About NBFC Registration Plan
Well, if you have plans to incorporate an NBFC in India, then Swarit Advisors is a stop destination for you. We are a Leader in offering NBFC Registration and Advisory Services. Our experts hold core expertise and more than 10 years of experience in providing an NBFC License within 90 days.
For Registration, we will file your application, together with requisite documents with the RBI. If everything went fine, the Apex Bank would issue a Certificate of Registration.
Services Covered by Our Experts
- NBFC Incorporation;
- High Level Business Plan;
- Assistance in Market Analysis;
- Preparation of Application for NBFC Registration PAN-India;
- Consultation on Fintech based NBFC Lending Model;
- Advisory on ACS (Alternative Credit Scoring) Model;
- Assistance in Post NBFC Compliances;
- Audit Support Services;
- Legal Advisory on NBFC ;
- End-to-End assistance on meeting RBI and Secretarial Compliances
Who Should Choose this Financial Institution?
Any person who intends to enter the Indian Financial Market must apply for NBFC Registration. Moreover, as per the recent trends, people are choosing NBFCs over conventional banks due to hassle free loan sanctioning process and less documentation.
Further, an NBFC processes the loan request of an applicant faster than the traditional banks. Therefore, over a period of time, this financial intermediary has come out as a preferable choice among the general public.
The process for incorporating an NBFC in India is completely online, and anyone who is having a NOF (Net Owned Fund) of Rs 2 crore can easily apply for NBFC Registration PAN-India.
Benefits of Establishing NBFC Model
The benefits of establishing NBFC Model in India are as follows:
- Low Operational Cost;
- Higher Interest Rate;
- More Customer Reach than Banks;
- Lower Non Performing Assets in comparison to Traditional Banks;
- Usage of Tools like Artificial Intelligence and Machine Learning minimizes the risk of fraud.
Document Required for Setting Up NBFC Model
The documents needed for setting up the NBFC Model in India are as follows:
- Duly Certified Copy of COI (Certificate of Incorporation);
- Duly Certified copy of Memorandum of Association and Article of Association;
- KYC (Know Your Customer) of Directors of the Applicant Company;
- KYC of the Shareholders of the Applicant Company;
- A copy of Qualification Certificates of all the Directors of the Proposed Company;
- Certificate of Net worth for all the Directors and Shareholders of the Applicant Company;
- Bankers Report concerning the no lien remark on the fixed deposit of Rs 2 Crore;
- Credit Report of the proposed directors and shareholders;
- Thorough Action Plan of the proposed NBFC together with the organisational structure
- Latest Financial Statements of the proposed NBFC together with the Directors Report and Auditors Report.
Process for Establishing NBFC Model in India
The steps involved in the Process for Establishing an NBFC Model in India are as follows:
- Registration of Company with the ROC (Registrar of Companies), where the name must showcase the finance related objective of the company;
- The Object Clause under the Memorandum of Association must denote the Finance Business;
- Opening of Current Bank Account with the Scheduled Commercial Bank;
- Thorough Business Plan for the proposed NBFC Model;
- Drafting and Collection of requisite documents as per the guidelines issued by the Apex Bank;
- Submission of the online NBFC Registration Application on the official RBI portal known as COSMOS;
- Physical Submission of all the documents and records at the Regional Office of the RBI;
- Submission of the documents additionally asked by the Apex Bank, and respond to the notice issued by it.
- After a vigilant and detailed inspection of the documents, the apex bank will issue COR (Certificate of Registration) to the proposed NBFC;
- Assistance in acquiring membership from all the top Credit Rating Agencies of India, such as CIBIL, CRIF Highmark, Equifax, and Experian;
- End-to-End assistance in the FIU-IND Registration
Frequently Asked Questions
Q1. What is an NBFC in India?
Non Banking Financial Company or NBFC is a kind of company that offers banking related services without acquiring a banking license and is registered under the Companies Act, 2013. This institution is engaged in providing loans, advances, and acquisition of stock, shares, and debentures. However, an NBFC can accept deposits from the general public.
Q2. What are the Categories of NBFC prevalent in India?
Based on Liabilities
- NBFCs-D (Deposit taking NBFCs);
- NBFCs-ND (Non-Deposit accepting NBFCs),
- Systematically Important (NBFC-ND-SI);
- Other Non-Deposit Holding Companies;
Based on Activities
- Infrastructure Finance Company (IFC);
- Investment and Credit Company (ICC);
- Systemically Important Core Investment Company (CIC);
- NBFC- Non-Operative Financial Holding Company (NOFHC);
- Mortgage Guarantee Companies;
- NBFC- Microfinance Companies (MFIs);
- Infrastructure Debt Fund Non Banking Financial Company (IDF-NBFC)
Q3. Is it Compulsory to Obtain NBFC Registration with RBI?
Yes, NBFCs are administered by the Apex Bank. It issues timely directions and notification for NBFCs. Therefore, it is mandatory to acquire an NBFC license from the apex bank in order to start business operations.
Q4. Why should one choose to incorporate NBFC instead of NBFC takeover?
The apex bank has simplified the procedure for obtaining NBFC registration in India. We recommend you to go for NBFC registration rather than acquiring the existing NBFC through NBFC takeover.
Q5. How are NBFCs different from Banks?
Although both banks and NBFCs provide financial services, we can still differentiate on some criteria. An NBFC cannot accept demand deposits. They are not qualified to form a part of the payment and settlement system. Moreover, an NBFC is not eligible to issue cards.
Q6. Who is the Regulatory Authority for NBFC PAN-India?
The RBI (Reserve Bank of India) acts as the regulatory authority for the NBFC PAN-India. It has the power to issue timely directions and guidelines for the NBFCs.
Q7. Can NBFC be listed on a Recognised Stock Exchange?
Yes, an NBFC is eligible to its shares on an RSE (Recognised Stock Exchange). For example, the Power Finance Corporation Limited has listed its shares in both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).