Minimum Mandatory requirements for registration of a NBFC

Applicant should be registered company as per the Rules, Regulations and Provisions of the Companies act, 2013 or the earlier Companies Act 1956.

➲ If a company engaged in the business of any of the above-mentioned fields, produces finance flow from that particular business, which is more than 50% of the total capital asset of the company for any year, the NBFC certificate is mandatory.

➲ The applicant company should have a minimum Net Owned Fund of INR- 2 Crores.

➲ The credit profile of the COmpany, its promoters and directors should not be in a default state.

➲ At least one of the members of the board is expected to have considerable prior experience in Banking or Credit operations.

Note: The Net Owned Fund mentioned above shall be available in Company’s bank account in the form of Fixed Deposit at the time of filing of Application for registration of NBFC.

Documents required for NBFC Registraton

➲ Self-attested documents of Directors, & Shareholders:

• PAN of the Directors

• Aadhar of the directors

• Copy of ITR of the past 3 years

• Net worth statement & Credit report

• Proof of Highest Educational Qualification

➲ If the Company is already incorporated then we would need:

• Certificate of Incorporation of the Company applying for registration

• A copy of the latest Memorandum and Articles of Association of the Company attested by the directors.

➲ Net owned funds of INR 2-3 Crores (Fixed Deposit)(minimum being INR 2 Crores)

➲ Bankers report in a sealed envelope which shall be undisclosed.

➲ Business plan for 3 to 5 years

➲ Auditors report about the receipt of a minimum net owned fund.

➲ A certificate of Chartered Accountant regarding details of group/ associate/ subsidiary/ holding companies along with details of investments in other NBFCs as shown in the Proforma Balance Sheet

➲ Business/ Career profiles of all the directors

➲ Self-declaration by the directors for not being charged with any penal action

Process of Registration of NBFC

➲ An online application is to be made in the prescribed format with information regarding the demanded documents and enclosures, which generates a Company Application Reference Number.

➲ A hard copy of the above-mentioned application along with demanded documents and enclosures to the concerned Regional Office of the RBI.

➲ After the verification and approval of the submitted application and documents, the regional office sends the application to the Central office of RBI, which goes through crucial examination in order to grant the Certificate.

➲ If the terms and conditions under section 45-I A of the RBI Act, 1934 are fully satisfied the Certificate will be granted.