NBFC Registration

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act of 2013, which is engaged in the business of providing loans and advances, acquiring shares/stocks/bonds/debentures/securities issued by the government or a local authority, or other marketable securities of a similar nature, leasing, hire-purchase, insurance business, and chit business.

However, NBFCs do not include institutions whose primary business is agriculture, industrial activity, the purchase or sale of goods (other than securities), the provision of services, or the sale/purchase/construction of immovable property.

Furthermore, a Non-Banking Financial Company is a company whose primary business is to obtain deposits under any scheme of arrangement in a lump sum or instalments through contributions or in any other way (like Residuary Non-Banking Company). As a result, any non-banking institution that wishes to engage in such activities should apply for NBFC Registration.

Role and Functions of an NBFC

• To develop sectors like Infrastructure, Education and MSMEs;
• To assist in wealth creation;
• To generate substantial employment;
• To provide financial assistance to the economically weaker section of the society;
• Faster processing loan;
• Digital platform to offer loans using advanced technology;
• To assist in the economic development of the country;
• To contribute to the state exchequer;
• To provide specialised credit;
• To help in the growth of the financial market.

Documents required for NBFC Registration

• Company Incorporation Certificate;
• Detailed information on management along with company brochure;
• Copy of PAN/Corporate Identity Number (CIN) of the company;
• Documents of the location/address;
• A Certified copy of the Memorandum of Association & Articles of Association;
• List of Directors' profiles which should be duly signed;
• Qualification certificate of directors as well as their experience certificate;
• CIBIL/credit reports of the Directors of the Company;
• Board resolution on ‘Fair Practices Code’ and a certified copy of the same;
• Certificate issued from the statutory auditor declaring that the company doesn’t hold any public deposit and does not accept it;
• Certificate specifying owned funds on the date of the application from a Statutory Auditor;
• Shareholder KYC, CIBIL report, ITR and banker report;
• Furnish information on the bank account, balances, loans, credits, etc.;
• Audited balance sheet as well as P&L statement with the directors and auditor’s report of the last three years;
• Self-certified copy of bank statement and ITR;