About Non-Banking Finance Company (NBFC)

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or construction of immovable property.

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the [Reserve Bank of India Act, 1934] and the directions issued by it.

Note: Non- Banking finance Company can be formed and operated in the form of Private Limited or Public Limited accordingly their respective requirements will be applicable.

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Our scope of work

    1. Company Formation Private or Public;

    2. Legal Advisory on NBFC formation;

    3. Application to RBI for Registration;

    4. NBFC Business Plan;

    5. End to End Assistance for obtaining the required Registration;

    6. 100% assurance in getting NBFC License.

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Know more about Non-Banking Finance Company (NBFC)

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or construction of immovable property.

 

The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the [Reserve Bank of India Act, 1934] and the directions issued by it.

 

Note: Non- Banking finance Company can be formed and operated in the form of Private Limited or Public Limited accordingly their respective requirements will be applicable.

 

1. Capital:

  • There are 2 types of capital i.e. Authorize Capital (It is the capital up to which Company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
  • The requirement for minimum capital or Net Owned Funds* is INR 200 Lakhs.

*NOF Means The Term ‘NOF’ Means, Owned Funds (Paid-Up Capital And Free Reserves Minus Accumulated Losses, Deferred Revenue Expenditure And Other Intangible Assets) Less, (I) Investments In Shares Of Subsidiaries/Companies In The Same Group/ All Other NBFCs; And (II) The Book Value Of Debentures/Bonds/ Outstanding Loans And Advances, Including Hire-Purchase And Lease Finance Made To, And Deposits With, Subsidiaries/ Companies In The Same Group, In Excess Of 10% Of The Owned Funds.

2. Registered Office:

  • Any place can be made as the registered office of the NBFC even the residential place can be used as the registered office of the NBFC.

Note: Only those NBFCS Holding a valid Certificate of Registration can Accept/Hold Public Deposits.

3. Registering Authority:

  • Ministry of Corporate Affairs 
  • Reserve Bank of India

Obtain DSC (Digital Signature Certificate)

01

Prepare SPICe+ form (Part A – Name availability and reservation request)

02

Prepare SPICe+ Part B form (Company information i.e. directors, shareholders etc.)

03

Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)

04

Download all the e-forms prepare online and affix DSC on all the e-forms.

05

Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.

06

Issue of Certificate of Incorporation by RoC

07

Application to RBI for NBFC License

08

Advantages

Non-Banking Financial Companies (NBFC) can provide loans and credit facilities.
Non-Banking Financial Company (NBFC) supports investments in property.
A Non Banking Financial Company (NBFC) can invest in money market instruments.
A Non-Banking Financial Company can fund private education.
A Non-Banking Financial Company can manage portfolios of stocks and shares. An NBFC can also help in wealth management.
An Non-Banking Financial Company (NBFC) can provide its customers in their retirement planning.
An NBFC prepares feasibility report on the study of market and various industries helping the Companies.

Disadvantages

An NBFC cannot accept demand deposits as it falls within the realm of activity of commercial banks
An NBFC is not a part of the payment and settlement system and as such an NBFC cannot issue cheques drawn on itself.
Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors unlike in case of banks.
Factors of Comparison Private Company Public One Person Company Limited Liability Partnership Partnership Sole Proprietorship
Capital Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:2 Crore Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit
Director Minimum 2 Minimum 3 Minimum 1 - - -
Shareholder Minimum 2 Minimum 7 Minimum 1 - - -
Designated Partner/Parter - - - Minimum 2 Minimum 2 -
Taxation 30%(25% if turnover does not exceed 250 Crore) 30%(25% if turnover does not exceed 250 Crore) 30% 30% 30% As per Slab Rates
Statutory Audit Compulsory Compulsory Compulsory If Contribution exceed INR 25 Lacs; If Turnover exceed INR 40 Lacs Not Required Not Required
Investor Preference High Low Low Medium Very Low Very Low
Compliance Cost Mdeium High Low Low Low Low
Regulator Registrar of Companies SEBI/Registrar of Companies Registrar of Companies Registrar of Companies Registrar of Firms -
Time take for Registration 5-7 working days 5-7 working days 5-7 working days 20-25 working days 10-12 working days 5-7 working days