NBFC Company Registration Requirements and NBFC Registration Fees

According to RBI standards, an NBFC cannot do non-banking financial activities if it a) lacks a certificate of registration from a bank (save for NBFCs that are not regulated by the RBI) and b) lacks Net Owned Funds of Rs. 2 crore.

An NBFC formed under the Companies Act, 1956 or the Companies Act, 2013 that wishes to start a non-banking financing company should fulfil the following RBI guidelines:

·         An NBFC License must be taken under the Section 3 of the Companies Act, 2013 or the Companies Act, 1956, as it is mandatory. 

·         It should fulfil the minimum criterion of Rs. 2 crore in Net Owned Funds (except for NBFC-MFIs, NBFC-Factors and CIC).

*If you have any query regarding the NBFC registration process, you can book a free consultation for nbfc registration online with MUDS Management. 

Net Owned Funds may be computed using the firm's most recent audited balance sheet. Total Owned Funds will consist of Paid-up Equity Capital, Free Reserves, Share Premium Account Balance, and Capital Reserve. Net Owned Funds are calculated by subtracting Revaluation Reserves, Accumulated Loss Balance, and the book value of Intangible Assets from Total Owned Funds. If any investment in shares of other NBFCs, debentures, or shares of subsidiaries and group businesses exceeds 10% of the owned funds, the Net Owned Funds would be deducted.

*If you know more about the NBFC registration process, you can book a free consultation for nbfc registration online with MUDS Management. 

What is the NBFC Registration Fees?

NBFC Registration Fees for NBFC License are categorised into many kinds, which are shown below:

• A charge depending on the authorised capital of the business must be paid to the Ministry of Corporate Affairs when the firm is registered (MCA)
• A business would also be required to pay fees based on the allowed capital and a few other parameters for the firm's MOA (Memorandum of Association) and AOA (Articles of Association).
• Completion of the Short form Proforma for Company incorporation Electronically (SPICe) may necessitate the payment of fees as well.
• The MCA charges a fee for Reserve Unique Numbers (RUN) and Director Identification Numbers (DIN).
• Every director is obliged to have a Digital Signature Certificate (DSC), thus its creation would necessitate the payment of monthly fees.
• When submitting the application to the registrar, additional costs must be paid.

MUDS Management is India’s leading financial consultation company. If you are looking for NBFC company registration to acquire NBFC licence in India, book a free consultation with us for our service NBFC online registration