What Is the Process of NBFC Registration In Bangalore?

For a startup or entity desirous to be registered as NBFC in Bangalore, following steps are required to be taken.

What is Non banking Financial Company (NBFC)?

A Non-Banking Financial Company (NBFC) is the company engaged in the business of following:

· Dealing in Loans and advances,

· Acquisition of shares/stocks/bonds/debentures/securities which are issued by Government or local authority or

· Other marketable securities say leasing, hire-purchase, insurance business, chit business.

Excluding: Any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.

Note that in case a non-banking institution which is a company and has principal business* of receiving deposits under any scheme in whatsoever manner either in installments or, is also a non-banking financial company (Residuary non-banking company).

The application is filed online. And the required documents are submitted to regional Bank of Reserve Bank of India in hard copy in Banglore.

Websites for application, status check and offline documents submission:

· For application filing-website https://cosmos.rbi.org.in.

· For status of the company-website of rbi.org.

(in by keying in the acknowledgment number.

· For offline document submission- www.rbi.org.in. For attachments* to be uploaded

along with Application follow www.rbi.org.in → Site Map → NBFC List → Forms/ Returns. This shall include the application form along with a checklist of documents to be attached.

What is the procedure for NBFC Registration in Bangalore?

For NBFC registration in Bangalore, an entity shall apply to RBI for the license (CoR) and must also fulfill the following below mentioned norms:

· It must have incorporation certificate.

· Registration is to be done in accordance with section 45-IA of the RBI Act, 1934.

· It must have minimum net owned funds of INR 2 crores.

· Submission of hard copy of the application along with attached documents shall be submitted RBI Office situated in Bangalore.

· Once both online and offline application and document submission is done, it will be scrutinized and after vigilant inspection of the application and documents attached with it the registration shall be granted.

What is the Online Procedure?

What is the Offline procedure (Document submission)?

After filing of an online application the indicative checklist of the documents is required to be submitted which is available at the website of RBI.

What are the documents required for NBFC registration in Bangalore?

· Certified true copy of Certificate of incorporation of businesses and Certificate of commencement of business of the concerned company.

· Certified copy of up to date Memorandum of Association and Article of Association

· Certified true copy of Board Resolution in supporting the registration of the company as a microfinance company, along with a declaration that the company will comply with prescribed rules, regulation and compliance directed by Reserve Bank of India for a microfinance Company Registration.

· Bankers’ report related to dealing made with the company

· An auditor’s report stating that the applicant company owns the minimum capital required.

Certified copies of educational and professional qualification of all directors and experience certificate in the sector of Financial Services if any.