How to Register as NBFC

Step 1: Create a business under the Companies Act of 2013 or the Companies Act of 1956.

Step 2: The company's net owned funds must be at least Rs. 2 crore.

Step 3: The company should have at least one director with the same history.

Step 4: In order to register as an NBFC, you must have a good CIBIL score.

Step 5: Eventually, go to the RBI's official website and complete the application form.

Step 6: Along with the application form, submit all relevant documents.

Step 7: A CARN number will be produced after you submit the application form.

Step 8: Send the application in hard copy to the RBI regional branch.

NBFC Registration Requirements - Enterslice

The Reserve Bank of India controls NBFCs in India (RBI). According to RBI guidelines, an NBFC cannot conduct non-banking financial business unless it has a certificate of registration from a bank (except for NBFCs that are not supervised by the RBI) and Net Owned Funds of Rs. 2 crore.

The following RBI guidelines should be followed by an NBFC incorporated under the Companies Act, 1956 or the Companies Act, 2013 that wants to start a non-banking finance business:

It must be registered under Section 3 of the Companies Act of 2013 or the Companies Act of 1956, whichever is applicable.

It should have a Net Owned Funds requirement of at least Rs. 2 crore (except for NBFC-MFIs, NBFC-Factors and CIC)

Net Owned Funds can be measured using the firm's most recent audited balance sheet. Total Held Funds will be made up of paid-up equity capital, free deposits, share premium account balance, and capital reserve. Deduct Revaluation Reserves, Balance of Cumulative Loss, and the book value of Intangible Assets from Total Owned Funds to arrive at Net Owned Funds. If any investment in shares of other NBFCs, debentures, or shares of subsidiaries and group companies exceeds 10% of the owned funds, the Net Owned Funds will be deducted.

Required Documents for NBFC Registration

• Certificate of Incorporation (Certificate of Incorporation).
• Detailed details on the executive team, as well as a business brochure.
• A copy of the company's PAN/Corporate Identity Number (CIN).
• Documents pertaining to the location/address of the office
• The Memorandum of Association (MoA) and Articles of Association must be certified (AoA).
• A list of directors' profiles must be attached, with each director's signature.
• The company's directors' CIBIL/credit reports are needed.
• A copy of the board resolution certifying that the organisation has not engaged in or stopped participating in NBFC operation and will not participate in any until the RBI grants registration.
• A board resolution on the "Fair Practices Code" must be accepted and a certified copy submitted.
• The legislative auditor issues a certificate claiming that the corporation does not retain and does not recognise the public deposit.

• The Statutory Auditor must issue a certificate stating owned funds as of the date of the submission.

• It is necessary to include information about the bank account, balances, loans, and credits, among other things.
• Audited balance sheet and profit and loss statement, as well as the directors and auditors report for the previous three years, must be submitted if necessary.

• It is essential to have a self-certified copy of the bank statement and income tax returns.
• Information on the company's long-term strategy, typically for the next three years, as well as estimated balance sheets, cash flow statements, and income statements.

For more information about NBFC Visit our official website Enterslice.