October 2, By Victorino Abrugar 4 Comments. It caters a wide market composed of tourists from other countries who need our local currency to do transactions in our country, Filipinos who are travelling abroad and need to exchange their pesos to foreign currency to use abroad, OFWs Overseas Filipino Workers who need to exchange their foreign currency remittances to pesos, online business owners and professionals who serve foreign clients and earn US dollars, importers who need foreign currency for their foreign purchase or imports, and other customers who need to exchange foreign currency units to our local currency unit, and vice versa.

If you are planning or is interested in this business opportunity, here is a guide on how to start and register a money changer business in the Philippines. They are subject to the provisions of R. The registration and regulation of money changers are outlined in the BSP Circular No. Please read the discussion on registration and licensing below. It is important to choose the right location for this kind of business. The following are important things to consider in choosing the best location for your money changer business:.

It should be easily accessible by your targeted customers. You should consider if that location is easily reachable by your customers, who might be OFWs, tourists and other potential clients.

Consider the cost of space.

If you are renting a place or space, you also have to consider the cost of rent or lease. It should be in a secure place or area. Money changers are handling financial transactions and keeping large amount of cash on their custody which may be prone to theft and robbery. Thus a secure place and area is a must. You also have to consider the number of money changer businesses that are operating in that particular area to ensure that you will be gaining a favorable share of the market.

Unlike banks, financing companies, and pawnshops which are involved in lending or granting loans to consumers and are required an initial minimum amount of capital to be established, there is no initial minimum capital required by the BSP to start a money changer business.

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However, since money changing deals on active cash transactions, one who wishes to start this kind of business should have at least a minimum of Php, of initial capital, excluding the money that will be spent on space improvements, furnishings and equipment.

Therefore, if you want to serve more customers, you have to invest a bigger amount of capital to run your business. A money changer can be formed as a single proprietorship, partnership or corporation type of business.

A proprietorship business should register its business trade name with the Department of Trade and Industry DTI , while partnerships and corporations are required to be registered with the Security and Exchange Commission SEC.

The succeeding discussion will give you an idea on how to register a money changer business in the Philippines. Like other types of businesses, a money changer business should be registered with the different government offices where it is required to be registered.

Proprietorship should be registered with the DTI, while partnerships and corporation should secure a certificate of registration from the SEC. And since money changers and foreign currency dealers are making transactions with financial consumers, they are also required to be registered with the Bangko Sentral ng Pilipinas BSP.

And more importantly, they must be registered with the Bureau of Internal Revenue BIR to comply with their tax duties and obligations. You may read the following guidelines for registering a business with the different government offices in the Philippines:. For the registration of money changers or foreign exchange dealers with the BSP, here are the documentary requirements:.

How to open a "Money Changer" business?

Copy of certificate of Registration duly authenticated by the Department of Trade and Industry for single proprietorship ;. Notarized Deed of Undertaking Annex B to strictly comply with the requirements of all relevant laws, rules and regulations, signed either by the owner, partner, president or officer of equivalent rank;.

Two 2 copies passport size pictures and Xerox copy of one 1 valid ID with picture and signature of the proprietor or the officer duly authorized by the Board of Directors or Partners;.

For more details on the registration of money changers with the BSP, you can contact or visit them at the following:. Bangko Sentral ng Pilipinas A. Bangko Sentral ng Pilipinas BSP. This article was written and published for informational use only and is not provided to serve as legal, tax, or investment advice. Furthermore, new and subsequent laws, regulations, issuances, and rulings related to the topic that will occur in the future may render the whole or part of the article obsolete or inaccurate.

We do not guarantee and is not liable for the accuracy or completeness of any information provided herein or in any outcome as a result for using this information. Victorino Abrugar is a business consultant, blogger, speaker and entrepreneur.

He's the founder of Optixor, Inc. Follow him on Twitter at viclogic. Business Startup Tagged With: November 17, at 1: October 23, at 4: November 30, at 4: KEHAVA RAO R K says.

June 21, at 8: Required to know the software which is in use at Philippines by existing money changers for exchanging money. Regards Keshava Rao R K Weizmann Forex Limited, Bengaluru, Karnataka, India.

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Comments julien says November 17, at 1: I am an investor in this company. The money changer software which is useful in Philippines.

Kindly let me know the further details in this regard. Leave a Reply Cancel reply Your email address will not be published. Like Us on Facebook BusinessTips.

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