Are You Looking To Cash In On NBFC Wave?
It is a known fact that in recent years Non-Banking Financial Companies (NBFCs) have performed extremely well.
By filling up the void left by the banks, they have penetrated in the small towns and cities, offering services like loans, acquisition of shares, stocks, debentures and securities, leasing, hire purchase, insurance business, chit business, etc.
The NBFCs are not bound by the strict norms of a bank, yet they are privileged to offer banking facilities and financial services, with a few regulatory restrictions.
There are many types of NBFCs based on the nature of the activity, for example, Microfinance Company, Loan Company, Housing Finance Company, etc.
Know About NBFC Registration Eligibility
The RBI is the regulatory body for NBFCs and hence, they are required to be registered by it and to follow the banking regulations laid down by Section 45-IA of the RBI Act of 1934.
Prior to seeking registration from RBI, the entity desirous of it should fulfill the given criteria:
- A company should be incorporated under the Companies Act, 2013 or Companies Act, 1956
- A company should have a Minimum Net Owned Fund of INR 2 crore
- (Net Owned Funds to be calculated on the basis of the last audited balance sheet of the Company)
NBFC Registration Procedure In Brief
After fulfilling the two above mentioned eligibility criteria, a company can follow the given steps to register:
- The applicant is required to apply for registration online on RBI’s official COSMOS website.
- Post submission of the form, CARN (Company Application Reference Number) number is granted that will aid in future inquiries.
- Subsequently, the company is required to submit the hard copies of all the documents to the concerned Regional Office of RBI.
- The Regional Office shall scrutinize the authenticity of the documents and if satisfied, shall forward it to the Central Office.
- The Central Office of RBI grants the NBFC registration only after the fulfillment of all prescribed requirements by the company under section 45-IA, of its act of 1934.
- Along with this, an exhaustive list of documents is there which has to be submitted along with the application to the RBI.
This Is The Best Time To Seek NBFC Incorporation!
This is the most apt time to venture into NBFC business as the ever-growing demand for financial services has opened up vast space which can accommodate many players.
The Banks can hardly cater to the financial requirements of such a huge population; thus, this space can be occupied by NBFCs. The earlier you enter a segment, the more beneficial it shall be for the company.
The Biggest Factors Working In Favour of NBFCs!
- Simplified norms of doing business give them the upper hand in dealing with customers.
- The flexibility to structure products as per customers’ needs is a sure shot advantage.
- They have a definitive edge over banks as they are free to operate in remotest of places, attracting and capturing new customers.
- Low operative costs ascertain high profits since inception.
- Modern technology assists in not only targeting new customers but also help in identifying their worthiness.
Looking For NBFC Registration In Delhi?
MUDS Consultancy Firm is competent to accomplish all formalities of NBFC registration within the shortest period. Proficient professionals of MUDS have tons of experience over the years to give the best of services in the most cost-effective way.
MUDS has been detrimental in the success story of 300+ NBFCs by helping them through the entire process of incorporation. Give your financial dreams wings to soar high by contacting the exemplary team of MUDS, which has pan India presence.
“NBFCs offering multiple product lines, are sure to witness an astronomical growth in their business!”
-Shweta Gupta, Founder, and CEO, MUDS