Since January 1997, acquiring the mandatory NBFC
registration number for establishing a business in any of the
above-specified areas, has been made essential by the RBI. For obtaining proper
and secure registration under any of the three categories of NBFCs, the
following are compulsory requirements:
1. The applicant company
must be perfectly registered as per the rules, regulations, and provisions
given in the new Companies Act of 2013 or the earlier Companies Act, 1956.
2. The company must be
engaged in the business of any one of the above-noted fields. If the total
financial flow in such a business gets more than 50% the total capital asset of
the company in any year, then, getting the NBFC certificate is mandatory.
3. The concerned company
must hold a paid-up capital fund of INR-2Crore (as increased from April 1999),
at the minimum. For foreign companies and investors desirous of setting up an
NBFC anywhere in India, this minimum amount of paid up equity share capital is
INR-5Crore. This recommended Net Owned Fund, ought to be present in company's
bank account at the time of filing application for NBFC registration in India.
The prescribed format for making application for the NBFC
registration is obtainable from the website www.rbi.org.in, along with
information regarding the demanded documents and enclosures.
Filing an online
application with this website, gives a Company Application Reference Number, to
enable the applicant for knowing the current status of the registration
process.
PROCEDURE
In India, the NBFCs are registered and regulated
by the Reserve Bank of India Act, 1934. Our well-seasoned and veteran attorneys
provide all necessary services for NBFC registration in India, during the
entire registration process. The entire NBFC registration procedure in India
encompasses the following broad steps:
1. Formation and Incorporation
of the Company: --- The
desirous company must be registered under the new Indian Companies Act of 2013,
or the earlier companies act of 1956. Our internationally famed company lawyers
also offer the complete gamut of services for registering any new company as
per the new companies act of 2013, for doing business in any or more of the
above-mentioned fields of non-banking financial companies.
2. Minimum Net Owned
Capital: --- The minimum amount of net owned capital or fund which
must be possessed by the aspirant company for NBFC registration in India, is
INR-2 Crore (as raised from April 1999). This paid up equity capital must be
the Equity Share Capital, and not the Preference Share Capital.
3. Opening a fresh Bank
Account: --- This require minimum amount of paid up equity capital
of INR-2 Crore is to be kept in the deposit account of any bank, which must be
free from all liens. Generally such funds are maintained in fixed deposit
account. At the time of making application for getting registration under NBFC,
this essential net owned fund must be present in the deposit account, because
while considering the application for requesting the grant of NBFC
registration, the RBI does verify such deposits of the company with the
concerned bankers.
4. Making Application for
NBFC Registration: --- The aspirant company responsibly needs to submit
online, the completed application form for NBFC registration, to the Reserve
Bank of India, by making access to the RBI's secured website. The applicant
company will then get an application reference number. Afterthis, the company
requires to submit the hard copy of the filed on-line application, together
with the application reference number, in duplicate; along with all demanded
documents, to the concerned Regional Office of RBI. The following prescribed
documents are to be filed along with the main application form for NBFC
registration --- Annexure-I, Annexure-II, and Annexure-III; and contain all
information regarding the incorporation of the company, its MoA and AoA,
documents related with administration and management of the company, location
of the company, well-audited financial accounts of the company, income tax PAN,
etc.
NOTE:
WHAT IS N.B.F.C. REGISTRATION NUMBER?
The NBFC registration
number is absolutely necessary for doing businesses in the above-mentioned
fields by the concerned companies, which is granted by the Reserve bank of
India after proper and flawless registration of the companies under NBFC
categories.
In addition to providing
legal security to the concerned company, this NBFC registration number is
essential for identification of the company, its full-reliability, and for all
tax related calculations.
5. Granting of Registration
Certificate: --- After the application is filed with the concerned regional
office of RBI, the application is censoriously examined, and all the forwarded
documents are critically verified by the regional office, and then, the
application is sent to the central office of RBI, if everything is found
complete and satisfying. The central office of RBI then examines and verifies
all particulars and documents forwarded to him, and then grants the NBFC
registration certificate, if all the conditions described in the Section 45-IA
of the RBI Act of 1934, are properly and fully satisfied by the applicant
company.
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