What you need to know about NBFC Registration Services In India
Posted: Oct 29, 2016
Finance companies form an important part of the rapidly changing economic scenarios of the country. The registration of a finance company is similar to the incorporation of other business entities with a slight variation as additional compliances are needed with RBI. The central bank authority governs functioning of these institutions under the purview of the RBI Act, 1934. To start the company has to first register as per the companies Act and then apply for the NBFC license by filing an application with RBI. However, for registration as NBFC, the company should also have net-worth of 2 Crore Indian National Rupees (INR).
NBFCs are financial institutions other than banks, performing a number of functions such as making loans, accepting deposits, leasing, meeting credit needs of specified trade sectors. They have an important part in the banking sector with simplified procedures, flexible services, and attractive rates. However, these institutions can only offer rates as permitted by RBI which has recommended ceiling rates for NBFCs.
The reserve bank categorizes NBFCs as per their activities and for the commencement of business, registration is required under the specified category. Broadly, these financial institutions are categorized as deposit and non-deposit accepting NBFCs. In addition, to registration with RBI, these financial institutions also need to maintain annual compliance with the regulator.
For NBFC company registration in India, there are consultants providing the required support which help in getting incorporation as a private or public company and then file for registration with RBI. Once the application is filed in the prescribed format, RBI issues registration once the documents are found satisfying the enumerated conditions. These consultants also provide required support for maintaining annual compliance as may be required depending on the type of NBFC. As the first requirement is to incorporate as a company, the promoters can decide private or public limited for this purpose. Public limited company registration India is a possible choice with the largest structure permitted in the country and also easy to start with a capital requirement of 5 Lakh Indian National Rupees (INR). So, the documents required for registration are a combination of those referred by MCA for company registration and those referred by RBI for NBFCs.
CCV Pvt. Ltd is a renowned consultant for business incorporation services, it also specializes in NBFC registration. CCV has professional competence in offering RBI compliance service with years of experience. As part of the registration, CCV helps incorporate the company and then provides support for obtaining NBFC registration certificate from RBI.
Conclusion: NBFCs are a special class of companies that need RBI registration for the commencement of operations.
Corporate Capital Ventures is a leading brand company in the field of consultancy services that offers legal, financial, and secretarial services having more than 10 years of experience.