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NBFC Registration

As its very name implies, a Non-Banking Financial Company (NBFC) is a corporation other than the financial institutions, commercial banks, and co-operative banks, which supports entrepreneurs, business owners, industries, retail traders, investors, etc. in their transaction involving loans, deposits, funds, capital and money market instruments, hire-purchases, leasing, and so on, in a variety of direct and indirect ways. These NBFCs perform reliable and impeccable intermediation, both financial and transactional, between the public and investors and the organizations of the banking and financial sector. Gradually, these NBFCs are being considered as a vital complementary to the banking and financial sector, in every developed and developing economies of the world, including India.

Proper and perfect registration of nbfc is essential for smooth and reliable governance and regulation of its all activities and transactions with public and financial sector, essentially including the instruments of capital and money markets, and to protect well-rounded the legitimate rights and welfare of its investors, depositors, and other clients. Our well-connected service organization with firms, institutions, business organizations, etc., of diverse fields, including legal firms, established in India and other countries of all across the world, offers the complete range of services for prompt, secured, and economical nbfc registration in India and abroad, together with expert nbfc guidelines.

NBFC Regulation Facts

The non-banking financial companies (NBFCs) are generally registered under the provisions for these in the Companies Act, and are strictly regulated by the regulations and dictations of the top financial institution of the country, under the department or ministry of finance.

In India, these NBFCs are registered under the rules and regulations of the Companies Act of 1956, and are governed and regulated by the Reserve Bank of India Act, 1934. Since 6th December 2006, there are mainly three categories of non-banking financial companies exist in India - Asset Finance Company (AFC); Investment Company (IC); and, Loan Company (LC).

For nbfc registration in India, a company must be desirous of dealing these matters and transaction mentioned. These activities and transactions should be different from the activities commonly followed in the spheres of Agriculture, Industries, Sales or Purchases of Real Estate property, etc. Again, such a company or corporation must possess a net minimum fund of worth INR 25 Lakh (which has been raised to INR 2 Crore from April 1999). The nbfc registration for such a company is pre-requisite as per the rules of RBI, if its financial asset involved in its business with people, investors, and companies, exceeds 50% of its total capital asset owned by it.

NBFC Registration Procedures

The nbfc registration procedures are simple but elevated. Any company registered under the Companies Act of 1956, and doing business in the matters and fields mentioned above, must get the Certificate of NBFC Registration from the Reserve Bank of India (RBI). For this, the desirous company must submit application for it in the prescribed format, together with all necessary documents demanded, to the Reserve Bank of India, for consideration regarding the same. These documents are to be submitted in duplicate. After due examination and verification of the facts and matters mentioned through application form and your documents, RBI will grant the certificate of NBFC registration, if the conditions mentioned in the Section 45-IA of the Reserve Bank of India Act of 1934, are fully satisfied by you. Our organization can also help such companies in obtaining the same (NBFC Registration Certificate) in any other country besides India.