• Documents Required
- Certified Copy of Certificate of incorporation (CoI): Take a Certified Copy of CoI, MoA (Memorandum of Association), and AoA (Articles of Association) from the Regional ROC (Registrar of Companies)
- Updated KYC: Latest KYC details, income proof, credit report, and Net-worth Certificate of Directors and shareholders.
- Net Worth Certificate: Collect updated net worth certificate of Directors, member/shareholders, and Company.
- Education: Education & qualification proof of the Directors.
- Company’s Details:Company’s PAN & GST number. Documents in support of the address of the company.
- Bank Account: Details of the bank account of the company. This account must have at least Rs.2 crores deposited as the minimum NOF requirement. And it must be well audited for the last 3-years.
- Banker’s Report:A report to be obtained from the bank confirming the No Lien remark on the Initial Fixed Deposit of Rs.2 crores.
- Board Resolution: The board’s resolution must include, “approving the formation of the NBFC”.
- Underwriting model: A detailed action plan, for the next 5-years, about the loan products, complying with the Fair Practices Code, credit, and risk assessment policy must be present.
- Organizational Structure: Complete plan of the organization hierarchy and decision-making process. The proposed criteria on which a loan application will get approved or rejected.
- IT Policy: The planned system and Information technology policy.
Pre-Conditions of NBFC Registration
According to Section 45-IA of RBI, below conditions must be fulfilled for a company to be registered as an NBFC:
- Registration: The financial institution should be established as a company under Section 3 of the Companies Act 2013 or the previous Companies Act 1956.
- Director’s Qualifications: At least 1/3rd of the Directors must hold a minimum 10-year experience in finance. And he/she must be employed as a full-time Director.
- Unique Business Plan: A business plan must be detailed and ready for operations for the next 5-years.
- Net Owned Fund (NOF): The Company must have at least Rs.2 Crores as it’s NOF. It must comprise of only equity paid-up share capital. Preference share capital is not to be included. The premium on shares & reserves, if any, shall be included. But it should not be a borrowed fund. Though, gifts from the spouse can be included in the NOF. The minimum NOF requirement differs for specialized NBFCs (NBFC-MFIs, NBFC Factors, and CICs).
- lean Credit History: The CIBIL score of the “company, it’s Directors, and it’s members” must be good. They must not have any write-offs or default on the repayment of loans to an NBFC/Bank.
- FDI Compliance: If any foreign investment is anticipated, the company should be in compliance.
NBFC-NON BANKING FINANCIAL COMPANY REGISTRATION CONSULTANT
To incorporate a private company in India,
- Setting up of NBFC
- Micro Finance Company Registration
- Money Changer License
- Setting up of Credit Co-operative Bank