NBFC is a form of business entity which carries out banking operations with a limit. NBFC license registration is incorporated under Company Act, 1956 and can operate business activities such as loans, buying of shares, securities, stocks, insurance but NBFC can issue a cheque or accept deposits.
There are a number of NBFC registration consultant in India who will guide you through the complete procedure to register an NBFC in India. The consultants help in document preparation, application filing and RBI approval to start banking operations under name of NBFC.
Documents Required for NBFC Registration
NBFC license registration is issued if the applicant entity submits proper documents required for NBFC registration in India. These documents are submitted along with the NBFC license registration application. Here is a list of all important documents required for NBFC company registration.
- Company incorporation certificate
- MOA & AOA of the company
- Address proof of the company
- Details of directors and partners of the company
- Financial audit reports for three years
- Board resolution in favour of the company
- Details of business activities carried out
- Income Tax, PAN, GST documents
NBFC Registration Fees & Duration
Non-banking financial corporation NBFC license registration fee is dependent on government processing fee, secretarial consultancy charges, GST and taxes levied and various other factors.
The minimum amount required for NBFC registration is 6 lakh INR (approximately|)
It takes at least 90 days to incorporate a non-banking financial corporation which is dependent on the availability of documents required for NBFC company registration.
A business entity has to submit a duly filled NBFC registration form to incorporate a non-banking financial company in India.
NBFC Regulations for Incorporation and Approval
There are NBFC regulations which an applicant is required to follow before applying for NBFC license registration. Here is the list of rules and regulations for NBFC company registration.
- An NBFC can online be registered as a public limited or private limited company.
- A minimum net owned fund of 2 crores is required for NBFC registration.
- NBFC can’t accept deposits like banks.
- NBFC are allowed to charge interest rate more than the RBI ceiling.
- NBFC can’t offer incentives to the depositors.
- Deposits in NBFC is not guaranteed by RBI.
Role and Functions of NBFC in Society
An NBFC can carry out the banking operation after receiving a certificate of registration from RBI.
An NBFC is allowed to carry out loan and finance activities without accepting deposits eligible for repayment on demand.
- Generate economic growth for the country
- Generate more employment opportunities
- Helps in long term financing
- Capital mobilisation
- Financing for small businessmen