The move strengthens the core management team of the UK's largest agency, and will see Ramzan build on her existing role working alongside Michael Baulk, the agency's chairman, the chief executive, Cilla Snowball, and the executive creative director, Peter Souter.
The agency has been grooming Ramzan to take on a more senior role in its next generation of management after appointing her as the deputy managing director one year ago. The announcement was made at a celebration to mark AMV's 25th birthday last week.
Ramzan, a long-time AMV staffer, has been at the agency for 12 years.
She joined in 1990 from Burkitt Weinreich Bryant to work on Sainsbury's and the Red Cross.
After five years, she became board account director, with the responsibility of running the agency's Sainsbury's and British Telecom business.
In 2000, she co-founded the BBDO telecoms hub, which uses the agency's telecoms, retail and financial experience to help other BBDO agencies. She then became the head of client services, replacing Snowball who became managing director following Andrew Robertson's move to BBDO New York. Ramzan ran account management for three years.
She was promoted to deputy managing director soon after returning from maternity leave in 2001. Clive Tanqueray, who had care-taken the position in her absence, succeeded her as the head of client services.
Snowball said: "At a moment when we are celebrating AMV's past, present and future, it is absolutely fitting that Farah become the managing director. She is an energetic, brave and bright leader who believes passionately in AMV."
The agency recently won Norwich Union Direct and London Tourist Board, having failed to convert a number of pitches in recent months.