NBFC REGISTRATION

(Online Process/Free Consultation)

Contact for NBFC Registration

What is NBFC Registration?

Non Banking Financial Companies (NBFCs) are fast emerging as an important segment of the rapidly-growing Indian economy. NBFC offers almost every service that banks do including performing financial intermediation, offering loans, accepting deposits, giving cash advances, leasing, hiring purchase, etc. Due to a lack of banking institutions in many areas and increasing demand for loans NBFC more and more people are able to have a profitable business in India than ever before. NBFC can raise funds from the public, directly or indirectly, and can freely lend them to ultimate spenders. The minimum tenure to accept deposits is 12 months (1 year), and the maximum period consists of 60 months (5 years). NBFC advance loans to the various small, wholesale, and retail traders as well as self-employed persons. NBFC is very popular due to attractive interest rates on the investors’ deposits.
The working and operating of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act. Section 45-IA provides that no NBFC shall commence or carry on the business of a Non- Banking Financial Institution without obtaining a Certificate of NBFC Registration which can only be issued by the Reserve Bank of India.

It carries on the business of-

  • Loans and advances
  • Acquisition of shares/ stocks/ securities/ bonds/ debentures issued by the government or other authorities
  • Leasing & Chit business
  • Hire-purchase
  • Insurance business

It does not carries the Business of-

  • Agriculture activity
  • Industrial activity
  • Purchase or sale of any goods not being securities
  • Providing any services and sale/purchase/construction relating to any immovable property
Differences Between NBFC and Bank:
  • A Non-Banking Financial Company, unlike banks, is not a part of payment and settlement system. It cannot issue cheques to its customers.
  • Unlike Banks, not all NBFCs can accept demand deposits. NBFC can only accept demand deposits if it makes a specific application and it is approved by the Reserve bank of India.
  • Unlike in case of banks, Deposit Insurance facility of DICGC is unavailable for NBFC depositors.

According to the provisions of Reserve bank of India Act, 1934, no NBFC can carry on or commence the activities of a non-banking financial institution without-

  1. Having Net Owned Funds of Rs. 2 crores and
  2. Having a valid Certificate of NBFC License issued by the Reserve Bank of India.
PROCEDURE:

Section 45-IA states that a Non-Banking Financial Company can carry on and commence operations only upon the obtaining a Certificate of NBFC License and having a net owned fund (NOF) of Rs. 2 crores.

Step 1:

The applicant must be a company incorporated under the Companies Act, 2013 or the Companies Act, 1956.

Step 2:

The application form is available on the official RBI website.

Step 3:

A hard copy of the duly filled up application form with supporting documents as prescribed has to be sent to the Regional Office of the Reserve Bank of India.

Step 4:

The application and the documents are scrutinized by the RBI officials.

Step 5:

The application may be rejected due to incomplete or incorrect information or documents. Thus due care has to be taken while making the application for NBFC License.

Step 6:

The procedure from filling up of the documents till the NBFC license is obtained takes about 90-120 days time.

Benefits

Since NBFCs are very systematic and they offer considerably less loan amount, therefore, borrowers return the amount easy which makes it convenient for lenders.

NBFC Registration process is very easy if the consultant you have is experienced and having NBFC Registration experience.

At present, the fintech industry is at boom as everyone needs an easy source of funding, it can be an advantage for aspiring Entrepreneurs to register a NBFC and earn good return in Fintech Industry.

Registering a NBFC is considerably easy task as compared to register a small Bank. The cost & time both are excessive in terms of opening a Bank.

Get a free consultation for NBFC registration by scheduling an appointment with Legal Time.

Why Choose us

1. STARTUP’S FIRST CHOICE

We ensure startups to focus on their project and leave all the legalities and documentations to us. From our technology driven platform and on time delivery startups prefer us to do Company registration.

2. TECHNOLOGY DRIVEN PLATFORM

100% Technology driven platform to speed up your company registration process and make your life easy

3. BEST PRICING

We understand the value of money for startups. We offer complete transparency and affordable cost to startups.

4. 100% ONLINE SERVICE

Fully online service so that you can start and complete the process without running around from the comfort of your home or office.

5. EXPERT PROFESSIONALS

At Legal Time, we work only with experienced Chartered Accountants & Company Secretaries to handle your company registration.

Documents Required

Copy of the company’s Certificate of Incorporation

Certified copies of MOA (Memorandum of Association) and AOA (Articles of Association)

Updated KYC of all the directors and shareholders of the applicant company

Credit report of every shareholder and director of the company

Clean banker’s report with no lien remark on an FD (Fixed Deposit) of Rs. 2 crores

An NOF (Net-owned Fund) certificate of all the shareholders and directors

A comprehensive action plan of the proposed NBFC along with the organization’s structure

The financial statements of the company

The highest qualification of all the directors of the company

Other documents as required

Get a free consultation for NBFC registration by scheduling an appointment with Legal Time.

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