• +91-9711101954 , 011 4566 1655 / 1656
  • oneclickbusinesssolutions@gmail.com
 
OneClick Business Solutions

REGISTER A NBFC COMPANY

Keynotes on NBFC Registration

NBFC in 10 to 15 days.
Completely online service - No physical presence required
No minimum capital requirement

NBFC REGISTER

Apply Here





Business Registration and Formation of NBFC

NBFCs (Non-banking Financial Companies) are financial organizations involved in different financial services but they do not have a banking license. Do you want to know how to register NBFC for business registration and setup? One Click Business Solutions Private Limited offers quickest NBFC registration services to its clients. You may contact us to speak with our qualified and experienced NBFC registration consultant and know more about the registration procedure.

We at One Click Business Solutions Private Limited provide our clients with affordable NBFC registration services. At our company, we have experienced professionals to prepare, file and process NBFC registration documents properly. They are well-versed in the procedure of NBFC registration and business setup. You may contact us to know more about the cost of NBFC registration services.

Our professionals are acquainted with online registration procedure of NBFCs. You may contact us to incorporate your start-ups and commence the business in quick turnaround time. Get in touch with us to know more about affordable fees of NBFC registration services. We are also aware of online procedure to accelerate NBFC registration process and help our clients to register and establish their business.

What is called a NBFC?

A NBFC (Non-Banking Financial Company) is such a company which is incorporated under the Companies Act 1956 or Companies Act 2013. Although NBFC Companies do not have a banking license yet, they are involved in different financial services. The services include the following :

Asset Financing

Loan and credit facilities

Hire-purchase

Acquisition of stocks/shares/ bonds

Chit business

Insurance business

Peer to peer lending

Currency exchange

Hedge funds

If a company is involved in following activities, then it is not considered a NBFC. The activities include :

Industrial activity

Agriculture

Providing any services and purchase / sale /production of immovable property

Purchase/sale of any products

Types of NBFC

Currently, different types of NBFCs are operating in India :

Depending on the authorization to accept deposits NBFCs are of following types :

Type 1 - Deposit taking

Type 2 – Non-deposit taking

ND is suffixed to the name in case of non deposit taking NBFC

If amount of total asset of any NBFC is Rs 100 crore then it is categorized under Systematically Important NBFC. This is due to their role to carry the responsibility of the financial stability of the country.

At One Click Business Solutions, we will provide you with assistance in NBFC registration, NBFC Fintech Business Plan, NBFC software and end to end support to register and manage NBFC companies in India.

We have a vibrant team of IT professionals who have ample of experience to offer support of NBFC software registration to our clients.

Depending on their activities NBFCs can be categorized further

Asset Finance Company –
These companies finance the assets of a firm like automobiles, machines, material equipment, generators, industrial machines and others

Loan Companies –
The main business is to deal with loans and advances provided that the loans are not for assets. It is for other reasons like working capital finance and others

Investment Company –
Deals in securities

Systematically Important Core Investment Company (CIS-ND-SI) –
When a company has aassets worth Rs 100 crore or more and arranged 90% of its assets in loans or debt instruments in group companies then it is called Systematically Important Core Investment Company (CIS-ND-SI). It should be in equity shares or can be converted into equity shares compulsorily.

Infrastructure Finance Company –
A company owns minimum Rs 300 crore and arranged 75% of total assets in infrastructure loans are called an Infrastructure Finance Company. It includes a condition which denotes that the same should have a credit rating of or above 15%

Non-Banking Financial Company –
Non deposit taking NBFC that have minimum 85% of its assets in the type of microfinance

Infrastructure Debt Fund (IDF-NBFC) –
Main investment in infrastructure sector. These funds are vital for the country because they are difficult as compare to other type of funds. This is due to its important need, long-term need and long gestation tenure

If you want to know more information about NBFC software, it is recommended to search by the phrase how to register NBFC software on the Internet.

Difference between NBFCs and Banks

A number of differences are there between NBFCs and Banks. They are as follows :

NBFC companies cannot accept demand deposits as they do not have authority to do so

Provision of Credit Guarantee Corporation and Deposit Insurance cannot be accessed by depositors of NBFC companies

Furthermore, NBFCs are not included in payments and settlements systems and it do not have authority to issue cheques on itself

Pre-needs of NBFC

Registration of a company must be as per the provisions, rules and regulations stated in the Companies Act 2013 or the previous Companies Act 1956.

Registration must be under the section 3 of the Act

Minimum 1/3 of the directors must be experienced in Finance

It should have at least a net owned fund of Rs. 2 crore and not be the borrowed fund. (The minimum owned fund is different in case of other particular NBFCs like NBFC Factors, NBFC-MFIs, CICs, as it is determined according to the type of NBFC.) A gift from the spouse is deemed to be owned fund

There must be a thorough plan for the next 5 years

NBFCs as sponsors of IDF-MF

In this circumstance, the minimum owned fund should be Rs.3 crore, CRAR of 15% and NPA not exceeding 3% of net advances

Besides, the company must have existence for the last 5 years and profitable in last 3

One Click Business Solutions is the best NBFC software company in India where we work on state-of-the–art platform in order to assure fastest NBFC registration without any legal hassle.

Registration Process of NBFC

Non-banking Finance companies play an important role to fulfil the credit gap made by the banks. Besides NBFCs offer fast loan by using enhanced technology as compared to the banks.

NBFC registration Process is governed by the Ministry of Corporate affairs with rules and regulations of the Reserve bank of India circulated from time to time.

Step 1 - Experienced professionals like CA/CS/Lawyers/Ex-Banker are hired and suggested team size of the consultants should be more than 100

Step 2 - Qualify Eligibility Test - Based on his experience, NBFC Advisor is expected to perform in eligibility regarding RBI Act

Step 3 - Company Registration (Recommended authorize share capital Rs. 2.5 Crore), open bank account and apply for GST Number

Step 4 – Appointment of auditor – According to instructions of RBI, auditor needs to have knowledge of RBI Act and experience in NBFC audit

Step 5 – Formation of Board of Directors (Accurate formation of Board facilitates easy NBFC License)

Step 6 - Select accurate type and customer interface option

Step 7 - Make advanced business plan with the help of NBFC professionals

Step 8 - Set up capital of Rs. 2 Cr and make fixed deposit of Rs 2 cr

Step 9 - Review of application by professional

Step 10 - Filing of online application

Step 11 – Application should be submitted to RBI office physically

Step 12 – Proactive response to the RBI questions or clarification

Step 13 - Final decision is communicated by RBI within 90 to 120 Days

Step 14 - Filing of start of business to RBI within 6 Months as of the date of grant of NBFC License

Step 15 - Fulfil RBI directions and NBFC regulations circulated from time to time

Documents needed for NBFC Registration

Certified copy of registration certificate -
Certified copy of Certificate of Incorporation (COI), MOA & AOA from the office of Regional registrar of companies

Latest KYC -
Updated KYC along with income proof of Directors and Shareholders

Net worth Certificate -
Obtain latest net worth certificate of Directors, Shareholders, and Company

Clean Banker Report -
Acquire a Banker report showing no issue on the primary fixed deposit of Rs 2 Cr

Proof of Education -
Proof of educational or professional qualification of the directors

Credit report of Directors and shareholders –
Up-to-date credit reports of directors and shareholders

Experience in the Finance Field -
Minimum one Director's profile with more than 10 years of experience in the financial services sector must be submitted

Underwriting model -
Detail action plan about the fair practice code, loan products, risk assessment policy and credit should be submitted.

Organization Matrix -
Need to mention structure of organizations and decision-making procedure for approval or rejection of a loan application

System and IT Policy -
Information technology policy should be submitted

At One Click Business Solutions, we give the best support to accomplish NBFC software registration online and facilitate quick start of the proposed NBFC Company.

Advantages NBFC Registration in India

The Reserve bank of India completely controls financing business in India. NBFC registration offers many benefits. A Registered NBFC can acquire the confidence of borrowers and it provides you with the security of capital invested in the business

Protection of personal liability of the Owner and it also protects from other legal and business risk

Inexpensive registration process

Easy to increase investments in NBFC

Attracts new borrowers

Open interest rate

Processing fees can be charged freely

Allowed up to 100% FDI

Access of CIBIL – Borrowers be scared about meagre credit score and therefore minimum default

Easy Bank Finance

Protection by law in order to recover loan

Quick processing of loan

Simple eligibility criteria

Loan, investments and assets financing in one single license

Fewer rules and regulations

Coverage across India – You can operate across India with NBFC License thus no need to get approval from the local authority

Record expansion in retail Loan - 46% in 2018

DSA Agents can be appointed by NBFC

1000 branches can be opened by NBFC without any further approval from RBI

Frequently Asked Questions

Ques: What is called NBFC registration?

We provide NBFC registration service for you to register a Non-Banking Financial Company (NBFC). This company is involved in providing financial services only such as offering loan or credit to other institutions.

Ques: What is the registration procedure of NBFC?

NBFC Registration Process is given below :

Step 1 - An online application is to be uploaded in the prescribed format containing information about the required documents and enclosures, that generates a Company Application Reference Number

Step 2 - A hard copy of the aforementioned application with required documents and enclosures to the approved regional office of the RBI

Step 3 – Once submitted application and documents are verified and approved, the application is sent by the regional office to the central office of RBI. Subsequently a thorough examination is done to grant the Certificate

Step 4 - The Certificate will be granted if the terms and conditions under section 45-I A of the RBI Act, 1934 are completely satisfied

Ques: What is the cost of NBFC registration Procedure?

Government fees along with service charge for professional assistance is payable as the cost of NBFC registration.

Ques: What documents are required for NBFC registration procedure?

Following documents are required for NBFC Registration in India :

Company Incorporation Certificate

Documents associated to the administration and management of the company

The MoA and the AoA of the proposed company

Detailed information about directors or partners

Board Resolution supporting NBFC formation

Documents regarding the location of the company

Bank Account with at least paid up equity share capital of INR-2 Crore

Accounts of the company accurately audited for last three following years

Income tax PAN

Other applicable documents should be produced on request

Ques: What is called Net Owned Funds of NBFC?

Paid up equity share capital and free reserves are added according to the latest balance sheet of the company and deducting the subsequent items from it.

Ques: What is known as Net Owned Funds of NBFC during takeover?

Entire management must be surrendered to the acquirer and the outstanding consideration, if any, shall be paid off within 31 days of the public notice in the newspaper or as jointly agreed by all the parties.

As a consequence of the takeover, all assets of the target company, shown in the balance sheet are liquidated and liabilities are paid off.

Due to this, acquirer gets a clean bank balance in the company's name that is calculated by net worth as on the date of the takeover.

Ques: What are the sources of funds for NBFCs?

Funds are raised by NBFCs from diverse sources like :

Financial institutions such as banks, public deposits and insurance companies, (only for NBFCs having license to get deposits from RBI)

By issuing debentures

Commercial documents and other inter-corporate loans

There is a steady growth in the percentage of investment of the insurance companies in the NBFCs.

Ques: What are the penalties to take deposits without authorization?

If an NBFC is noticed taking public deposits without approval, then it would be taken as a criminal offence. They are liable to be treated under the Protection of Interest of Depositors Act or under Criminal Law.

Ques: Is it compulsory to register a NBFC with RBI?

Yes, in order to carry lending or investment business, it is essential to get it registered.







OneClick Whatsapp Chat