NBFC Registration Service and Process in India

Posted by Enterslice on November 22nd, 2018

What do you understand by NBFC registration?

You might have heard of NBFC but never got a clear understanding of it. Here, we will discuss the NBFC Registration Service and Process in India.

NBFC stands for Non-Banking Financial Corporation that has to be registered under the Companies Act, 2013.

In a progressive country like India, NBFC is like a pillar for the country’s economy as it provides the loan to businesses like hire-purchase, leasing, investing in shares, stocks, and debentures.

What do you know about NBFC Service and Process in India?

• There is an online application that needs to be filed in a prescribed format with all the required documents in place. This will lead to the generation of Application Reference number.
• To the concerned Regional office of RBI, you have to send a hard copy of the application and requisite documents.
• Once the regional office of RBI has taken a close look at your application with supporting documents, further it will be passed on to the central office of RBI. Certificate of registration will be granted if your application has no glitch.
• The central office of RBI will check your application on the parameters mentioned under the terms and conditions of section 45-I of the RBI Act, 1934.

Points to remember before you apply for NBFC registration.

You need to be little careful when you go for NBFC registration, there are certain guidelines that have to be followed in order to get issued the certificate of NBFC registration.

• In order to get the NBFC registration certificate, your company must be registered under the Company Act, 2013 or the earlier Companies Act 1956.
• If your business is making more than 50% of the total capital asset of the company for any year, then it is mandatory for you have an NBFC certificate.
• When you apply for the certificate of NBFC registration, your company must have a paid-up capital fund of an INR-2 crore or 5 crores if a foreign company is looking to set up an NBFC in India.
• The above-mentioned fund must be reflecting in the bank account at the filing an application for NBFC registration.

What are the types of business that do not come under NBFCs?

What if you are planning to have NBFC registration for long and at the end, you are told that your business doesn’t fall under our categories. So you cannot be issued an NBFC certificate. That won’t be good, right?

But don’t you stress over this issue, Enterslice has already done the homework so that you won’t face any of these challenges during NBFC registration.

•          Here are few of the of the businesses, that NBFC does not include-
•          If you are approaching to get the registration certificate for an industrial activity
•          Agricultural Activity
•          Providing any services and sale, purchase, construction of immovable property
•          Purchase or sales of any goods (other than securities)