NBFC Company Registration Process Guide

Step-by-step guide for nbfc registration process

• Step 1: Create a business in accordance with the Companies Act of 2013.
• Step 2: A company's minimum net owned funds should be Rs. 2 crores or greater.
• Step 3: A corporation must have at least one director from the same background.
• Step 4: A good CIBIL score is essential to register as an NBFC.
• Step 5: After that, go to the RBI's official website and fill out an application form.
• Step 6: Submit the necessary papers, as well as an application form.
• Step 7: After we submit an application form, we will be assigned a CARN number.
• Step 8: Submit a physical copy of the application to the RBI's regional branch.
• Step 9: After an application has been reviewed and validated, the company will be issued a licence.

*Apply today for nbfc registration online from MUDS.

NBFC Registration Requirements for NBFC License

The Reserve Bank of India regulates non-banking financial companies (NBFCs) in India (RBI) and authorizes NBFC License. According to RBI standards, an NBFC cannot do non-banking financial operations if it does not have a certificate of registration from a bank (save for NBFCs that are not regulated by the RBI) and does not have Net Owned Funds of Rs. 2 crores.

An NBFC formed under the Companies Act, 2013[1] that wishes to start a non-banking financing company should fulfil the following RBI guidelines:

1. Section 3 of the Companies Act of 2013 requires it to be registered.
2. It must have a minimum of Rs. 2 crores in Net Owned Funds (except for NBFC-MFIs, NBFC-Factors, and CIC)

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, Share Premium Account Balance, Free Reserves, and Capital Reserve. Deduct Revaluation Reserves and the book value of Intangible Assets from Total Owned Funds to compute Net Owned Funds and Balance of Accumulated Loss. If the investment in shares of other NBFCs, debentures, and shares of subsidiaries and group firms exceeds 10% of the capital employed, the investment will be deducted from the Net Owned Funds.

*Consult MUDS to apply for nbfc registration online today.

Documents needed Certificate of Company Incorporation NBFC Registration

1. Detailed information about management, as well as a corporate brochure
2. A company's PAN Number
3. Corporate Identity Number (CIN)
4. Documents concerning the office location/address
5. A certified copy of the Articles of Association (AOA) and Memorandum of Association (MOA) (MOA)
6. Each director's signature is required on the list of directors' profiles, which must be attached.
7. The Company's Directors' CIBIL or credit reports are necessary.
8. A copy of a board resolution certifying that a firm has not engaged in or ceased NBFC activities and will not engage in such activity until RBI registration is granted.
9. A board resolution on the 'Fair Practices Code' must be passed, and a certified copy must be presented.
10. Certificate provided by the statutory auditor certifying that the firm does not hold and does not accept public deposits.
11. A certificate from the Statutory Auditor stating the money possessed as of the date of the application is necessary.
12. It is necessary to provide information on the bank account, loans, balances, credits, and so on.
13. An audited balance sheet and profit and loss statement, as well as the directors' and auditors' reports for the previous three years, must be supplied if appropriate.
14. It is necessary to provide a self-certified copy of a bank statement as well as Income Tax Returns.
15. Information outlining a company's future plans, often for the next three years, as well as projected balance sheets, cash flow statements, and income statements.

NBFC registration fees

NBFC registration fees are categorised into many kinds, which are shown below:

1. A firm must additionally pay fees based on its permitted capital and a few other parameters for the company's MOA (Memorandum of Association) and AOA (Articles of Association).
2. Filling out the Simplified Proforma for Incorporating a Company online (SPICe+) may also necessitate the payment of additional expenses.
3. A preset charge is paid to the MCA for (DIN) Director Identification Numbers. A (DSC) Digital Signature Certificate is required for each director, and hence its development would necessitate the payment of recurring fees.
4. Additional costs must be paid when applying to the registrar.

To know more about nbfc company registration in India, consult online at MUDS.