NBFC Registration

NBFCs play a significant role in executing the financial functions for investors and Start-ups. Obtain NBFC registration as per the provisions of the Companies Act 2013 and the RBI Act, 1934

Benefits of Registration under NBFC:

  • Service Provider for Securing NBFC incorporation
  • Assistance in Developing NBFC Business Plan
  • Advisory on Business and Marketing Strategy
  • Assistance in meeting RBI Compliance
  • Support for Audit and Secretarial Compliance
  • Guidance on Digital Financial Services Marketing

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Definition
PROCEDURE
documents
FAQ’S

Non-Banking Financial Company (NBFC) is a financial institute offering specific services similar to banks without holding a bank license to individuals, entrepreneurs, and organizations. Being a company,registered under companies Act, 1956 NBFCs are not exactly same as Cooperative and Commercial Banks. NBFC operate as per the rules and regulations of RBI and deals in the business of leasing, loans, shares and securities etc. Although NBFCs are not banks but are a similar financial institution performing lending tasks.


NBFCs offer secured and unsecured loans and industrial and commercial loans, leasing, chit fund business, investment funds, insurance, Currency Exchange & capital markets like stocks, debentures, bonds, and many other similar activities. NBFCs contribute a lot in credit disbursals for retail and MSME market in the country. Two departments of RBI are established for efficient administration and smooth operation of NBFC.

Procedure of NBFC Registration

Establish Company

Register the company with at least 1 director in the company. Minimum net capital should be Rs. 2 crore or more with a good CIBIL score.

Document Submission

Submit all the required documents along with the application form.

Send to RBI

Send hard copy of submitted application form along with documents to the regional branch of RBI.

Grant of Certificate

If all terms and conditions checked and verified, the License is granted to the company.

Documents Required for NBFC Registration

  • Certificate of Company Incorporation.
  • Brochure of the company having detailed information about the management.
  • Copy of company PAN or Corporate Identity Number (CIN)
  • Documents of Company office location or address
  • Certified copy of MOA and AOA.
  • All Directors’ profile duly signed by each director
  • CIBIL credit reports of all the Directors of the Company
  • Statutory auditor Certificate issued stating that the company is not holding the public deposit
  • Copy of the board resolution certifying that the company has not carried out or stopped NBFC activity and will not carry any until the registration from RBI is granted.
  • Certificate specifying owned funds by the Statutory Auditor
  • Company bank account, balances, loans, credits information documents.
  • Audited balance sheet and profit and loss statement of last three years If applicable,
  • Self-attested copy of the bank statement and Income Tax Returns.
  • Information describing the company’s future plan, balance sheets projection, etc. for the next 3 years.



Benefits of NBFC Registration

Frequently Asked Questions (FAQ)

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NBFC or Non-Banking Financial Company is established under the Companies Act in India. It is involved in the business of providing loans and advances to the public. An NBFC company may acquire shares, stocks, bonds, debentures, and securities from the government or the local authorities and can be engaged in insurance business, leasing and chit fund business. An NBFC Company accepts deposits, in different plans and arrangements.

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Any business willing to begin activities of non-banking financial nature as defined under the RBI Act should conform to: Should be a company incorporated u/s 3 of the Companies Act, 1956 or 2013, Should fulfill the requirement of minimum Rs. 2 crore Net Owned Fund.

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NBFCs provide loans and make investments. This character is the same as that of banks. However, there are some differences: NBFCs cannot accept deposits payable on demand, They are not part of the payment and settlement system and cannot issue cheques drawn on itself, The facility of Deposit Insurance and Credit Guarantee Corporation is not available to the investors of NBFCs.

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RBI has the power to register, lay down policy & provisions, issue directions, regulate, supervise, inspect, and exercise surveillance over NBFCs. It can punish NBFCs for infringing the provisions of the RBI Act or directions/orders issued under it.

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Only the NBFCs which have taken specific permission from RBI to do so, are allowed to accept/hold public deposits. To get permitted by RBI, they must have an investment-grade rating to a limit of 1.5 times of its Net Owned Fund.

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