NBFC Company

NBFC Registration Services | how to apply| India 2020

NBFC registration is a company registered under the Company Act 1956, engaged in the business of loans, finances acquisition of the stocks/debentures/securities, chit business and issuance of insurance. NBFC refers to the Non-Banking Finance Company registration which has the principle aim of receiving deposits under any scheme in one lump sum or by instalments and by way of contribution or any other manner. NBFC India come under the purview of the Reserve Bank of India (RBI).

What is the difference between traditional banks and NBFCs?

NBFCs are primarily involved in lending and making investments, hence their activities are similar to that of banks; however there are a few differences as given below:

  • NBFC cannot accept demand deposits.
  • NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
  • Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks.

NBFCs are primarily involved in lending and making investments, hence their activities are similar to that of banks; however there are a few differences as given below:

  • Asset Financing.
  • Loan and credit facilities.
  • Hire-purchase.
  • Insurance business.
  • Chit business.

Non Banking Finance Corporation brought a revolution in the banking and finance sector. But after an immense growth in the last decade this sector is showing signs of slowdown. It is because of the fiscal interest rate and budgetary deficiency. As many as 779 NBFC company licenses were canceled in the 2019 alone because of the defaulting loan repayment.

What are the benefits of NBFC company registration?

Low cost & Time

Registering a NBFC is considerably easy task as compared to register a small Bank. The cost & time both are excessive in terms of opening a Bank.

Easy Registration

NBFC Registration process is very easy if the consultant you have is experienced and having NBFC Registration experience.

Industry Growth Ratio

At present, the fintech industry is at boom as everyone needs an easy source of funding, it can be an advantage for aspiring Entrepreneurs to register a NBFC and earn good return in Fintech Industry

Easy Recovery of Loans

Since NBFCs are very systematic and they offer considerably less loan amount, therefore, borrowers return the amount easy which makes it convenient for lenders.

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Types of NBFC company

  • Asset Finance Company (AFC)
  • Investment Company
  • Loan Company
  • Infrastructure Finance Company
  • Infrastructure debt fund
  • Non Banking Finance Company- Microfinance Institutions

Documents required for NBFC company registration

  • Incorporation Certificate of the Company
  • Documents related to the Management and administration of the Company.
  • The documents stating the Article of Association and Memorandum of Association of the form or company.
  • Documents verifying the location of the company.
  • Company Account which has been well audited for last three years.
  • Elaborate Information regarding the Director and the Partners associated with the Company.
  • Resolution from the board favoring the formation of NBFC.
  • A bank account with a minimum equity share of INR 2Cr.
  • PAN Card of the Company
  • Additional documents which can be asked at the time of verification.

How to register NBFC Registration

  • For NBFC company registration you can apply online and submit a physical copy of the application along with the necessary documents to the Regional Office of the Reserve Bank of India. The application can be submitted online on the RBI website
  • After visiting the RBI website go on “CLICK” for Company Registration on the login page of the COSMOS Application. A window showing the excel application is available for download would be displayed.
  • The company may note to indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I dentification Particulars” in the Excel application form.
  • Then you would get a (CARN number) company Application Reference Number for the CoR application filed on-line. Thereafter, the company has to submit the hard copy of the application form (indicating the online Company Application Reference Number, along with the supporting documents, to the concerned Regional Office.
  • On successful verification, the head office of RBI will then issue the NBFC license to the applicant.

Frequently Asked Questions