What is NBFC Registration in India?

Monisha Chaudhary

| Updated: Jun 12, 2018 | Category: NBFC

NBFC stands for “non- banking financial company”. It provides banking people with services similar to banking like lending money but the company doesn’t require to meet any legal definition of the bank. An NBFC company is incorporated under the Companies’ act of 2013 and every NBFC must get a commencement of business certificate from the reserve bank of India. This is defined under section 45 1(a) for the RBI Act. The NBFC shall never commence or ever carry on their business of a non-banking financial institution, not without obtaining the Registration certificate which is issued by the Reserve bank of India. The NBFC Registration in India or the NBFC license takes about 90 to 120 days. In this article, we’ll explore what an NBFC is in India? And what it does? And what to do to register it if you decide to start one or have one?

What is the main Purpose of NBFC Registration?

The main reason and business of an NBFC are to provide loans and advances, shares and debentures and similar things like stocks that are issued by the government or other local authorities, leasing, business insurance and hire purchases etc. On the top of that any NBFC institution that’s incorporated by as a company under the companies act and having the main principal business for receiving their deposits under the schemes or any arrangements in one lump sum or an installment, this kind comes under a non-banking financial company or an NBFC.

The Types of Non-Banking Financial Companies in India.

Following are some of the categories:-

  • An assist finance company
  • The loan company
  • An Investment company
  • A core Investment company
  • An Infrastructure finance company
  • A Mortgage Guarantee company
  • A Housing finance company
  • A Microfinance company.

By the deposits that they hold, the non-banking financial company could be further classified in two more categories.

  • The non-banking financial company accepting the deposits.
  • The non-banking financial company not accepting deposits.

By the size of the minimum capital that is required for the non-banking financial company is classified into the following categories.

  • A Non-banking financial company that is systematically important
  • And the non-banking financial company not systematically important.

What is the Process of NBFC Registration online?

A desiring entity that wants to commence a business of being non-banking financial company would need an NBFC registration procedure. To get an NBFC online registration, you will have to apply to the reserve bank of India for their certificate and license.

They must fulfill the following norms:-

  • It must be a company that is incorporated under the company’s act of 2013.
  • The company applying for NBFC Registration should have a minimum net fund owned by them should be Rs 2 crores.
  • The online application on the RBI website (COSMOS) is available where you shall apply for NBFC Registration.
  • You are supposed to submit a hard copy of the application for online NBFC registration along with the attachments of documents to reserve bank of India office.
  • You will be granted a license only after you are vigilantly inspected for providing correct information and documents.

Feel free to contact the specialists of Swarit Advisors anytime whenever you need, as we have years of experience in handling the legal online process in a quick way. Swarit Advisors is the leading firm which serves its customers by offering legal online registrations related to the government.

Monisha Chaudhary

Experienced Legal and Advisory professional with 5+ years of workings in the field of compliance, statutory governance and licensing, RBI, IRDAI matters etc.

Top Rated CA

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