NBFC License India: Favorite online market for NBFC Registration, to Buy NBFC or to Sell NBFC

A non-banking financial company (NBFC) is an entity that is registered under the companies act 1956. NBFCs are institutions that offer financial assistance and various banking services but do not have a banking license.
Few examples of NBFCs are “Investment Banks, Mortgage Lenders, Money Market Funds, Insurance Companies, Hedge Funds, Private Equity Funds, etc.”
After the great recession, NBFCs have proliferated in type and number. Since then, it has been playing a key role in meeting the credit demand unmet by traditional banks.
In India, there are approximately 10,000 NBFCs registered with the reserve bank of India (RBI).
Muthoot Finance Limited is India’s first NBFCs, which was started in the year 1888. It began as a small lender in the village of Kerala where it started by lending money to the villagers. It sanctions loans only against gold ornaments.

If you need an NBFC license, you can contact us.

Types of NBFC

Before a company applies for NBFC, it is important to determine the type and category of the NBFC license. The following are the types of NBFC:

Asset Finance Company

It is a company whose principal business is financing physical assets such as “Automobiles, Tractors, Generator Sets, Lathe Machines, Etc.”

Investment Company

Any company which is a financial institution and is carrying out its principal business as the acquisitions of the securities (stocks/bonds/shares/other financial securities) is an investment company.

Loan Company

Any company which is a financial institution and is carrying out its principal business as providing finance whether giving loans or advances other than its own.

Infrastructure Finance Company

It is a non-banking finance company deploying 75% of its total assets on infrastructural loans and has a minimum net owned fund of Rs. 300 crore.

Systematically Important Core Investment Company

It is a non-banking finance company with an asset size of over Rs. 100 crore. It accepts deposits from those businesses which acquire shares and securities.

Infrastructure Debt Fund

It is a non-banking finance company that facilities the flow of long-term debts into infrastructure projects. It raises resources through the issue of rupees or dollars with the denomination of bonds which has a minimum of 5 years as its maturity period.

Non-Banking Finance Company (Micro Finance Institutions)

It is the most popular type of NBFC. It is a non-deposit taking NBFC that is engaged in microfinance activities.

NBFC Factors

It is a non-deposit taking NBFC that is engaged in the principal business of factoring.

How Can You Register As NBFC

  • Your company should be registered under the Companies Act 2013.
  • A company should have a minimum net owned fund of Rs. 2 crores or more.
  • At least one director of the company from the same background should be there.
  • You should have a good CIBIL score in order to register under an NBFC.
  • Visit the RBIs official website and fill in the application form.
  • Application form should be submitted with all the required documents.
  • A CARN number will be generated once you have submitted the application form.
  • You are then required to send the hard copy of the application form to the regional branch of RBI.
  • When the application is checked and verified, the license will be provided to the company.

Contact us at +918750003325 for registration of NBFC, buying or selling of NBFC, or for any query related to NBFC.

Registration Required For NBFC

As mentioned before, NBFCs in India are regulated by the RBI. And as per RBI guidelines, an NBFC cannot carry on its non-banking operation if:
  • 1. It doesn’t have a certification from the bank
  • 2. It doesn’t have a net owned fund of at least Rs. 2 crore

Documents Required For NBFC Registration

  • Company corporation certificate
  • Brochure of the company
  • Detailed information of the management
  • Office location documents
  • Certified copy of the Memorandum of Association (MoA) Article of Association (AoA)
  • Duly signed list of director’s profile
  • CIBIL/credit reports of the company should be attached
  • A copy of the boar resolution certifying that the company has not carried NBFC activity and will not carry out any until the registration from RBI is granted.
  • A resolution on “Fair Practice Code” is to be passed and a certified copy of the same has to be submitted.
  • Certificate by the statutory depositor that the company is holding no public deposit and does not intend to do so should be submitted.
  • Certificate specifying owned funds to be submitted.
  • Bank information has to be furnished.
  • Self-certified copy of the bank statements and income tax returns are required.
  • Information related to the company’s future plan (next 3 years) along with income statement, cash flow statement and balance sheet.
  • Audited balance sheet along with profit and loss statement of the preceding 3 years has to be submitted.

NBFC Registration Fees

  • NBFC Registration Fees
  • A company would also need to pay fees for other few factors for the Memorandum of Association (MoA) Articles of Association (AoA).
  • A certain sum fee might also be given for Simplified Proforma For Incorporating Company electrically (SPICe).
  • A predetermined fee is to be paid for a “Reserve unique number(RUN)” and “Director identification numbers (DIN)”.
  • A digital signature certificate for every director would require a certain fee.
  • Additional fees is required to be paid while submission of the application to the registrar.

Financial Companies Not Requiring NBFC

Some of these principle businesses do not require NBFC:
  • Insurance Companies – regulated by the Insurance Regulatory And Development Authority Of India (IRDA)
  • Housing Finance Company – Regulated By The National Housing Bank
  • Stock Broking – Regulated By The Securities And Exchange Board Of India (SEBI)
  • Merchant Banking Companies – Regulated By The Securities And Exchange Board Of India (SEBI)
  • Venture Capital Companies – Regulated By The Securities And Exchange Board Of India (SEBI)
  • Companies That Run Collective Insurance Schemes – Regulated By The Securities And Exchange Board Of India ( SEBI)
  • Mutual Funds – Regulated By The Securities And Exchange Board Of India (SEBI)

Email us at ”contact@legalraasta.com” for registration of NBFC, buying or selling of NBFC, or for any query related to NBFC.

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Frequently Asked Questions

Which are the leading NBFCs in India?
Once the firms are registered, what compliances are required to be fulfilled?
Are deposits to be accepted by the NBFCs?
Significance of 50-50 test for NBFCs?
What is the difference between “A Bank and An NBFC”?
How does NBFC makes money?
Why do we need NBFC?

We look forward to help you with all your queries related to NBFC and hope to guide you into the right direction.

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