• 1800-4198-402
  • + 91-9820907711
Other Services

Finlaw have specialized domain in the following sub segments.

NBFC Registrations

NBFC Merger/Demerger

NBFC Listings in India & Abroad

Prior Approval from RBI for Management Change in NBFC

NBFC Business Re-structuring

NBFC IM & Business Plan

NBFC Takeover & Stake Sale

NBFC Contract Drafting

Non-banking financial companies, or NBFCs, are financial institutions that provide banking services, but do not hold a banking license. These institutions are not allowed to take deposits from the public. Nonetheless, all operations of these institutions are still covered under banking regulations NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding, retirement planning, trading in money markets, underwriting stocks and shares, TFCs(Term Finance Certificate) and other obligations. These institutions also provide wealth management such as managing portfolios of stocks and shares, discounting services

e.g. discounting of instruments and advice on merger and acquisition activities. The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non-bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies.

However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.

Based on their Liability Structure, NBFCs have been divided into two categories :

  • Category ‘A’ companies (NBFCs accepting public deposits or NBFCs-D).
  • Category ‘B’ companies (NBFCs not raising public deposits or NBFCs-ND).
WHAT WE CAN DO

SPECIAL SERVICES

NBFC Licensing

LICENSING .

NBFC Refers to Non-Banking Financial companies. if you are willing to start Lending business you can buy apply for fresh NBFC Registration.

NBFC Microfinance

NBFC / MICROFINANCE.

An NBFC-MFI is defined as a non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956).

NBFC Vs MFI

NBFC VS MFI .

India is a huge country with a large population. Banks, despite having increased their presence have certain limitations...

Accounting & Auditing

ACCOUNTING & AUDITING.

Our full time associate CA and CS will help your society to run as per the Accounting Standard. Our professionals will visit....

Bank Loan To MFI

BANK LOAN TO MFI.

MFI Comes Under Priority section. MFI is basically future of financial inclusion. Thus RBI gives mine importance to MFI.

NBFC & FDI

NBFC & FDI .

As an incorporated entity by incorporating a company under the Companies Act, 1956 through Joint Ventures; or .

FDI FOR YOUR NBFC

LOAN FOR YOUR NBFC

NBFC REGISTRATION OR LICENSING

Non Banking Financial Company is an entity governs and regulates by RBI Act 1934.

NBFC facilitates banking related services like financial services, investment services, risk pooling and contractual savings.

NBFCs offer most sorts of banking services, such as loans and credit facilities. These institutions also provide wealth management such as managing portfolios of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and acquisition activities. The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non- bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies. However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.

What is NBFC?

Non Banking Financial Company is an entity governs and regulates by RBI Act 1934.

NBFC facilitates banking related services like financial services, investment services, risk pooling and contractual savings.

NBFCs offer most sorts of banking services, such as loans and credit facilities. These institutions also provide wealth management such as managing portfolios of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and acquisition activities. The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business. Non- bank institutions also frequently support investments in property and prepare feasibility, market or industry studies for companies. However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.

Opportunities in NBFCs:-

NBFCs can introduce the credit guarantee programme announced by the government likely to boost their fund flow in the economy. NBFCs can open branches anywhere in India and mostly it opens branches in the smaller towns, rural and semi-urban areas and cities to aware general public about the government saving policy, loan structure and all. NBFCs form an integral part of the Indian financial ecosystem. By extending the line of secured and unsecured credit, these companies provide an opportunity to Individuals and businessmen to be a part of economy. NBFCs apart from traditional banks, also understands the customers’ profile and their credit needs. This is why NBFCs are often able to carve their niche based on their customer profile. These customers usually reside in rural area where banking and institutional credit financial services have limited ground presence. Usually, banks often rely on banking and credit history while assessing the loan applications of their customers. Therefore, these new to credit customers do not qualify for a bank loan. To serve this segment, NBFCs have to build the entire machinery in a different way. They need to implement unique models to assess the creditworthiness of applicants and lend them with comparatively less paperwork. For example, some NBFCs lend to micro, small, and medium enterprises basis their invoices due for payment. Such loans are much safer compared to other unsecured loans.

Requirement for NBFC registration

  • COI of the Private limited company or Public limited company
  • Minimum Net owned fund / Paid-up Capital ₹ 2 Crore
  • The high-level business plan for 3 to 5 year
  • Certified copy of up-to-date Memorandum and Articles of Association of the Company.
  • Banker's Report in a sealed envelope of each share holders, Directors and the Company.
  • Auditors report about receipt of a minimum net owned fund.
  • KYC, Income proof (ITR), Net worth Certificate, Credit report, Education proof of All directors and shareholders
  • Business profile of all directors (Including independent banker / Central banker profile )
  • A certificate of Chartered Accountant regarding details of group/associate/subsidiary/holding companies along with details of investments in other NBFCs as shown in the Proforma Balance Sheet

Self-declaration about any penalty imposed by Government authority / Charge sheet/ NI 138 proceeding e.t.c

Registration Process

Any person can take NBFC registration by fulfilling following eligibility criteria.

First step to take NBFC is to register its Company under Companies Act 2013.

  • Minimum 2 Persons act as Director or Shareholders (Shareholder can be a corporate Entity also)
  • Minimum Capital requirement is 2 Crore, means shareholder should have amount of minimum 2 crore to invest in NBFC
  • KYCs of Director or/and Shareholders
  • Address proof for Company registered office address.

Company registration is 15-20 days process. After getting registration Certificate from Registrar of Company, we need to file application to the RBI for NBFC license.

Stages of NBFC Registration

1
STEP

Formation of Company: be it a Pvt Ltd. Company or Public Limited Company with NBFC object and with minimum paidup capital of Rs. 2 Cr.

2
STEP

After incorporation, Bank account opening and Initial capital of Rs. 2 Cr. to be inserted. And the FD creation and receipt of FD is to be provided to us

3
STEP
Drafting of all the documents as per RBI norms.

filing of application online and submission of Hard copies at the RBI Office. This is the first visit to RBI office for the company.

4
STEP

Liasioning with RBI office, submission of additional information documents asked by the RBI office. Multiple visits and follow ups over the months.

5
STEP

Presentation and Meeting with RBI officers

5
STEP

Issuance of registration certificate from RBI and T&C applicability.

NBFC Compliances

As NBFC is regulated with RBI act 1934, apart from ROC and Income tax Compliances, it also needs to do half yearly and annual compliances as per RBI norms. NBFC also needs to take some registrations with CERSAI, CKY and membership with Credit Information Companies and with other entities.

Types of NBFC

NBFC
NBFC REGISTRATION

Procedure for NBFC Registration

1
STEP
Starting Stage

For every NBFC, starting the operation of its business, it is necessary to have a license from Reserve Bank of India. The procedure for NBFC registration begins with registered private or public limited company. But the objective of your registered company is totally financing.

2
STEP
Registration

NBFC registration is important, RBI started regulating the activities of NBFC with the twin objective of ensuring that they sub serve the financial system and do not jeopardize the interest of depositors.

3
STEP
Requirements

If a person wants to register online pokie machines its company as a non-banking financial company with RBI, one application is to be made to the RBI and along with various documents/instructions are to be submitted in duplicate like: -

  1. Minimum NOF requirement of Rs 200 lakh.
  2. The application is to be submitted in two separate sets tied up Properly in two files.
  3. Minimum NOF requirement of Rs 200 lakh.
3
STEP
Documents Needed

Some more documents are also needed along with all these above-mentioned documents, If RBI deems fit that the applicant is satisfying all condition for its fulfilment, then RBI will issue unique NBFC registration number. NBFC registration number is having an excellent value from the legal point of view. NBFC number is also very important for RBI regarding manage and regulate thereon banking financial institutions.

For obtaining proper and secure NBFC license the following are requirement include: -

  • A company registered under Companies Act is given in 2013 or previous Companies Act, 1956
  • You should have minimum net owned funds of INR 2 crore. For investor desirous of setting up an NBFC in India and mostly this amount to be present in company bank account at applying for NBFC Registration in India.You should have a clean CBIL records
  • If total financial flow of your business more than 50% the total capital assets of the company then getting NBFC certificate is mandatory.

Also, application for NBFC Registration can be obtained from the RBI website along with information regarding the document needed. Generally, NBFC License can be obtained in 100 to 120 days. As compared to a previous year now the NBFC formation procedure is much easier.

Type Of NBFC
Type Of NBFC

Why FINLAW?

As a NBFC consultant our team of competent professional’shas expertise in providing assistance for setting up of NBFC and offer various related services to our clients, so they don’t have to make any extra efforts for the formation of NBFC. At Finlaw we provide full services in regard to setting up of NBFC and other requirements needed for it.