How to Register an NBFC Company in India

Our globally distinguished law firm of India, well-based in Delhi, offers the whole gamut of legal and supportive services for perfect and prompt NBFC registrations in India, and also in countries worldwide. In this information-rich and very beneficial web-article, we are exclusively describing our services for establishing the non-banking financial companies in India, anywhere in the whole country. All necessary information in connection with how to register NBFC with RBI, is provided in details in the below sections, to help companies, businesspersons, and investors of India and abroad.

A brief content regarding the non-banking financial companies (NBFCs) is necessary here to help novices to this field of business or services. These NBFCs are those companies which deal with finances and offer shadow banking services to their clients, without having a banking license, and are thus, different from the financial institutions in the banking sector of a country. The most common clients of these NBFCs are entrepreneurs, industrialists, depositors, small to medium-scale industries, investors, professionals, stock brokering agencies, retail and wholesale traders and merchants, and companies and institutions in diverse economic fields. The most general and popular businesses of these companies are related with the areas of hire-purchasing, leasing and finance, industrial and commercial loans and advances, investment funds, deposits, chit business, insurance business, instruments of the money and capital markets, and other similar areas and activities. These NBFCs usually and mainly perform two main categories of services, namely, bridging the gap between the public borrowers and investors, and playing intermediation between the public investors & borrowers and the institutions in the banking sector. Consequently, these NBFCs are now commonplace in most countries of the world, and are regarded collectively as a highly significant complementary to the commercial and co-operative banks.

Requirements for NBFC Certificate

• The applicant company must be properly registered as per the provisions and regulations of the Companies Act of 2013, or the earlier company law of 1956, or the LLP Act of 2008.
• The company which is interested in obtaining the NBFC certificate, must be engaged in or cherishes to be involved in anyone or more business areas noted above. Since January 1997, for doing business in any of these fields, the proper registration under any of the three categories of NBFCs has been made mandatory.
• The minimum equity share paid-up capital required for getting such a certificate is Rs.-2crore at present (as raised since April 1999), which must be present in the bank account of the applicant company, at the time of filing the application for this registration.
• The main and most significant documents essentially required for acquiring the desired NBFC certificate from RBI, are the certificate of company registration; MOA and AOA of the applicant company; documents related with the location, administration and management of the company; audited financial accounts for last three years; certifications related with income tax and PAN; board resolution for NBFC certificate; a summary of the activities and incomes of the company in last three years; etc.

Procedure for NBFC Registration

After satisfying all above-mentioned requirements, the applicant company has to file an online application with the RBI's website (www.rbi.org.in). After online submission of the concerned application, the applicant will get a Company Application Reference Number, to facilitate his enquiry in this connection in future. Then, the company requires to submit the duplicate hard copy of the online application to the immediately concerned regional office of the RBI, along with all demanded documents and enclosures. The regional office (RO) checks the accuracy of all submitted documents, and after being satisfied the RO sends the application for NBFC certificate to the central office, for further examination and approval. The RBI grants the certificate only when all prescribed things in the section 45-IA of its Act of 1934, are completely satisfied by the applicant company. Our well-experienced and expert lawyers help the desirous companies in obtaining swiftly this NBFC certificate from RBI. While with us, no one needs to bother anymore regarding how to start a NBFC in India, in any of the above-noted fields, or anywhere in the entire country of India.