Online application
An online application is to be made in the prescribed format with regard the demanded documents and enclosures, which generates a company application reference number.
NBFC Registration
NBFC Registration
An NBFC or a Non-Banking, Financial Company is that kind of financial institution which provides various financial and non-financial services to individuals, business enterprises, entrepreneurs, etc. They are different from the Cooperative and Commercial Banks; they do not need to hold a banking license, but must strictly follow the rules and regulations provided by RBI from time to time.NBFCs, most commonly, operate in the field of industrial and commercial loans and advances, deposit’s, leasing, hire-purchasing, investment funds, chit fund business, insurance business, instruments of the capitalist & money markets such as stocks, debentures, bonds, and many other similar activities. India’s financial sector has shown consistent growth for the past two decades NBFC License must be taken from RBI u/s 45-IA of the RBI Act of 1934. A financial institution wishing to be registered as an NBFC must be duly registered either as per the Companies Act of 2013, or the earlier Act of 1956.
RBI strictly regulates and ensures that the NBFCs are complying with the provisions and regulations provided in Chapter III B of the RBI Act.
The principal business activity of NBFCs is to raise capital from the public depositors & investors and lend these further to the borrowers.
Types of NBFCs1. Liabilities:
- The deposit accepting NBFCs and
- Non-Deposit accepted NBFCs,
2. Activities:
- Factors
- Mortgage Guarantee Companies
- Investment Credit Company
- Infrastructure Debt Fund
- Micro Finance Institution
- Non-Operative Financial Holding Company
- Systemically Important Core Investment Company
NBFC Registration Process
STEP-1
STEP-2
STEP-3
STEP-4
STEP-1
STEP-2
Documents Submission
A hard copy of the application along with requisite documents and enclosures to the concerned Regional office of the RBI.
A hard copy of the application along with requisite documents and enclosures to the concerned Regional office of the RBI.
STEP-3
Documents to Central office of RBI
After verification and approval of the submitted documents and application the regional office sends the application to the central office of the RBI.
After verification and approval of the submitted documents and application the regional office sends the application to the central office of the RBI.
STEP-4
Certificate Granted
The certificate will be granted if the terms and conditions under section 45 –I A of the RBI Act, 1934 are fully satisfied.
The certificate will be granted if the terms and conditions under section 45 –I A of the RBI Act, 1934 are fully satisfied.
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Documents Required for NBFC Registration in India
Certificate of incorporation
Take a Certified Copy of CoI, MoA (Memorandum of Association), and AoA (Articles of Association) from the Regional ROC (Registrar of Companies)
Updated KYC
Latest KYC details, income proof, credit report, and Net-worth Certificate of Directors and shareholders.
Net Worth Certificate
Collect updated net worth certificate of Directors, member/shareholders, and Company.
Education Proof
Education & qualification proof of the Directors.
Company’s Details
Company’s PAN & GST number. Documents in support of the address of the company.
Bank Details
Details of the bank account of the company. This account must have at least Rs.2 crores deposited as the minimum NOF requirement. And it must be well audited for the last 3-years.
Banker’s Report
A report to be obtained from the bank confirming the No Lien remark on the Initial Fixed Deposit of Rs.2 crores.
Board Resolution
The board’s resolution must include, “approving the formation of the NBFC”.
Underwriting Model
A detailed action plan, for the next 5-years, about the loan products, complying with the Fair Practices Code, credit, and risk assessment policy must be present.
Organizational Structure
Complete plan of the organization hierarchy and decision-making process. The proposed criteria on which a loan application will get approved or rejected.
IT Policy
The planned system and Information technology policy.
What do you get
Rubber Stamps
Two rubber stamps, one with the name of company and one with the name of director
Incorporation Certificate
Certificate of incorporation bearing company registration number and details
License
NBFC license number to operate the financial activities
FAQs for NBFC Registration
Yes, NBFC can accept deposits with deposit taking license.
The minimum NOF for NBFC registration is INR 2 Crore. It shall be kept in the current account of the newly formed company in the form of Fixed Deposit.
Lifetime unless otherwise canceled due to non-compliance with the law.
For carrying loan or investment business in India, you must apply for NBFC License otherwise unlicensed lending or financing business is deemed to be illegal.
RBI Does not regulate insurance, Chit fund, all such entities regulated by SEBI, Nidhi Company, etc.
Public funds include ICD, Loan from Banks but Public deposits mainly includes souring of funds from individuals.