Securing NBFC registration in India is a process undertaken by companies registered under the Companies Act, 2013, overseen by the RBI as per the RBI Act, 1934. NBFCs hold a crucial position in the Indian economy, facilitating financial operations and stepping in to fulfil banking needs when traditional banks fall short in extending loans and advances.
Moreover, non-banking financial corporation (NBFC) banks are predominantly involved in accepting deposits as per the prescribed schemes and arrangements. Depositors have the option to contribute either in a lump sum or through instalments.
Advantages of NBFC Registration:
1. Low Cost
2. Easy Recovery of Loan
3. Industry Growth Rate
4. Easy Registration
Documents required for NBFC Business
- The company’s management system details information along with the company’s brochure.
- Copy of PAN card or the CIN (Corporate Identity Number) of an Applicant
- Documents of Applicant Company Address and location.
- MOA (Memorandum of Association) and AOA (Article of Association) certified copy.
- Duly Signed List of Directors by each Director of a Company
- Submission of Company’s Director CIBIL scores or credit reports.
- A statement copy of the board resolution stating that the concerned company is not engaged in financial services and won’t unless an NBFC registration is issued.
- A certificate stating that a company is not holding any kind of public deposit issued from the concerned authority and also not accepting the same.
- A copy of the company’s board resolution shows that the applicant company is complying with the Fair Practices code in its business operations.
- A document showing the applicant’s company NOF or Net owned fund.
Procedure of NBFC Registration
The list of steps involved in the application for NBFC Registration is given below.
- An applicant company must be registered according to the Companies Act 2013.
- A minimum of 10 crores of net-owned funds has to be arranged to obtain an NBFC license.
- Applicant must deposit a minimum net-owned fund of Rs.10 crore fixed deposit with any Nationalised bank.
- Applicants for any foreign investment must comply with the Foreign Exchange Management.
- After complying with these requirements, an applicant needs to arrange a necessary document.
- After arranging the documents, submit them along with the FD receipt to the RBI or Reserve Bank of India.
- Moreover, the applicant shall also file an online application by visiting the official website of the RBI.
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