NBFC stands
for a non-banking financial company. The NBFC Registration is done
under the companies act. A non-banking financial company is very much
similar to a commercial bank, except for the following differences, have
a look at them that are as follows: -
1) A non-banking financial company can’t accept any demand deposits.
2) A non-banking financial company can’t issue cheque that is drawn to itself.
3) The deposits in NBFC are not insured as they are insured in a bank by the deposit insurance and Credit Guarantee Corporation.
The
non-banking financial companies just like commercial banks, but only
except for the above-mentioned differences do engage in banking
businesses like making of loans and advances or acquisition and trading
of the shares and stocks or bonds and debentures/securities. Also
leasing and hire purchase and insurance businesses or chit businesses.
An NBFC can do all of this except it will not include any particular
institution that has a principal business of agriculture activity or any
industrial activity. It doesn’t also include purchase or sale of any
kind of goods (other than the securities or providing any type of
service and sale or purchase or construction of immovable property.
Also,
a particular company that has a principal business of getting deposits
under any type of scheme or an arrangement in one lump of a sum of an
instalment by the way of their contributors or in any other way is also a
non-banking financial company.
What are the categories of the non-banking financial company?
There
are two types of NBFC Registration. One is deposit taking and other is
non-deposit taking. Both are being further classified based on their
size.
Getting to the NBFC Registration
Now
as per the section 45 — IA of the reserve bank of India act of 1934, no
company is supposed to commence any business of a non-banking financial
company without obtaining the NBFC Registration certificate.
Also, you must have a minimum of net owned funds of Rs 200 lakhs. This
incorporation of the NBFC Registration is incorporated under the section
3 of the companies’ act of 1956. The net owned funds are the final
balance of owned funds minus the amount of investments in shares of the
subsidiary. This includes the companies in the same group and all the
other non-banking financial companies, the book value of debentures,
hire purchases, outstanding loans, lease finance made and deposit with a
subsidiary. All these commence in the same group.
The
owned funds are an aggregate of the paid-up part of equity capital,
preference shares which are also compulsory and convertible into the
equity, the free reserves and balance in shares premium account and the
capital reserves that represent the surplus that’s arising out of the
scale proceeding to the asset which excludes the reserves created by
revaluation of the asset, after the deduction of accumulated balance of
loss.
Application for NBFC Registration
Application
for the NBFC Registration must be made to the regional office of the
RBI with a list of documents that are required to be submitted. Though
financial companies are not regulated by the RBI, it supervises the
companies with financial assets more than 50% of its total assets.
Swarit Advisors can help you to apply for online NBFC Registration in
India. We provide best online legal services to our customers in every
possible means. Our motive is to offer reliable and profound solutions
to our customers whenever they need to. So get in touch with our
specialists, we will help you to prepare your documents and make you
apply for NBFC Registration without any hassle.
0 comments:
Post a Comment