledged Money Changers – also known as Authorized Money Changers
Category I and Category II is for the banks and the Non Banking Financial institutions. They are established players of the financial field and their resources are vast. A Full Fledged Money Changer however, provide the services at a much smaller scale. For instance, you can setup an FFMC company that looks like a shop, but the services that you’ll provide will be in demand by tourists and Indian nationals alike.
Why you should choose to obtain the FFMC license?
You can find the reason to start an FFMC by analyzing the services you can provide. But let’s provide you something different here. Let’s provide you the hidden benefits that you can avail with the license to exchange currency.
- Owning foreign currency: As an individual, you’re only authorized to carry only a limited amount of foreign currency. FFMC license removes this limitation. As you’re a service provider facilitating currency exchange services, the scale of your business removes ceiling of the foreign currency you can carry. To aid you in your efforts, RBI issues FFMC license so that you can do your business in peace without paying heed to how much money you have the permission to do trade with.
- Providing currency exchange services to the tourists: Becoming a Full Fledged Money Changers holds a special value in India, a country with so many tourists destinations. Considering the world has now opened post-COVID-19, the number of tourists have risen as well. It gives you a venue to make a lot of money within a short span of time as a Full fledged money changer.
- Availing currency exchange services to the Indian nationals: India has gone multinational, and not just on the business front. Indian individuals are interested in going abroad for educational and sometimes, tourism reasons. They need good foreign exchange services and as the holder of FFMC license, you can avail them the same.
- Profits proportional to the foreign exchange rate: If you have noticed, dollars is getting stronger than a rupee with each passing day. It gives you a chance to seriously increase your profits by exchanging dollars for rupees. As your profits are proportional to the current exchange rates, you can tap into maximum profits, even during the time when India struggles to maintain a solid economic ground.
To avail any of these benefits, you need to apply for FFMC license online. For that, you must contact our FFMC license consultants. We can aid you from drafting your documents to filing your application to doing the necessary legwork to ensure that RBI accepts your application.
Starting a Full Fledged Money Changing business is not the one that every single one is capable of. But those who are, have a chance to penetrate a business domain that can provide them lucrative profits directly proportional to the foreign exchange rate. It’s a good business to start, provided that you take care of FFMC license renewal from time to time.