NBFC Company Registration Procedure, Documents in India

Non banking financial company (NBFC) is a company incorporated under companies Act, 2013 or companies Act, 1956. RBI regulates the working of NBFCs under the framework of RBI Act, 1934 and directions issued by it from time to time. Before starting business NBFC has to get licence from RBI.

Criteria for getting NBFC Licence from RBI:

  • It should be company registered under companies Act, 2013 or companies Act, 1956.
  • Must have Minimum net owned fund of Rs. 2 crore.
  • Company must have one full time director from NBFC background or from senior banks.

NBFC Company can be registered as:

  • Housing finance company
  • Asset finance company
  • Loan company
  • Micro finance company
  • Investment company
  • Loan company
  • Infrastructure finance company
  • Mortgage Guarantee company
  • Non operative financial holding company

NBFCs lend and make investments and hence their activities are similar to banks; but they are  different to banks:

i). NBFC cannot accept demand deposits,

ii). NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;

iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

Procedure to start NBFC Registration in India:

  • Registered as a Private company or as a public Company under ROC.
  • The minimum capital requirement for NBFC is Rs. 2 crore.
  • Deposit the capital amount into bank and obtain a certificate from the same.

Documents required for NBFC Registration:

  • Registration certificate of company.
  • Certified true copy of MOA & AOA.
  • Certificate of deposit from bank.
  • Report of the bank

Above mentioned documents shall deposited to RBI portal online as well as all documents shall physically submitted to the regional office of RBI in the respective region of the company.

Though NBFCs roles are shadowed by banks the role of it to a developing economy like India is much appreciated and pivotal because it is able all class of people across the country and provide its services for the development of the same.

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