NBFC Registration

A Non-banking Financial Company has grown to be a vital part of our financial system nowadays. Through peer to peer lending, this shape of commercial enterprise entity enables loans to individuals whose needs had been previously unmet via conventional monetary institutions. Registered below the employer’s act, this commercial enterprise entity offers banking centers like the following:

Loan facilities
Advances
Accepting deposits
Leasing
Hire buy
Retirement making plans
Securities exchange
Money marketplace trade
Merger sports
Underwriting centers
The manner for them to raise funds is either publicly the usage of directly or indirectly from public or from cooperative or commercial banks. These institutes offer the mentioned services to small scale business, micro scale companies and individuals as properly. Because of the NBFCs accentuation toward supplying the most bendy services, the most shortened tactics, expanded prices of deposits. This has made the NBFC one of the premier financial institutes in India.

Difference between NBFC and a financial institution
Demand deposits aren’t generic in NBFC
NBFC aren’t the a part of payment and settlement machine.
NBFC cannot trouble cheque that they draw themselves.
Deposit insurance facility is not to be had for the depositors for NBFC.
Now which you recognise how specific an NBFC is from bank, are you ready to start your own?

Abgps Advisory presents the registration services if you need to start your own Non Banking Financial Company. We are green and we’re going to make sure that your corporation starts offevolved up as quickly as viable.

Documents Required for NBFC Registration

1. signed copies of the incorporation certificates of the company
2. Signed copies of the memorandum of association.
3. Board resolution that states:
   1. An undertaking that says that the company has never done activities pertaining to NBFC and won’t start it without the registration from RBI
   2. The bodies that are not incorporated and the director hold a lot of interest over them. These bodies can either be incorporated or:
      1. The bodies that have not accepted any public deposits yet.
      2. Does not hold any public deposit
      3. Will not accept any deposit in future.
      4. Follow through with the fair practices code setup by the RBI.
   3. Declaration that the company:
      1.  Has not accepted any public funds in the past and does not hold any public fund as on the current date
      2. Will not accept any deposit in the future without approval of the RBI.
   4. Declaration that the company shall seek the RBI’s approval before creating any customer interface.
4. Photocopy of the fixed deposit receipt or banker’s certificate
5. For the company that are already in existence, the following documents are needed as well:
   1. Audit balance sheet along with the annexure
   2. Profit and loss statement
   3. Auditors Report
   4. Directors report
6. A bankers report of
   1. The director of the applicant company that have significant interest in other companies
   2. The applicant company along with the directors of the subsidiaries, associated, holding, and related parties.
7. Photocopy of the highest educational certificates that the directors have.
8. Photocopy of the experience certificate (this is an optional documents) if you have experience in any facet of the financial centre.

Pre-requisites of NBFC

1. You should already be an incorporated company.
2. The minimum net owned fund of that company should be INR 2 Crore in case of Indian entity and INR 5 Crore for foreign entity.
3. At least one of the directors of the company should have experience in the field of banking and financing.
4. The CIBIL record of the company should not have any irregularities.