NBFC Registration in India
Non-Banking Financial Company (NBFC) is a type of financial institution that offers various financial products and services to customers, such as loans, advances, investments, leasing, hire-purchase, insurance, chit fund, etc. NBFCs are regulated by the Reserve Bank of India (RBI) under the Reserve Bank of India Act, 1934 and the directions issued by it from time to time.
Advantages of NBFC Registration:
NBFCs have some advantages over banks and other financial institutions, such as:
- NBFCs can cater to the specific needs of the customers, especially the unbanked and under-served segments of the society, such as small and medium enterprises, rural and urban poor, etc.
- NBFCs can offer flexible and customized financial solutions to the customers, such as lower interest rates, longer repayment terms, easier documentation, etc.
- NBFCs can operate with lower operational costs and overheads, as they do not have to maintain cash reserve ratio (CRR) and statutory liquidity ratio (SLR) like banks.
- NBFCs can leverage technology and innovation to provide better customer service and convenience, such as online platforms, mobile applications, digital payments, etc.
- NBFCs can diversify their sources of funds and income, as they can raise funds from various sources, such as equity, debt, deposits, etc. and earn income from various activities, such as lending, investing, fee-based services, etc.
Requirements for NBFC Company Registration:
To register as an NBFC in India, the following requirements have to be fulfilled:
- The company should be registered under the Companies Act, 2013 or the Companies Act, 1956, as a public or private limited company.
- The company should have a minimum net owned fund (NOF) of Rs. 2 crore or more. NOF is the difference between the aggregate of paid-up equity capital and free reserves and the aggregate of accumulated losses and intangible assets.
- The company should have at least one director with financial experience and a good CIBIL score or credit rating.
- The company should have a clear and detailed business plan for at least five years, covering the objectives, activities, target market, risk management, etc. of the proposed NBFC.
- The company should comply with the capital adequacy, prudential norms, corporate governance, fair practices, etc. prescribed by the RBI for different types of NBFCs.
How to Register as an NBFC in India?
The registration process for NBFCs in India involves the following steps:
Step 1: Apply online on the RBI’s website by filling the application form and uploading the required documents, such as certificate of incorporation, memorandum and articles of association, audited balance sheet, board resolution, etc.
Step 2: Submit the hard copy of the application form and the documents to the regional office of the RBI, along with the demand draft of ₹3 lakh as the application fee.
Step 3: Wait for the preliminary scrutiny and due diligence by the RBI, which may take up to 4 to 6 months. The RBI may ask for additional information or clarification, if required.
Step 4: Receive the certificate of registration (CoR) from the RBI, if the application is approved. The CoR will specify the type and category of the NBFC and the conditions and restrictions imposed by the RBI.
Step 5: Commence the business of the NBFC within six months of obtaining the CoR, failing which the CoR may be cancelled by the RBI.
Why Choose Bass Biz for NBFC Company Registration?
Bass Biz is a leading business consulting firm that provides end-to-end solutions for NBFC company registration in India. Bass Biz has a team of experienced and qualified professionals who can assist you with the following services:
- Company registration under the Companies Act, 2013 or the Companies Act, 1956, as per your preference and suitability.
- Preparation and submission of the online and offline application for NBFC registration to the RBI, along with the required documents and fee.
- Follow-up and liaison with the RBI officials for the approval and issuance of the CoR for the NBFC.
- Compliance with the RBI norms and regulations for the NBFC, such as capital adequacy, prudential norms, corporate governance, fair practices, etc.
- Advisory and support for the business operations and management of the NBFC, such as financial planning, risk management, accounting, taxation, auditing, etc.
Bass Biz has helped many clients in setting up and running successful NBFCs in India, across various sectors and segments. Bass Biz has a proven track record of delivering quality and timely services at affordable and transparent prices. Bass Biz also offers post-registration services, such as annual compliance, renewal of CoR, change of name, address, directors, etc. of the NBFC.
If you are looking for a reliable and professional partner for NBFC company registration in India, look no further than Bass Biz. Contact us today and get a free consultation and quote for your NBFC company registration.
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