What is Non-banking Financial Corporations?
A NBFC provides banking and some other lending assistance without fulfilling the legal structure of a financial institution. NBFC’s are registered under company Act, 2013 or corporations Act, 1956 (vintage). Each NBFC has to obtain license/certificates from RBI as defined in ACT 45 I (a) of the RBI Act. A company can obtain NBFC registration or NBFC License in 90 days. Get Expert help on NBFC Registration Process in India, NBFC rules, act, eligibility, fees, and documents procedure.
What is the Procedure for NBFC License in India – How to Register NBFC with RBI in India?
The Reserve Bank of India controls and directs Non-Banking Financial Companies which are into the important business of loans or assistance in stocks, bonds, or money related lending.
Step 1: Company registration: The applicant’s company must obtain the incorporation certificate under the Companies Act, 2013 or the Companies Act, 1956 from MCA. Only Private or Public Limited Company is eligible for MBFC license.
Step 2: Online registration on COSMOS: The applicant must apply online first and then submit a physical copy of the application along with the required documents to the Regional Office of the Reserve Bank of India.
Step 3: After online submission, the applicant Company will be allocated a CARN number, company will receive a Company Application Reference Number for the CoR (Certificate of Recognition) application filed online.
Step 4: Once done with online submission and allotment of CARN number, the applicant company must send online application along with the supporting documents to the regional office.
Step 5: Issuance of NBFC License/certificate after cumbersome scrutiny of application by RBI officials and everything found to be correct, the Head Office of RBI will, then, issue the NBFC license.
Note:- To check the current status of application, the applicant can check the status of the application by keying in the acknowledgment number
NBFC Registration Fees in India: Everything about NBFC Registration Fees
Government fee for NBFC registration is around Rs.3.5 Lakhs. In addition to this, there is a consulting fee of Rs 6-10 lakhs charged by consultants hired by you to complete the end to end process of NBFC registration. In total it costs around 10-14 lakhs to register an NBFC company in India, which included company registration as well as getting license from RBI.
Key things to consider before planning to start an NBFC Company:
It is compulsory to register a company before applying for RBI NBFC License.
For RBI permit, it is mandatory to have a net owned funds Rs.2 crore (Rs.5 crore for microfinance business).
The success rate for getting RBI license depends on the profile of the promoters.
There are different sub-categories of NBFC’s, once must explore thoroughly about types of NBFC once should go ahead with.
NBFC can’t accept cheques until and except if it has been explicitly approved by the Reserve bank of India.
Important Role of NBFC Consultants in Obtaining NBFC License in India from RBI
NBFC registration is a cumbersome job and the failure ration is on higher side. It’s an effort of 90 days and that to with committing any error in filing, business plan, documentation and financial projections. It’s advisable to hire an NBFC consultant as they have prior knowledge and already have an experience of delivering the same services.
Everything about NBFC Registration Process in India
NBFC is the life line of Indian economy to fulfil small scale demands. NBFC’s offers similar services like a bank does, which includes offering credits, giving loans, any other money related services etc. Banks are not present everywhere in Indian economy to fulfill financial demand. Thus, there’s a major requirement for banking services in numerous zones in India. With the expanding curiosity for credits and advances, NBFC Registration Process in India is developing and emerging at an extraordinary pace. NBFCs are grouped into two classifications:
Is NBFC Company Registration Different from NBFC Registration?
A Non-Banking Financial Company (NBFC) is an organization registered under the Companies Act, 1956 deals with the business of credits and advances, assistance in offers/stocks/securities/debentures/securities issued by Government. NBFC company registrations includes setting up a company under company act and they obtaining NBFC license from RBI, but NBFC registration is related to obtaining License from RBI.