An NBFC is a short abbreviation used for non banking financial company. These are a kind of financial institutions that provide banking-like facilities and other lending services without having to...
This article will give you information regarding NBFC Registration done process.
Let us now Discuss the NBFC Registration Procedure step by step.
Company Registration: – The first step in NBFC Registration done is applying for the reserve bank of India license. Furthermore, the company you are about to go for Registration is either supposed to be a private limited company or a public limited company. Here any one person company is not allowed to apply. During the process of NBFC Registration, just make sure that the memorandum of association and article of association are drafted very well and in consonance with the terms of the kind of NBFC Registration you are planning to make.
Next is to raise authorized capital and the paid-up capital of net owned funds of Rs 2 crore: – Once you have incorporated your company, your next step would be about raising an authorized capital of an amount of Rs 2 crore into your company. This is because as per the norms of reserve bank of India, no NBFC Registration will be done unless the company has minimum net owned funds of Rs 2 crore. However, it’s not a necessary to invest in Rs 2 crore via the capital. That same amount can also be invested in a combination of part capital and part security premium.
Once you’ve raised the capital, you might as well invest the entire amount here in the form of a fixed deposit. Along with obtaining no lien certificate from your respective bank. The deposit amount is supposed to be Rs 5 crores just in case you apply for a microfinance type of company.
- Submit all the required documents as per the provided checklist for NBFC Registration. Following is a list of few of the documents : –
- Certified copies of the registration certificate.
- Copies that are certified or attested of an extract of the only main objective of the memorandum of association.
- Copy of the company’s board resolution.
- Copy of your fixed deposit receipts and the certificate from the banker about the no lien certificate.
- The report from bankers for the company that’s applying for the NBFC RegistrationCertificate. As you need a strong promoter profile that will describe the promoter’s experience with the company. This promoter’s background is one of the key points that’ll grant you your RBI license.
- Now fill in the online NBFC Registration application on the official RBI website COSMOS.RBI.ORG.IN this application is likely to have a lot of technical fields to fill, here we suggest to take the help of professionals if required. Also, make sure you don’t file the wrong application because it will be rejected straight away.
- Submission of hard copies the regional office of the RBI bank.
- Follow up with the reserve bank of India.
- The step of acceptance or rejection of your application. Here the NBFC Registration application totally depends on the contentment of the reserve bank of India. They may reject your application on the basis of not getting all proper documents so make sure you’ve done your job well at it.
Here is the procedure we have shared with you for NBFC Registration if you are hesitated to work on it all alone then let us know by calling us at Swarit Advisors.