NBFC Registration in Bangalore

Bangalore is known for It hub and its India most preferred location for Fintech Startup.

  • Company registration with ROC Bangalore
  • Business plan for Fintech NBFC set-up in Bangalore
  • Review of application to be filed with RBI
  • End to end to follow with RBI
  • RBI license for your NBFC

Checklist for NBFC Registration in Bangalore?

NBFC (Non-Banking Financial Companies) is a company registered under the Companies Act, 2013 or any other previous Act. It is a type of company that carries on the business of finance, providing loans and advances, acquiring shares/debentures/stocks/securities, etc.A non-banking financial company is a type of company which has a principal business of receiving deposits under any scheme or arrangement by way of contributions or in any other manner. When a company’s financial assets constitution is more than 50 percent of the total assets and income from financial assets contribution is more than 50 percent of the gross income the company is known to have its principal business, financial activity. A can only be granted a license of NBFC registration if its principal business is financial activity.

NBFCs have their activities are akin to that of banks, they provide loans, make an investment; however, there are many differences between a bank and an NBFC. Unlike banks, NBFCs don’t accept demand deposit, It doesn’t settle loan in part payment, It cannot issue self-drawn checks etc.

Types of NBFC registration in Bangalore  

Asset Finance Company (AFC):  An AFC is a financial institution carrying on its principal business of financing of physical assets supporting productive/economic activity, such as automobiles, lathe machines,  tractors, earth moving and material handling equipment, generator sets, and general purpose industrial machines.

Investment Company (IC): It is a financial institution carrying on as its principal business acquisition of securities, shares, debentures, stocks etc.

Loan Company (LC): LC is a type of financial institution carrying on the principal business of providing of finance by way of making loans or advances or otherwise for any activity other than its own.

Infrastructure Finance Company (IFC): It is a non-banking finance company which deploys at least 75 percent of its total assets in infrastructure loans, and has a minimum Net Owned Funds of Rs. 300 crore, and has a minimum credit rating of ‘An ‘or equivalent and a CRAR of 15%.

Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI): It is a type of Company that provides Financial Services like, Loans, Credit, Insurance, and Savings to small business entrepreneurs and small enterprises.It provides small financial support to people with low income and in rural and semi-urban areas. Micro Finance Companies are eligible to provide a loan or credit of up to 50,000 to small entrepreneurs, enterprises, and people with the low-income group.

What is NBFC Registration Process in Bangalore? 

A company which is incorporated under the Companies Act, 2013 and is working as a finance company or is desirous of commencing a financial business and have a minimum net owned fund of 200 lakh. Can file an application with the Reserve Bank of India in the prescribed format along with necessary documents to register itself as a Non-Banking Financial Company.

The application is filed online. And the required documents are submitted to regional Bank of Reserve Bank of India in hard copy. The application for registration can be submitted online by logging into RBI’s secured website https://cosmos.rbi.org.in. The status of the company can then check on the website of rbi.org.in by keying in the acknowledgment number. While filing the application the applicant shall go through the indicative checklist of the documents required to be submitted along with the application that is available at www.rbi.org.in.

After receiving the application a due diligence is conducted by the Reserve Bank of India. If the Reserve bank of India is satisfied with the application and has ensured that documents submitted are complete and satisfactory, it will grant the license to commence the business of NBFC to the applicant company and give a certificate of NBFC registration.

Once the applicant company gets the certificate of NBFC registration it is good to start its business as a non-banking financial company.

Documents required for NBFC registration in Bangalore  

  • Certified true copy of Certificate of incorporation of businesses and Certificate of commencement of business of the concerned company.
  • Certified copy of up to date Memorandum of Association and Article of Association
  • Certified true copy of Board Resolution in supporting the registration of the company as a microfinance company, along with a declaration that the company will comply with prescribed rules, regulation and compliances directed by Reserve Bank of India for a microfinance
  • Bankers’ report related to dealing made with the company
  • An auditor’s report stating that the applicant company owns the minimum capital required.

Certified copies of educational and professional qualification of all directors and experience certificate in the sector of Financial Services if any.