Special Deals for NBFC In Delhi NCR

NBFC

An NBFC is a company that is engaged in the business of giving loans and advances, leasing, hire-purchase, insurance business, chit-fund business, acquisition of shares, bonds, debentures, stocks, and Government or local authority bonds/ securities which are marketable in nature, etc. The business is similar to that of banks but NBFCs are different from banks. Because though they both deal with money, yet NBFCs do not need to have a full bank license. NBFCs can accept public deposits under any scheme of arrangement or any other manner and lend the money to their clients in the form of leasing, hire purchase, etc. NBFCs are registered under the Companies Act, 2013. Further, every NBFC must also be registered with the Reserve Bank of India to commence and carry on its business of non-banking financial nature. NBFC License India provides all services related to NBFCs and its registration in Delhi, NCR, and all over in India. Whether you are in Haryana, UP, Mumbai, Chennai, Andhra Pradesh, Rajasthan, West Bengal, or somewhere else in India.

Scope of NBFC in Delhi

The capital city of India has always been a popular tourist attraction, due to its rich cultural heritage. It is also quite famous for its street foods and shopping. Several trade conventions and fairs are also held here throughout the year. NBFC in Delhi NCR includes the national capital territory of New Delhi and few districts surrounding it from the states of Uttar Pradesh, Haryana, and Rajasthan. Prominent among them are Noida, Gurgaon, Manesar, Sonipat, etc. Delhi has become a favorite startup destination because it provides businesses with easy access to foreign investors and early stages of funding that are vital for any new venture’s success. Its proximity to government institutions, supportive government policies, its business-friendly infrastructure, availability of manpower, real estate, and a burgeoning entrepreneurship culture make the city a viable hub for all kinds of start-ups. At present, almost 23% of India’s start-ups have initiated their businesses from Delhi NCR. Such as Grofers, Paytm, Lenskart, Naukri, Make My trip, to name a few. Delhi is one of the fastest-growing financial regions of the nation, accounting for 7-8% of India’s total GDP. According to NASSCOM, India has become the 3rd largest base for startups in the world. There are currently more than 4100 startups in India, the number is expected to rise to 12000 by 2022. Most of these business start-ups do not get adequate financial assistance easily from the organized financial sector. Since almost 90% of them are in the unorganized segment. To continue the success story of the start-ups, the government understands that finance must be provided at the right time and in the right quantity. Therefore, it encourages NBFC entities in Delhi.

Scope of NBFC in Delhi

Exclusions

• Cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time.
• Are not a part of the payment and settlement system and cannot issue cheques drawn on itself.
• Do Not Include:
• Agriculture activity,
• Industrial activity,
• Purchase or sale of any goods (excluding securities), or
• Providing any services concerned with the sale/purchase/construction of an immovable property.
• Cannot offer higher interest rates, gifts, incentives and any other additional benefits to the depositors.
• Cannot accept demand deposits.
• Deposits with NBFCs are not insured
• Repayment of deposits by NBFC is not guaranteed by RBIts with NBFCs are not insured

Difference between NBFCs and Banks

Types of NBFCs

• Based on the type of liabilities –

1. 1. Deposit or
   2. Non-Deposit taking NBFCs.

• Based on their activity –

1. 1. Loan Company (LC),
   2. Investment Company (IC),
   3. Infrastructure Debt Fund (NBFC-IDF),
   4. Mortgage Guarantee Companies (MGC),
   5. Asset Finance Company (NBFC-AFC),
   6. Infrastructure Finance Company (NBFC-IFC),
   7. Systemically Important Core Investment Company (CIC-ND-SI),
   8. Non-Operative Financial Holding Company (NOFHC),
   9. Micro Finance Institution (MFI), and
   10. Factors (NBFC-Factors), etc.

Necessary Requirements to Register NBFC in Delhi

Following conditions laid down by Section 45 (1A) of the RBI Act, must be fulfilled for a company to be registered as an NBFC in Delhi:

• Registration of NBFC in Delhi

The business should be either registered under the Companies Act 2013 or the previous Companies Act 1956. As a private or a public limited company.

• Director’s Qualifications

At least 1/3rd of the Directors must have around 10 years of experience in Finance. And be a full-time Director.

• Unique Business Plan

The Company must have a comprehensive business plan laid out for operations for the next 5 years.

• Net Owned Fund (NOF) for NBFC in Delhi

It must have at least Rs. 2 crore as its minimum NOF. Only equity paid-up share capital is considered and not the preference share capital. It should be calculated according to the last audited balance sheet of the company. And it should not be a borrowed fund. The minimum NOF is different for specialized NBFCs such as NBFC-MFIs, NBFC Factors, and NBFC-CICs.

• Honest Credit History

The CIBIL score and credit records of the company, the Directors and the members must be clear. They must have no write-offs or intentional defaults of the repayment of loans to NBFC/Bank.

• FDI Compliance for NBFC in Delhi

NBFC Registration in Delhi

After a company has been incorporated and the minimum NOF acquired, you need to follow the below procedure to get it registered as an NBFC:

1. 1. An application form is to be submitted online along with the required documents. Thereby, a Company Application Reference Number (CARN) gets generated. This reference number is used during all future enquiries and communications.
   2. The hard copy of the documents and the application form that were submitted above are to be sent to the Regional Office of the RBI.
   3. For the Chennai region, the office is situated at Fort Glacis, No. 16, Rajaji Salai, Chennai – 600 001. This has jurisdiction over the State of Tamil Nadu, Union Territory of Puducherry, Bangalore, Hyderabad and Thiruvanathapuram.
   4. Once the submitted documents are verified and approved, the regional office will forward the application to the central office of the RBI. There the application and the documents are reviewed thoroughly and a check is conducted about the past performance of the company.
   5. If the company is meeting all the terms and conditions specified in Section 45-I A of the RBI Act, the License will be granted to you for the Non-Banking Financial Company.

Please make sure that the required minimum capital is kept in a deposit account, free from any claims. Generally, such amount is maintained in an FD (Fixed Deposit). RBI will verify this deposit amount of the company with the concerned bankers.

Documents Required for NBFC License

• PAN Card
• Aadhaar card
• Proofs of directors and partners
• Company Incorporation Certificate
• Address proof of the company
• Bank statement of the company
• Company’s Audited Balance Sheet and Profit & Loss Account
• Income tax registration – TAN
• GST registration
• Memorandum of Association (MoA)
• Article of Association (AoA)
• Brief details about business activity
• Auditors report for the entire period of the company’s existence, or for the last 3 years, whichever is less
• Banker’s report representing details of deposits and loan balances as on the date of application and the conduct of the account

Compliance Requirements for NBFCs after CoR

For an NBFCs, there are separate provisions to be met under the Companies Act and the RBI Act. Both have to be complied with. Below are the basic requirements of a company registration:

• • Appointment of Statutory Auditor (CA with 5+ years of experience),
  • Statutory Audit,
  • Tax Audit,
  • GST Return Filing,
  • Income Tax Return Filing,
  • ROC Return Filing,
  • All other Compliances/Returns required by a competent authority.

Compliances for NBFCs by RBI

• Register with COSMOS,
• Register with C-KYC,
• CERSAI Registration,
• Adopting Fair Practice Code,
• Compliance of KYC Anti-money Laundering,
• FIU-IND Registration,
• Register with CIC,
• Filling of NBS-9 by using the Online Platform of RBI (COSMOS),
• Secretarial compliances.

Penalty of Non-Compliance to RBI Regulations

RBI has the authority to take strict regulatory action if a company has not obtained a Certificate of Registration (CoR) of NBFC, but still is running a business of lending, accepting deposits or making investments. RBI can impose a heavy penalty or fine. Or the entity can even be prosecuted in a court of law.

RBI invites the general public, to report any entity which does non-banking financial activity but does not figure in the list of authorized NBFC in Delhi on the RBI website. Appropriate action will be taken for infringement of the provisions of the RBI Act, 1934.

Additionally, RBI analyzes market intelligence reports, complaints, and exception reports from statutory auditors of the companies, information received through SLCC meetings, etc. to find out companies that are in violation of the norms. This information is also shared with other financial sector regulators and enforcement agencies in the State Level Coordination Committee Meetings.

Why Choose NBFCLicenseIndia

To obtain CoR from the RBI is not as simple as it sounds. All forms and details must be filled with extra care. Diligent is required while submitting supporting documents such as banker’s reports, business plan, the proofs of the directors, etc. The application and the documents should clear the high parameters set by the RBI. And NBFC License India can help you during all these complex challenges.

At NBFC License India, we take care to address the critical issues of outlining company policies, business strategies, drafting MoA & AoA, etc. And NBFC License India can help you during all these complex challenges.

We ensure that you are not bothered to make follow-ups with the RBI for the status of the application.

Our support also extends to:

• New Registrations
• Meeting RBI Compliance
• Internal Audit Services
• Mergers/Demergers
• Takeovers
• Business Re-structuring
• Setting up Business Plans & Policies
• Contract Drafting
• Approval for Management Change from RBI
• Designing Financial Services
• Marketing Digital Loan Products