Arpee Associates Pvt. Ltd.

NBFC Registration Procedure And License With RBI In India

U/S 45-IA mandates that no NBFC shall begin or carry on the business of a Non-Banking Financial Institution without obtaining a Certificate of Registration (COR) from the RBI.

The Areas Of Business Of NBFCs:-

1. Acquisition of shares/ stocks/ securities/ bonds/ debentures issued by the Government or other authorities,
2. Loans and Advances,
3. Insurance Business,
4. Chit Business,
5. Hire-purchase,
6. Leasing.

Eligibility Norms For Registration Of NBFCs

• Company should be registered under the Companies Act, 2013 or Companies Act, 1956
• Company should have Minimum Net Owned Fund of INR 2 crore

(Net Owned Funds to be calculated on the basis of the last audited balance sheet of the Company)

Procedure Of Registration Of NBFCs

• With the application required documents is to be submitted to the concerned Regional Office of RBI.
• The Regional Office shall scrutinize the authenticity of the documents and on being satisfied, shall forward it to the Central Office.
• The Central Office of RBI grants the NBFC registration only after the fulfillment of all prescribed requirements..

Documents Required For Applying for NBFC Registration

Along with the application, there is a long list of documents to be submitted:

1. Certificate of Incorporation and MOA.
2. Board of Resolution
3. Audited Balance Sheet & Profit & Loss account along with directors and auditor's report (for entire period of company’s existence or last 3 years, whichever is less)
4. Director’s Highest Educational & Professional Qualification (Copy of certificate)