In India the banks have very strict policies for lending funds and many people can not even qualify to their policies. People who faces shortage of funds always look for the alternatives to full fill their needs and getting loans from any bank or financial institution is the primary solution they can think for. As the Business of lending funds always has its grip in the market so the people with good net worth can enter this market as an entrepreneur.
To carry on such activities the one has to register one NBFC and this can only be done after taking the approval from Reserve Bank of India (RBI).
NBFC Company Registration
Non Banking Financial Company (NBFC) is a Company registered under the Companies Act, 2013/1956 involved in the principal business of lending, investment or other financial activity. Any entity looking to pursue the Financing business i.e. lending, accepting deposit shall take NBFC license before doing any such financial activities.
Concerned Authority to obtain NBFC License
The concerned authority to obtain NBFC license is Reserve Bank of India.
Minimum 2 Directors
Minimum 2 Shareholders
Minimum Share Capital should be Rs. 2 cr.
Types of NBFC
There are two types of categories of NBFC:
a) Deposit taking NBFC i.e. which accept deposits.
b) Non-Deposit taking NBFC i.e. which does not accept deposits.
Documents Required to incorporate NBFC Company
- Pan Card of all the Proposed Directors/Promoters.
- Adhar Card and Voter ID of all the proposed/ Directors/Promoters.
- Address Proof for the premises of the Business along with the no Objection certificate from the owner of the property.
- Email ID and Mobile no of all the Directors
Documents Required to obtain License
- COI of the Company along with MOA/AOA.
- Bank Account details with a minimum paid up capital of Rs. 2 Crore.
- Address proof for the registered office of the Company.
- Profile of the Management of the Company.
- PAN and Address proof of the Directors of the Company.
- Board Resolution.
- Company work profile.
- Audited Financials for the last 3 years, if applicable.
- Filled up and signed Annexure 1 2 and 3 as required by the RBI Act.
NBFC Company Registration Process
- Obtaining Digital Signature for all the Directors/Promoters.
- Obtaining DIN for all the Directors.
- Name Approval Application.
- After getting name approval, application for certificate of incorporation will be filed.
- After Certificate of Incorporation submission of the documents to the Reserve Bank of India
Advantages of NBFC Company Registration
- It can perform the function of lending of money.
- It can provide credit facilitates.
- It can also fund private education.