Non-Banking Financial Company (NBFC) is a financial institution that does not have banking license but is allowed to offer financial products and services to customers. The NBFC Registration comes under the Companies Act, 2013 and the RBI Act, 1934. In India, the Reserve Bank of India is the supreme regulator of the NBFC. NBFC in India can be categorised into:
- Deposit Accepting NBFC
- Non-Deposit Accepting NBFC
PRE-REQUISITS OF NBFC REGISTRATION:
- Incorporation as per the provisions of Companies Act.
- Minimum Net Owned Capital Fund of Rs 2 crore.
- There should be atleast 1 director in the company from the same background or a Senior Banker as a full-time director in the Company
- Good CIBIL score is required to present in order to register as NBFC.
PROCESS OF REGISTRATION UNDER COMPANIES ACT, 2013:
- SPICe+ PART A: - Name Reservation
- SPICe+ PART B: - Company Incorporation along with the following attachments-
- Copy of Memorandum and Articles of Association
- Declaration by the first director(s) and subscriber(s) (Affidavit not required)
- Proof of office address and Copy of utility bills
- Copy of certificate of incorporation of foreign body corporate (if any)
- A resolution passed by promoter company
- Consent to act as a Director and interest of first director(s) in other entities
- Proof of identity and the residential address of subscribers, Nominee and applicants
- Proof of principal place of business
- Proof of appointment of Authorised Signatory for GSTIN
- Proof of id and address of Authorised Signatory for the opening of a bank account
- Specimen Signature of Authorised Signatory for EPFO
PROCESS UNDER RBI ACT, 1934:
Non-banking Financial company can commence or carry on business of a non-banking financial institution only after obtaining a certificate of registration from the Bank and having a Net Owned Funds of ₹ 2 Crore.
- An Online Application is required to be filed and also a physical copy of the application along with necessary documents is to be filed with the Regional Office of the RBI.
- Once you submit the application form, a CARN (Company Application Reference Number) will be generated.
- Thereafter, a Hard copy of the application (CARN to be mentioned) is to be sent to the regional branch of the Reserve Bank of India where the registered office of the Company is situated.
- After the application is checked and verified, the certificate of Registration is granted to the applicant for the Non-Banking Financial Company.
THE J&P ADVANTAGE:
Our CS Team at J&P handles all kinds of incorporation with utmost due diligence. From documents compiling to final incorporation our team works with utmost care leaving no potential loopholes. Our Team provides specialized services in formation of non banking financial company including buying or selling or management transfer etc. We also provide tech-enabled legal and financial solutions for NBFC in association with large number of investment bankers.