A NBFC Registration or an NBFC is a financial entity registered to and regulated by the Reserve Bank of India (RBI). It is a successful supplement to traditional banking institutions. It provides credit facilities to tsot who cannot avail of credit from Banks.
Banks are too big and complex as entities to cater to the financial need of every needful in the country. It is not a question of lack of financial resources but the authorization to extend such services to consumers. NBFCs were primarily authorized to extend such services to consumers.
NBFCs were created to serve the unorganized rural sectors of the economy and utilize the country’s remote and less accessible financial resources to generate revenue. Read More: Company Registration
To commence your business as a Non-Banking Financial Company (NBFC), you need to register yourself with Apex Bank. The Reserve Bank will issue the Certificate of Registration as an NBFC to the eligible candidates. But what ensures a candidate’s eligibility?
An NBFC registered under the Companies Act of 2013 as an incorporated company must comply with the following RBI guidelines:
- The applicant entity must be register under Section 3 of the Companies Act, 2013
- The applicant must maintain a minimum requirement of Rs. 2 crores as a Net Own Fund owned by the applicant company.
Net Owned Funds can be calculate from the firm’s audited balance sheet. The net owned fund can be calculated by subtracting the deductions from the Total own fund. These are mentioned below:
Total Owned Fund
- Paid-up Equity Capital
- Share Premium Account Balance
- Free Reserves
- Capital Reserve
- Balance of Accumulated Loss
- Deducted Revaluation Reserves
- Book value of Intangible Assets
Required Documentation for NBFC registration
The following documents must be submit along with the application for NBFC registration in India:
- CoI (Certificate of Incorporation) of the applicant company.
- Brochure of the company detailing its management.
- A PAN card or a Corporate Identity Number (CIN) of the applicant company
- Proof of address for the official premises.
- Certified copy of the applicant company’s Articles of Association (AOA).
- Certified copy of the applicant company’s Memorandum of Association (MOA).
- Self-attested document of all the Directors’ profiles duly signed by each director.
- CIBIL score of the applicant company
- Credit reports of the Directors.
- A certified copy of a Board Resolution on the Fair Practices Code.
- A certificate specifying the Net-owned fund of the applicant company
- An audited balance sheet of the company
- Profit and Loss statement of the applicant company.
- A self-certified copy of Bank statements
- Income Tax Returns of the company.
- A detailed Company plan for the next three years.
- Projection of balance sheets.
- Cash flow statements projections for 3 years.
- Income statements.
Step-by-Step NBFC registration alanya escort
NBFC Registration Process
How to get NBFC Registration?
The following is the step-by-step procedure to register your business as an NBFC is as follows:
- To register a Non-Banking Financial Company with the RBI, the applicant must first register its business entity as a Company under the Companies Act of 2013.
- The applicant must gather and maintain a minimum Net Own Fund of two crore rupees.
- The applicant must gather and furnish the require documents to be submit to the authority.
- An applicant must maintain a decent CIBIL score to register as an NBFC.
- The applicant can then file the online application for NBFC registration.
- Submit the application online, along with the required documents.
Note: NBFC registration cost: The RBI charges no fee for the NBFC registration.
- After the application submission, a CARN number will get generate for the applicant.
- After the reception, the applicant must submit a hard copy of the application to the regional branch of RBI for assessment.
- After successfully verifying the submitted application, the RBI will issue the NBFC license to the applicant.