Starting a Money Changer Business in the Philippines
A money changing business can be very profitable, which is why many venture into this industry. More tourist arrivals, coupled with ever-growing OFW remittances, have made the outlook for this venture brighter. The other increasing markets for money changers are those who plan to travel abroad and businessmen who may have a need to obtain dollars for imports.
To help those who are interested, below are the basic steps in starting a money changer business:
1. Find a safe location nearest your market. It is not enough to simply find a place near plenty of potential customers. You must also consider the security situation since you will be carrying plenty of cash. Due to this, you will see that many money changers situate near police stations in order to deter robbers.
2. Registration requirements for a money changing business. A money changer business can be a sole proprietor, corporation or partnership. Sole proprietors need to register with the Department of Trade and Industry, while corporations and partnerships must go to the Securities and Exchange Commission. You must then get a barangay clearance before proceeding to get a mayor’s permit. Note, however, that you must be registered with the Central Bank, too. One of the Central Bank’s requirements is to attend their Anti-Money Laundering Seminar. After all these, you can finally register with the Bureau of Internal Revenue and have your receipts printed. Later on, you must also apply to the SSS, Pagibig, DOLE and Philhealth.
3. Minimum capital you should have is at least P600,000. For the cash on hand, you may need P500,000 minimum. The capital for the renovation, rental deposits, furnishings and major equipment like the cash vault alone normally exceed P100,000.
4. Have a rapid way of learning the buying and selling prices of different currencies. You make your profit from the difference in value between your buying and selling of currencies, so you must have a way of quickly updating buying and selling prices to avoid losing because of old information. Some visit credible or official websites for information.
5. Have training for you and your staff. While most of the legal procedures will be discussed in the government seminars, like in the Central Bank and BIR, you and your staff must have additional training in operating the money changer. One of the most important things to learn is how to spot counterfeit currency, and proper customer service.
A money changer business can provide a good income as long as the location is good and it is well managed. Want to know more about this promising venture?
BusinessCoach, Inc., a leading business seminar provider, conducts a seminar on How to Start and Operate a Money Changer Business. Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.
Click here to view details of the seminar: How to Start a Money Changer Business »
*Originally published by the Manila Bulletin. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.