NBFC Registration in Gurgaon

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No one can deny the high paced economic growth of Gurgaon. The rise of institutions providing finance and credit to various kinds of entities is proportional to the growth. This explains the institution of new NBFCs in Gurgaon.

A Non-Banking Financial Company (NBFC) is an entity incorporated as a company under the appropriate provisions of law and engaged in financial activities akin to that of a bank, example: the business of loans and advances, acquisition of shares/bonds/securities, leasing, hire-purchase, insurance business, chit business etc. There are some restrictions over the principal business of an entity to qualify as an NBFC.

The functions though are similar to that of a bank, yet there are plenty of differences with respect to the business carried out by NBFCs and traditional Banks. 

Is it required for every NBFC to be registered?

According to the RBI Act, to commence the functions as a Non-Banking Financial Company:

  1. An entity must be a Company incorporated under appropriate laws,
  2. The company must have a Net Owned Fund of minimum Rs. 2 cr.
  3. Obtain a Certificate of Registration from the Reserve Bank of India. (There are certain types of NBFCs which are regulated by other regulatory authorities.) 

What are the different types/categories of NBFCs registered with RBI?

NBFCs are broadly classified as follows:

  1. Asset Finance Company (AFC) which are concerned with financing for physical assets example automobiles.
  2. Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) aiding infrastructure project with long-term debt.
  3. Infrastructure Finance Company (IFC) involved in providing infrastructure loans.
  4. Investment Company (IC) involved in the acquisition of securities.
  5. Loan Company (LC) involved in financing activities other than which are provided for by Asset Finance Company.
  6. Non-Banking Financial Company – Factors (NBFC-Factors) are involved in factoring.
  7. Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI) provides for economic support to MSME and other weaker section.
  8. Systemically Important Core Investment Company (CIC-ND-SI) involved in the acquisition of securities and shares. 

What is the procedure of application for registration of NBFC in Gurgaon to the Reserve Bank of India?

For NBFC registration in Gurgaon, the application can be made online on the secured portal of the Reserve bank of India.

The application form is available on the site which has to be filled online with correct and detailed information and submitted. A hard copy of the application should be submitted along with the documents required to the Regional Office of the Reserve bank of India.

For NBFC registration in Gurgaon, applications have to be submitted to the Regional Offices situated in Delhi.

After the online submission of the CoR application form, a Company Application Reference Number shall be provided. This should be clearly mentioned on the hard copy and used later to make follow up and stay updated on the status of the application on the same portal.

What documents shall be required for Registration of Non-Banking Financial Company in Gurgaon?

The downloaded application form provided a list of documents required to be submitted along with the hard copy of the application for Certificate of Registration.

The documents vary as per the type of NBFC and other factors as well. The process starts with the incorporation of the Company followed by an application for CoR to the Reserve bank of India by the Company. The documents must be proper and correct. Below-mentioned are few documents to be submitted from the many provided in the list:

  1. Certified copy of Certificate of Incorporation of Company, the extract of the MOA with the main object clause, and PAN and CIN allotted to the company.
  2. Copy of a Fixed Deposit receipt & Bankers Certificate as a proof of the minimum Net Owned Fund of Rs. 2 crores.
  1. CIBIL data, Directors’ profile, certificates of highest educational and professional qualification of directors, and certificate of Banking Experience of the Directors.
  1. For companies which are already in existence
    1. Profit & Loss account,
    2. The Audited balance sheet.
    3. Director & auditor’s report
  2. Board Resolution as stated in the application form guidelines.

Why do you need a consultant to proceed for the steps of NBFC Registration in Gurgaon?

A team of competent professionals with technical know-how in providing assistance for setting up of NBFC and offer other services related to the obtaining of NBFC license is important. This helps in increasing the possibility of getting approved by the Reserve Bank of India. This includes steps right from the incorporation of a company to all the other steps that follow, including preparation of the required documents, analyzing the board and members involved, providing opinions on other requisites etc.

For the registration of NBFC, it is advised that a professional eye scans and scrutinizes the entire process because the Reserve Bank of India is stern upon its approach and does not provide NBFC license to every applicant.

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