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NBFC Registration

MUDS has been detrimental in the success story of 300 NBFCs by helping them through the entire process of incorporation/compliences. We add value to our services by developing and deploying the most effective solutions for our clients. Click to know the NBFC registration process.t<br><br>https://www.muds.co.in/nbfc-registration/

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NBFC Registration

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  1. NBFC Registration NBFC Registration PROCEDURE AND LICENSE WITH RBI IN INDIA

  2. DESIROUS OF EXPLORING THE NBFC DESIROUS OF EXPLORING THE NBFC SPACE? SPACE? RAPIDLY-GROWING INDIAN ECONOMY HAS PROVIDED AN EXCELLENT OPPORTUNITY TO NBFCs NBFC DO NO HOLD BANKING LICENSE BUT THEY OFFER ALOMOST EVERY SERVICES THAT BANKS DO BANKING SERVICES ARE NOT CAPABLE OF FULFILLING THE FINANCIAL NEEDS OF ALL THE CITIZENS. NBFCs HAVE GROWN AT A REMARKABLY BECAUSE OF THEIR CUSTOMER FRIENDLY APPROACH, GREAT FLEXIBILITY AND AN ATTRACTIVE RATE OF RETURNS. SERVICES INCLUDE ACCEPTING DEPOSITS, OFFERING LOANS, PERFORMING FINANCIAL INTERMEDIATION, OFFERING CASH ADVANVCES, LEASING, HIRE PURCHASE, etc. ◂ ◂ ◂ ◂ ◂ ◂ 1 1 ◂

  3. WHO IS THE REGULATORY AUTHORITY WHO IS THE REGULATORY AUTHORITY OF NBFCs? Reserve Bank of India (RBI) OF NBFCs? Reserve Bank of India (RBI) ◂ Within the framework of the Reserve Bank of India Within the framework of the Reserve Bank of India Act, 1934. From time to time, the RBI issues Act, 1934. From time to time, the RBI issues guidelines and directions to be followed by the guidelines and directions to be followed by the NBFCs. NBFCs. ◂ Section 45 Section 45- -IA mandates that no NBFC shall begin or IA mandates that no NBFC shall begin or carry on the business of a Non carry on the business of a Non- -Banking Financial Institution without obtaining a certificate of Institution without obtaining a certificate of registration (COR) from the RBI registration (COR) from the RBI Banking Financial 2 2

  4. Areas of Business Areas of Business of NBFCs of NBFCs • Loans and Advances • Insurance Business • Chit Business • Hire-Purchase • Leasing • Acquisition of Shares

  5. SERVICES THAT NBFCs CANNOT OFFER SERVICES THAT NBFCs CANNOT OFFER ◂ SALE/PURCHASE/CONSTRUCTION OF IMMOVABLE PROPERTY ◂ INDUSTRIAL ACTIVITY ◂ PURCHASE/SALE OF ANY GOOD ◂ AGRICULTURAL ACTIVITY 5 5

  6. DIFFERENT CATEGORIES OF DIFFERENT CATEGORIES OF NBFCs REGISTERED WITH NBFCs REGISTERED WITH RBI RBI ◂ Micro Finance Institution ◂ Systematically Important Core Investment Company ◂ NBFC Non Operative Financial Holding Company ◂ Infrastructure Finance Company ◂ Investment/Loan Company

  7. Procedure of Registration of NBFCs Procedure of Registration of NBFCs First formality is an incorporation of the applicant First formality is an incorporation of the applicant company unde rthe Companies Act, 1956 or 2013, company unde rthe Companies Act, 1956 or 2013, with Minimum Net Owned Fund of INR 2 Crore with Minimum Net Owned Fund of INR 2 Crore (Equity Share Capital & not Preferance Share (Equity Share Capital & not Preferance Share Capital). Capital). Therefafter, the applicant company needs to open a Therefafter, the applicant company needs to open a Bank Account and keep the entire sum of INR 2 Bank Account and keep the entire sum of INR 2 crores in the bank’s deposit account, which should crores in the bank’s deposit account, which should be free from the liens. The applicant is then required be free from the liens. The applicant is then required to apply for registration online on RBI’s official to apply for registration online on RBI’s official COSMOS website. COSMOS website. 7 7

  8. Procedure of Registration of NBFCs Procedure of Registration of NBFCs Post Submission of the form, CARN (Company Post Submission of the form, CARN (Company Application Reference Number) is generated that is Application Reference Number) is generated that is helpful in future references. Hard copies of all the helpful in future references. Hard copies of all the documents are required to be submitted to the documents are required to be submitted to the concerned Regional Office of RBI. concerned Regional Office of RBI. The Regional Office shall scrutinize the authenticity The Regional Office shall scrutinize the authenticity of the documents and on being satisfied, shall of the documents and on being satisfied, shall forward it to the Central Office. The Central Office of forward it to the Central Office. The Central Office of the RBI grants the NBFC registration only after the the RBI grants the NBFC registration only after the fulfillment of all prescribed requirements by the fulfillment of all prescribed requirements by the company under section 45 company under section 45- -IA,of its Act of 1934 IA,of its Act of 1934 8 8

  9. List of Important Documents List of Important Documents ◂ Certificate of Incorporation (Certified Copy Issued by ROC) ◂ Extract of Main Clause in MOA (Clearly depicting Financial Business). ◂ Board of Resolution stating the following before getting registration from RBI ◂ Adherence to the “fair Practices Code (as per the RBI guidelines) ◂ Non-carrying out any NBFC activity. ◂ Non-carrying out of acceptance of any public deposit ◂ Audited balance sheet and profit & loss account along with the directors and auditor’s report (for the entire period of the company’s existence or last 3 years, whichever is less). ◂ Director’s Highest Educational & Professional Qualification (Cope of Certificate) ◂ Director’s experience in the Financial Services Sector, including the Banking Sector (Copy of Certificate). ◂ Details of deposits & loans balances as on date of application & conduct of account (Bankers report) 9 9

  10. CONTACT MUDS AT THE EARLIEST CONTACT MUDS AT THE EARLIEST FOR A BRIGHT FURURE! FOR A BRIGHT FURURE! For more information: https://www.muds.co.in/nbfc- registration/ The Future of NBFCs in India is secure for The Future of NBFCs in India is secure for many years to come, therefore, the sooner many years to come, therefore, the sooner you capture this space, the better it would you capture this space, the better it would be! be! - Shweta Gupta, Founder and CEO, MUDS 10 10

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