NBFC REGISTRATION STEPS, PROCESS AND PROCEDURE

INTRODUCTION

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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