Non-Banking Financial Company (NBFC) is a company registered under Companies Act and provides banking services without meeting the legal definition of a bank. NBFC requires RBI registration.
Types of NBFC
- Asset Finance Company (AFC)
- Investment Company (IC)
- Loan Company (LC)
- Infrastructure Finance Company (IFC)
- Micro Finance Institution (MFI)
- Infrastructure Debt Fund (IDF)
Requirements for NBFC
- Minimum Net Owned Funds: ₹2 crores
- Minimum 3 directors
- Company must be registered with MCA
- Financial activities should be 50% of total income
Documents Required
- Certificate of Incorporation
- MOA and AOA
- Board Resolution
- Business plan and financial projections
- Directors' KYC documents
- Net worth certificate
- Audited financial statements
Registration Process
- Company incorporation with MCA
- Minimum capital of ₹2 crores
- Preparation of business plan
- Application to RBI for NBFC license
- RBI scrutiny and inspection
- Certificate of Registration from RBI
Ongoing Compliance
- Maintain minimum NOF
- Statutory returns to RBI
- Audited financial statements
- CRAR (Capital to Risk Assets Ratio) compliance
- KYC and AML compliance
Time Required: 6-12 months (including RBI approval)
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