How to get NBFC License in India: Registration Fee, Documents
For several purposes, recycling end-of-life batteries is important. There is currently little hope that profitable processes can be identified, for without significant active research and development for all forms of current, for better understanding you can consult with expert of battery waste recycling
The Non-Banking Financial Company (NBFC) is a financial institution which does not have a banking license but is licensed to provide clients with financial products and services. The NBFC focuses primarily on loans and advances, share acquisition, finance leasing, rent-purchase, chit funds, etc. It is necessary to note that an NBFC can not accept savings and current account deposits from a bank such as NBFC in etiquette, but does not issue deposit checks on itself and its depositors and does not carry a deposit insurance and credit guarantee policy.
NBFCs in India can be classified as follows:
• Asset Finance Company (AFC)
• Lending business (LC)
• Infrastructure Finance Company (IFC)
• Systematically important core investment company (CIC-ND-SI)
• Non-banking financial company — Micro Finance Institution (NBFC-MFI)
• Non-banking financial company — variable (NBFC-factor)
• Mortgage Guarantee Companies (MGC)
• Non-operative Financial Holding Company (NOFHC)
• Investment Company (IC)
• Infrastructure Debt Fund: Non-Banking Financial Company (IDF-NBFC)
How to register with the NBFC
• Step 1: Register the company under the 2013 Companies Act or the 1956 Companies Act.
• Step 2: The Company’s minimum net-owned fund should be Rs. 2 or more crores.
• Step 3: From the same background, there should be at least 1 manager in the company.
• Step 4: To register as an NBFC, a good CIBIL score is required to be submitted.
• Step 5: Then review the official RBI website and fill out the form for the application.
• Step 6: Apply, along with the application form, all the necessary documents.
• Step 7: A CARN number will be generated after submitting the application form.
• Step 8: Send to the RBI Regional Branch a hard copy of the submission.
• Step 9: A license will be issued to the company until the software is reviewed and verified.
Requirements for Registration for NBFCs
All the following RBI guidelines should be followed by the NBFC wishing to start a non-banking fund company under the Companies Act, 1956 or the Companies Act, 2013:
• It should be registered under the Companies Act, 2013 or Section 3 of the Companies Act, 1956.
• It should meet the minimum requirement of Rs. 2 crore net owned funds (excluding NBFC-MFI, NBFC-Factor and CIC)
Net owned funds can be calculated by the firm’s last audited balance sheet. Paid-up equity capital, free reserves, share premium account balance, and capital reserves will constitute a total ownership fund. To calculate, web-owned funds deduct revival reserves, balance of accumulated losses and book value of intangible assets from total ownership funds. If any investment in the shares of other NBFCs or in the shares of debentures and subsidiaries and group companies exceeds 10 percent of the funds owned by them, the Internet will be deducted from the owned funds.
Documents required for NBFC registration
• Certificate of business incorporation.
• Detailed information about management with a company brochure.
• Replication of PAN / Corporate Identification Number (CIN) of the company.
• A list of profiles of managers duly signed by each manager is to be added.
• A copy of the board resolution certifying that the company has not taken or discontinued the NBFC action and will not take any action until the RBI permits registration.
• A board resolution is to be passed on the ices Fair Practice Code and a certified copy of the same is to be submitted.
• Certification issued by the statutory auditor, stating that the company is not making public deposits and does not accept it either.
• A certificate specifying ownership funds as of the date of the program from the statutory auditor is required.
• Information related to bank accounts, balances, loans, credits etc. has to be submitted.
• If applicable, audited balance sheet and profit and loss statement will have to be submitted along with the reports of directors and auditors for the last three years.
• Self-attested copy of bank statement and income tax return is required.
• A description of the future strategy of the organization, usually for the next 3 years, along with the projection of the balance sheet, cash flow statement and earnings statement.
NBFC Registration Fee
The fees to be deposited for NBFC Registration are classified into various types which are mentioned below:
· While registering the firm, a commission is to be paid to the Ministry of Corporate Affairs (MCA) based on the authorized capital of the business.
· A corporation will be required to cover fees for its authorized funds and MOA (Memorandum of Association) and AOA (Association of Associations) based on certain other variables of its firm.
· Simplified PARPA may also require the company to pay certain fees to include the company electronically (SPICE)
· To get the Reserve Unique Amount (RUN) and Director Identification Number (DIN), a predetermined fee has to be paid in MCA
· A Digital Signature Certificate (DSC) is required for each director and thus its construction will demand payment of periodic charges
· The registrar is required to pay an additional fee at the time of submitting the application.
