Fascinating NBFC Registration Process That Can Help Your Business Grow By NBFCWala

NBFC stands for Non-Banking Financial Corporation. If you are interested in getting an NBFC registration then this blog will help you.

Let's start the journey!

What is the NBFC Registration?

NBFC registration carries on its operations under the guidelines of the Reserve Bank of India (RBI) which governs its operations. NBFC is a company incorporated under the Companies Act, 1956 or the Companies Act.2013 which is engaged in financial activities comparable to that of a bank. NBFCs are financial institutions that provide banking services without meeting the legal definition of a bank.  NBFC can raise funds from the public directly or indirectly or can freely lend them to spenders. NBFC advance loans to the various small, wholesale and retail traders as well as self-employed persons.

Benefits of NBFC Registration

There are numerous benefits of NBFC Registration. List of the benefits of NBFC Registration is given below:

1)  Quicker Processing - Most NBFCs require minimal documentation to sanction loan amount. You have to only check your eligibility for the desired loan and after submission of all necessary documents within a short time, you can get the loan amount.

2)   No strict rules and regulations - As NBFCs fall under Companies Act, 2013, the rules and regulations for lending loan are not so tough as compared to the banks.

Online NBFC Registration Process in India

We will discuss step by step process for registration of NBFC

1)   Applicant company must be a company incorporated under the Companies Act, 2013

2)   The applicant company applying for NBFC Registration Process must have a minimum capital of Rs. 2 crores;

3)  Applicant Company seeking for NBFC registration has to file an online application on the RBI's (Reserve Bank of India) website. The website is known as (COSMOS).

4)  After submission of application, the applicant will get a Company application reference number (CARN) for further inquiry in the future.

5)   After that within a prescribed period of time, an applicant company needs to submit the duplicate hardcopies and necessary documents to the concerned regional office of the RBI.

6)  The regional officer will verify the accuracy of all submitted documents. After verification of documents and after getting satisfied, the regional office will send the application to the Central office of RBI.

7)   The central office will grant the NBFC registration only when it feels that the Applicant Company fulfills all the prescribed things.

Documents required for NBFC registration

List of documents required for NBFC registration is given below:

1) Certificate of company incorporation

2) A bank account with a minimum paid up equity share capital of Rs 2 crore

3) MOA and AOA of the company

4) Well audited financial accounts of the company

5) Board resolution passed for NBFC registration

6) A brief documentary details about the company's works and activities during the last three years.

Conclusion:

NBFCs are financial institutions that provide banking services without meeting the legal definition of a bank. NBFCWala is a leading company which provides services related to NBFC registration. To know more about NBFC registrations kindly contact us.