Checklist for Incorporation of NBFC Registration in India

Non-banking financial company doesn’t hold banking licenses yet performs financial services similar to banks, registered as a company, whether private or public and is governed through RBI. NBFCs provide the following services such as:

• Loan facility
• Credit facility
• Acquisition of shares and stocks
• Hire-purchase services
• Chit business
• Hedge funds activities

Any entity operates as an NBFC without obtaining authorization from RBI, faced a hefty penalty. Thus to avoid such damages and penalties, it is advisable to incorporate NBFC in India.

Following is the checklist of the procedure to get the NBFC registered with ease:

• Apply online as per prescribed format through RBI website: COSMOS by annexing a necessary list of documents:

1. COI
2. MOA and AOA
3. Details including administration and management of the company
4. Complete information of directors such as name, address, PAN, Aadhar or other identity proof
5. Bank statement reflecting net owned worth of minimum INR 2 Crore

• After applying online applicant needs to submit hard copy also to the concerned regional office of RBI
• Upon the receipt of application and documents by the regional office of RBI, same is forwarded to Central Office of RBI for further verification for the grant of certificate
• If all the terms and conditions are satisfied and application is completed in all respect, RBI issues Registration Certificate to the applicant

Following activities needs no NBFC License:

• Housing Finance Companies
• Insurance Companies
• Merchant Companies
• Nidhi Companies
• Chit fund companies regulated by the concerned state government
• Venture capital companies regulated by SEBI
• Entity carrying on agricultural and industrial activities.

NBFCs can be classified as follows:

• Based on the nature of activity perform:

1. Investment Company
2. Core Investment Company
3. Asset Finance Company
4. Loan Company
5. Infrastructure Finance Company

• Based on authorization to take a deposit:

1. Deposit accepting NBFC
2. Non-deposit taking NBFC

Following are the benefits enjoyed by this form of the financial system:

• The registration of NBFC is easier and less complicated compared to banks.
• Due to the extensive requirement of secure sources of finance, there is a gradual growth in demand for NBFC Registration Online thus it is advantageous for young entrepreneurs to register NBFC for earning a good return in Fintech Industry.
• It is very convenient for borrowers to return the amount taken as a loan as NBFCs usually offer considerably loan of less amount.
• The functioning of NBFCs is faster compared to traditional banks

NBFCs are engaged to carry the business of providing loans and advances as well as accepting deposit once it obtains the NBFC license from RBI. Contact us to NBFC License by following hustle-free procedures.