Freezing of Folios of physical shareholders... Last date for KYC is 30th September 2023... Act now Ref: SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37


Essential Documents For Non-Banking Financial Company Registration


Essential Documents For Non-Banking Financial Company Registration

A non-banking financial company (NBFC) is a company which is registered under the Companies Act, 2013 or earlier  Companies Act, 1956 involved in the business of loans and advances, acquisition of shares/stocks/bonds/securities issued by the government or local authority or other marketable securities of a like nature.

But does not include any institution whose principal business is that of –

  • Agriculture activity
  • Industrial activity
  • Purchase or sale of any goods (other than securities) or providing any services
  • Sale/purchase/construction of immovable property.

Here is a list of the most significant documents for NBFC registration in India provided to you by MUDS Management

1. Certificate of company incorporation
2. Fixed deposit of  INR 2 crore maintained in Bank account with a minimum paid up equity share capital.
3. Extract of the main object clause in the MOA clearly depicting the financial business
4. A Board Resolution stating adherence to the “Fair Practices Code” as per RBI Guidelines and non- carrying out of the following activities before getting registration from RBI :
5. MoA and the AoA of the applicant company or firm
6. The Audited balance sh meet and Profit & Loss account along with directors & auditors report for the entire period of company’s existence, or for last three years, whichever is less
7. Complete and detailed information of all the Directors of the company
8. Documents related to the administration and management of the company
9. Income Tax Pan of Company and all Directors
10. CIBIL Report of all Directors.
11. Copy of the certificate of Director’s highest educational and professional qualification
12. Copy of Director’s experience certificate in the Financial Services Sector (including Banking Sector);
13. Bankers report depicting details of deposits and loans balances as on the date of application and the conduct of the account
14. Other relevant documents requested as per the needs and requirements

According to the Section 45-IA of the RBI Act, 1934, no company can commence a business of a non-banking financial institution without getting a certificate of registration and without having a Net Owned Funds of Rs 200 lakhs. This is the pre-requisite of a NBFC registration procedure. Net owned Fund will consist of paid up equity capital, free reserves, balance in share premium account, and capital reserves representing surplus arising out of sale proceeds of assets but not reserves created by revaluation of assets. From the aggregate of items will be deducted accumulated loss balance and book value of intangible assets, if any, to arrive at owned funds.

Application for becoming an NBFC must be made in the requisite form to the Regional Office and Mumbai office of the RBI.

Previous Post
Newer Post