{"id":42985,"date":"2024-09-23T10:55:33","date_gmt":"2024-09-23T05:25:33","guid":{"rendered":"https:\/\/zolvit.com\/blog\/?p=42985"},"modified":"2024-10-01T18:02:17","modified_gmt":"2024-10-01T12:32:17","slug":"how-to-apply-for-nbfc-registration","status":"publish","type":"post","link":"https:\/\/www.zolvit.com\/blog\/how-to-apply-for-nbfc-registration\/","title":{"rendered":"How to Apply for NBFC Registration?"},"content":{"rendered":"<p><span style=\"color: #808080;\">A non-banking financial company (NBFC) is a financial firm that does not possess a banking licence but can provide consumers with financial goods and services. Loans and advances, stock acquisition, hire-purchase, financing leasing, chit funds, and other financial services are all covered by NBFC registration. An NBFC should always be distinguished from a bank in several ways, including the fact that it cannot take savings or current account deposits, cannot issue checks drawn on itself, and does not provide deposit insurance or credit guarantee coverage to its depositors.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.zolvit.com\/blog\/how-to-apply-for-nbfc-registration\/#Role_of_RBI_in_NBFC_Registration\" data-wpel-link=\"internal\">Role of RBI in NBFC Registration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.zolvit.com\/blog\/how-to-apply-for-nbfc-registration\/#When_is_NBFC_Registration_Not_Mandatory\" data-wpel-link=\"internal\">When is NBFC Registration Not Mandatory?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.zolvit.com\/blog\/how-to-apply-for-nbfc-registration\/#NBFC_Registration_Requirements\" data-wpel-link=\"internal\">NBFC Registration: Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.zolvit.com\/blog\/how-to-apply-for-nbfc-registration\/#Documents_Required_for_NBFC_Registration\" data-wpel-link=\"internal\">Documents Required for NBFC Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.zolvit.com\/blog\/how-to-apply-for-nbfc-registration\/#NBFC_Registration_Step_by_Step_Process\" data-wpel-link=\"internal\">NBFC Registration: Step by Step Process<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Role_of_RBI_in_NBFC_Registration\"><\/span><span style=\"color: #808080;\"><strong>Role of RBI in NBFC Registration<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #808080;\">The Reserve Bank of India oversees and supervises non-banking financial companies. When a company&#8217;s financial assets account for more than 50% of total assets and revenue from financial assets accounts for more than 50% of gross income, it is considered to be in the primary business of financial activity. A firm that meets both of these requirements is required to get an NBFC licence from RBI. The 50-50 test is a popular NBFC licence test.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_is_NBFC_Registration_Not_Mandatory\"><\/span><span style=\"color: #808080;\"><strong>When is NBFC Registration Not Mandatory?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #808080;\">Because they are controlled by other financial sector authorities, the following categories of financial organisations have been exempted from the RBI&#8217;s NBFC registration requirements and NBFC rules:<\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">Housing Finance Companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Insurance Companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Stock Broking Companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Merchant Banking Companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Venture Capital Companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Companies that run Collective Investment Schemes<\/span><\/li>\n<li><span style=\"color: #808080;\">Mutual Funds<\/span><\/li>\n<li><span style=\"color: #808080;\">Nidhi Companies<\/span><\/li>\n<li><span style=\"color: #808080;\">Chit Fund Companies<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"NBFC_Registration_Requirements\"><\/span><span style=\"color: #808080;\"><strong>NBFC Registration: Requirements<\/strong> <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"color: #808080;\">The company should already be registered as a limited company under the Company Act 2013 or the Company Act 1956.<\/span><\/li>\n<li><span style=\"color: #808080;\">The company should have a business financial plan for at least 5 years.<\/span><\/li>\n<li><span style=\"color: #808080;\">A good CIBIL or credit rating<\/span><\/li>\n<li><span style=\"color: #808080;\">The net owned money must be at least \u20b9 2 crores.<\/span><\/li>\n<li><span style=\"color: #808080;\">The assets must be worth at least \u20b9 200 crores.<\/span><\/li>\n<li><span style=\"color: #808080;\">FEMA and capital compliance must be met.<\/span><\/li>\n<li><span style=\"color: #808080;\">One-third of the board of directors should have financial experience.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Documents_Required_for_NBFC_Registration\"><\/span><span style=\"color: #808080;\"><strong>Documents Required for NBFC Registration<\/strong> <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #808080;\">The following documents must be provided in order to get an NBFC licence:<\/span><\/p>\n<ul>\n<li><span style=\"color: #808080;\">In the case of public limited businesses, certified copies of the Certificate of Incorporation and the Certificate of Commencement of Business.<\/span><\/li>\n<li><span style=\"color: #808080;\">Certified copy of the company&#8217;s most recent Memorandum and Articles of Association.<\/span><\/li>\n<li><span style=\"color: #808080;\">PAN\/CIN.<\/span><\/li>\n<li><span style=\"color: #808080;\">CIBIL Data relating to the directors<\/span><\/li>\n<li><span style=\"color: #808080;\">Financial Statements of the previous two years of Board Resolution stating that the firm has not taken any public deposits in the past (specify period)\/does not hold any public deposits as of the date and will not accept any in the future without prior written clearance from the Reserve Bank of India.<\/span><\/li>\n<li><span style=\"color: #808080;\">Certified copy of the Board Resolution for the creation of the &#8220;Fair Practices Code.&#8221;<\/span><\/li>\n<li><span style=\"color: #808080;\">Statutory Auditors Certificate attesting to the fact that the firm accepts\/does not accept\/does not hold Public Deposit.<\/span><\/li>\n<li><span style=\"color: #808080;\">Statutory Auditors Certificate attesting to the net owned fund as of the application date.<\/span><\/li>\n<li><span style=\"color: #808080;\">Authorised Share Capital and the company&#8217;s most recent ownership structure, including the percentages Copy of Fixed Deposit receipt and banker&#8217;s certificate of no lien reflecting amounts in support of Net Owned Funds.<\/span><\/li>\n<li><span style=\"color: #808080;\">Details about bank balances\/accounts\/complete postal address of the branch\/bank, loan\/credit facilities where such services have been availed.<\/span><\/li>\n<li><span style=\"color: #808080;\">The previous three years Audited balance sheet and profit and loss account, as well as directors&#8217; and auditors&#8217; reports, or for the shortest period available (for companies already in existence).<\/span><\/li>\n<li><span style=\"color: #808080;\">Bank statements\/IT returns, which must be self-attested.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #808080;\">In addition to the documentation and information listed above, to acquire an NBFC License additional documentation and paperwork is required. To seek further information about the kind of paperwork necessary for an NBFC License in India, get in touch with the experts at Zolvit right away!<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"NBFC_Registration_Step_by_Step_Process\"><\/span><span style=\"color: #808080;\"><strong>NBFC Registration: Step by Step Process<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #808080;\"><strong>Step 1<\/strong>: Register the company under the Companies Act 2013, or the Companies Act 1956, whichever is applicable. The company&#8217;s net owned funds must be at least \u20b9 2 crores and it should have at least one director from the same background.<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Step 2:<\/strong> Ensure a good CIBIL score as it is essential in order to register as an NBFC.<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Step 3:<\/strong> After that, go to the RBI&#8217;s official website and fill out the application form.<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Step 4:<\/strong> Attach all relevant documentation to the application form.<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Step 5:<\/strong> After submitting the application form, you will be assigned a CARN number.<\/span><\/p>\n<p><span style=\"color: #808080;\"><strong>Step 6:<\/strong> Send a physical copy of the application to the RBI&#8217;s regional branch.<\/span><\/p>\n<p><span style=\"color: #808080;\">Once the application has been verified, your NBFC licenced will be approved or rejected. In order to ensure that you come out victorious in the fight for an NBFC license, get in touch with the experts at Zolvit for professional assistance.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A non-banking financial company (NBFC) is a financial firm that does not possess a banking licence but can provide consumers with financial goods and services. Loans and advances, stock acquisition, hire-purchase, financing leasing, chit funds, and other financial services are all covered by NBFC registration. An NBFC should always be distinguished from a bank in &hellip;<\/p>\n","protected":false},"author":22,"featured_media":42986,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62],"tags":[],"class_list":["post-42985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-incorporation"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/posts\/42985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/comments?post=42985"}],"version-history":[{"count":2,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/posts\/42985\/revisions"}],"predecessor-version":[{"id":43074,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/posts\/42985\/revisions\/43074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/media\/42986"}],"wp:attachment":[{"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/media?parent=42985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/categories?post=42985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolvit.com\/blog\/wp-json\/wp\/v2\/tags?post=42985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}