Excellent Market for NBFC in Mumbai

  • New Registrations, Buying, Selling or Collaborations
  • Powai, Oshiwara, Andheri & Neighboring
  • Complete Assistance in Getting NBFC License from RBI
  • Legal Advisory Before & After Incorporation
  • Consult for latest Fintech model
  • Audit, Accounting & GST Support Services
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NBFC

An NBFC is a company engaged in the business of providing loans and advances, acquiring shares, stocks, bonds, debentures and Government securities (including local authority bonds or other marketable securities), leasing, hire-purchase, insurance business, chit-fund business, etc.

NBFCs can accept deposits from the public under some scheme or arrangement or in some other manner and lend the money to their clients by leasing, hire purchase, etc.

The business is quite similar to that of banks still NBFCs are not same as banks. Because, even though their primary business is to do with loans and money, yet NBFCs are not required to obtain a full bank license.

NBFCs, like all other companies, are to be registered under the Companies Act, 2013. Moreover, every NBFC must also get a License from the Reserve Bank of India to commence and carry on their business of non-banking financial nature.

NBFC License India provides all services related to NBFCs in Mumbai. From registration, RBI License, Sale, Purchase or other Legal Consultancy. Whether you are in Mumbai, Delhi, Chennai or anywhere else in India.

Popular NBFC Projects in Mumbai

Include:


  • Investment Company
  • Asset finance and loan finance Chit business
  • Non-operating financial holding
  • Hire-purchase
  • Lease business
  • Insurance business
  • Mortgage guarantee
  • Infrastructure Finance Company
  • Acquisition of shares/stocks/securities/bonds/debentures issued by Government or local authority or other similar marketable securities,

Do Not Include:


  • Agriculture activity
  • Industrial activity
  • Purchase or sale of any goods (other than securities) or
  • Providing any services related to the sale/purchase/construction of an immovable property.

NBFC Hub in Mumbai

If a city can shape you as per person, a city can build you as an entrepreneur as well. A cosmopolitan city introduces you to people with different languages, cultures, social strata, and different thought processes. A cosmopolitan city like Mumbai introduces you to a diversified set of users. And, you can build a truly global product. Mumbai, a fusion of characters, presents various start-up opportunities to entrepreneurs. With such a wide variety of audiences available, one just has to choose a product and open up. Being the financial capital of India, Mumbai has headquarters of most banks and regulatory bodies like RBI and SEBI. Not to forget the BSE (Bombay Stock Exchange) itself. So it is no surprise that this city has a monopoly over start-ups. Especially fin-tech, or financial technology, start-ups. The talent pool is immense for the financial sector, due to the presence of world-class educational institutions. Interestingly, not only a whopping 42% of the top 50 FinTech start-ups are based in Mumbai but 30% of FinTech funding in the country has been raised by Mumbai-based businesses. The city has seen the highest FDI inflow in India with a staggering US$ 114 billion totalled between 2000-2018. Besides, Mumbai has the highest number of HNIs, even though, Chennai, Hyderabad, Pune, and, Ahmedabad have thriving start-up ecosystems. The government’s backing has done wonders for the Mumbai-based start-ups. Maharashtra is the first state to have a State FinTech policy. The aim is to create a corpus of Rs. 250 crore over the next 3-years. It is to be used to build co-working spaces, provide incentive funds, and annual aid for internet expenses, electricity and infrastructure charges. The Mumbai Hub provides an ecosystem comprising the entire infrastructure, organizations and people within the hub, as well as how those components are structured and engage with each other to nourish entrepreneurial innovation and vision. The Maharashtra government made it obvious that businesses should lead and complete backing will be provided.

What Types of NBFCs are there

NBFCs are generally differentiated on the basis of:
  • Type of liabilities –
    1. Deposit or
    2. Non-Deposit taking NBFCs.
  • Type of Activities –
    1. Investment & Credit Company (NBFC-ICC) (this includes the earlier categories of Asset Finance Company, Loan Company, and Investment Company)
    2. Infrastructure Debt Fund (NBFC-IDF),
    3. Mortgage Guarantee Companies (NBFC-MGC),
    4. Infrastructure Finance Company (NBFC-IFC),
    5. Systemically Important Core Investment Company (CIC-ND-SI),
    6. Non-Operative Financial Holding Company (NOFHC),
    7. Micro Finance Institution (MFI), and
    8. Factors (NBFC-Factors), etc.

Prerequisites for NBFC Registration in Mumbai

According to Section 45 (1A) of the RBI Act, following requirements must be fulfilled for a company to get the license of an NBFC:

  • NBFC Registration in Mumbai:

 The business should be enrolled, whether as a private or a public limited company, either under the Companies Act 2013 or the previous Companies Act 1956. NBFC Registration in Mumbai.

  • Comprehensive Business Plan:

For NBFC Registration in mumbai the Company must have a well laid-out business plan for operations and goal achievement for the next 5 years.

  • Net Owned Fund (NOF) of NBFC in Mumbai: 

Its NOF must be at least Rs. 2 crore. Only equity paid-up share capital is taken into account for the purpose and not the preference share capital. It should be calculated as per the last audited balance sheet of the company. And it should not include borrowed funds. The requirement of minimum NOF is separate for specialized NBFC in Mumbai, such as NBFC-MFIs, NBFC Factors, and NBFC-CICs.

  • FDI Compliance: 

If the entity is expecting foreign investment, it must comply with the prerequisites of the FEMA Act.

  • Director’s Qualifications: 

At least 1/3rd of the Directors must have an experience of at least 10 years, in Finance and banking. And such Director should be in full time employment with the company.

  • Decent Credit History: 

The CIBIL and Credit score of the business, its Directors and its members must be in the clear. They must have had no write-offs or intentional defaults on the repayment of loans or credit.

NBFC Registration in Mumbai

After the above given basic requirements have been satisfied. That is the company has been incorporated and the minimum NOF acquired, now, you need to go through the below steps to get registered as an NBFC:
    1. An application form is to be submitted, online on the RBI portal, along with the required documents. The application generates a CARN or Company Application Reference Number. This reference number is to be used during all future inquiries and communications.
    2. The hard copy of the documents and the application form that was submitted above are to be sent to the nearest Regional Office of the RBI.
    3. For the Mumbai region, the office is situated at 3rd Floor, RBI Building, Opp. Mumbai Central Railway Station, Near Maratha Mandir, Byculla, Mumbai – 400 008. This has jurisdiction over the State of Maharashtra and State of Goa.
    4. Once the submitted documents have been checked and approved, the regional office will forward the application to the central branch office of the RBI. The application and the documents are inspected and the past performance of the company is examined thoroughly.
    5. If the company is fulfilling all the terms and conditions specified u/s 45-I A of the RBI Act, it will get registered as a Non-Banking Financial Company. And a CoR is issued.
Please ensure to keep the required minimum capital in a deposit account, free from any claims. Generally, entities maintain this amount in an FD (Fixed Deposit). RBI will verify this deposit amount with the concerned banks.

Documents Required for NBFC License

  • PAN & TAN.
  • Aadhaar card.
  • ID, address, education & qualification proofs of Directors & Partners.
  • Company Incorporation Certificate.
  • Company Address proof.
  • Company Bank statement.
  • Company’s Audited Balance Sheet and Profit & Loss Account.
  • GST registration.
  • Memorandum of Association (MoA).
  • Article of Association (AoA).
  • Brief detail about business activity.
  • Auditor’s report for the complete duration 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 for NBFCs under Companies Act

Once your NBFC in Mumbai has been registered, you need to meet certain provisions, under the Companies Act. Also, the guidelines, circulars, and notifications, from the RBI, issued in the public domain frequently, are applicable.
    • Appointment of Statutory Auditor (practicing CA with 5+ years of experience),
    • Statutory Audit,
    • Tax Audit,
    • ROC Return Filing,
    • GST Return Filing,
    • Income Tax Return Filing,
    • All other Compliances/Returns as may be required by a competent authority.

Compliances for NBFCs by RBI

  • Registration on COSMOS (the RBI portal)
  • C-KYC Registration
  • CERSAI Registration
  • Fair Practice Code Adoption
  • Compliance with KYC Anti-money Laundering
  • Registration with FIU-IND
  • CIC Registration
  • Filling of NBS-9 by using COSMOS
  • Other Secretarial compliances

Penalty of Non-Compliance to RBI Regulations

RBI is authorised to take strict regulatory action if an entity has not obtained a Certificate of Registration (CoR) of NBFC, but still is running a business of loans & advances, accepting deposits or making investments. RBI can impose a heavy penalty or fine. Or the company can even be prosecuted in a court of law. RBI bids the general public, to report any such entity, which does activities of non-banking financial kind, but does not figure in the list of authorized NBFC in Mumbai on the RBI website. Suitable action will be taken for breaching the provisions of the RBI Act, 1934. Furthermore, RBI monitors market intelligence reports, complaints, and exception reports from the statutory auditors of the companies, information received through SLCC (State Level Coordination Committee) 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 these meetings.

Why Choose NBFCLicenseIndia

The process of obtaining the CoR from the RBI is not actually as easy as it sounds. Extra care is essential while filling all details such as banker’s reports, business plan, the proofs of the directors, etc. Special attention is required to ensure that the application and the documents should clear the important parameters set by the RBI.

At NBFC License India, we make sure that all the critical issues of outlining company policies, business strategies, drafting MoA & AoA, etc, are thoroughly accomplished. And NBFC License India can be of immense help during all these complex challenges.

With this team of experts, you can rest assured you would be assisted in all matters. We provide all kinds of company-related services. Not only before and during the registration, but also in all later compliances. Our support also extends to:

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