Non Banking Financial Companies are finally seeing a resurgence. People’s need of less than complex financial services have created a large demand for nbfc registration.
Entrepreneurs from around India are gravitating towards it because of one simple reason – there are people looking for lending and other services that does not require a large credit score.
If you are one of those open minded entrepreneurs, then this blog is for you. Here, you will learn about the documents that you need to furnish in order to obtain the NBFC registration in India. Read More: Startup Registration
Documents for NBFC Registration in India
Here is the list of documents you need to furnish to obtain the license to start a Non banking Financial Company in India:
Certificate of incorporation:
You obviously need to incorporate a company before applying for the nbfc registration from RBI. Once you have completed the incorporation, get the copy certified by a Chartered accountant and package it alongside the other documents.
Copies of Memorandum of association:
Your memorandum of association should clearly state the nature of your business. It specifies all the details in legal terms – ones that the Reserve Bank of India appreciate. Additionally, attach a copy of the object clause as well – it will further consolidate your business objective in front of RBI.
Board resolution copy:
One of the key steps of nbfc registration process is to adhere to the “Fair Practices Code” of the NBFC regulations established by the RBI. Thus, provide a board resolution stating that you and your teammates are willing to make sure that throughout the course of your business, all the rules and regulations pertaining to this code are followed. It won’t be much of an issue for you as this code only entails two points:
You will only carry out NBFC activity,
And, you won’t accept any public deposit
Audited Balance sheet: Companies that are already part of the financial domain but now want to diversify in non banking financial activities must provide an audited balance sheet for the past three years of business. Read More: Section 8 Company Registration
Qualification details of the CEO of the company:
The highest professional within your NBFC company should be well versed in the financial domain. His qualification to reflect that versatility. Therefore, it is mandatory to provide the qualification details to the Reserve Bank of India.
Experience certificate:
As per the RBI norms, it is necessary for the applicant to have years of experience in the financial sector to start an NBFC. Therefore, it is mandatory for the applicant to submit the experience certificate.
Banker report:
You can’t run an NBFC is you yourself are burdening under a lot of debts. Therefore, you have to prove that as an individual, you have clean credit history. As proof, provide the confidential banker’s report.
Conclusion
Having these documents with the offline application is the only way to obtain the nbfc registration. If you want further details about this certificate, be sure to reach out to our experts. We will provide you with end-to-end assistance when it comes to this license. Read More: Cable Landing Station
This blog lists all the documents you need to apply for the nbfc registration in India. For further details about this license, contact Registrationwala.
