{"id":6505,"date":"2020-04-10T20:04:39","date_gmt":"2020-04-10T14:34:39","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=6505"},"modified":"2024-12-09T17:21:22","modified_gmt":"2024-12-09T11:51:22","slug":"step-by-step-nbfc-registration-procedure","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/","title":{"rendered":"NBFC Registration: Step by Step Procedure"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In India, the financial service sector includes not only commercial banks but also the Non-Banking Financial Companies (NBFCs). The banks are not the only source of lending and borrowing funds in our country. <strong><em>NBFCs are an alternative for the people who do not want to wait in the lines of banks to borrow money for setting up business activities. The NBFCs provide a vast range of services like chit-funds, loans, etc. and the function of NBFCs are entirely different from banks.<\/em><\/strong> <\/p>\n\n\n\n<p class=\"has-drop-cap\">The developing countries like India, where there is a constant need for short-term finances for the people living in rural areas, NBFCs are the most efficient method for lending and borrowing finances. In this article, we will discuss the step by step procedure of <strong><a href=\"https:\/\/corpbiz.io\/nbfc-registration\">NBFC Registration in India<\/a><\/strong>. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_NBFCs\" >What are NBFCs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_the_Roles_and_Functions_of_NBFCs\" >What are the Roles and Functions of NBFCs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_the_different_types_of_NBFCs\" >What are the different types of NBFCs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#Which_Companies_do_not_require_registration_from_RBI\" >Which Companies do not require registration from RBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_the_differences_between_a_Bank_and_NBFCs\" >What are the differences between a Bank and NBFCs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_the_basic_requirements_to_get_NBFC_Registration_from_RBI\" >What are the basic requirements to get NBFC Registration from RBI?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_documents_are_required_for_NBFC_Registration\" >What documents are required for NBFC Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_the_guidelines_of_RBI_for_NBFC_Registration_in_India\" >What are the guidelines of RBI for NBFC Registration\nin India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_is_the_procedure_of_NBFC_Registration_in_India\" >What is the procedure of NBFC Registration in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#What_are_the_advantages_of_NBFC_Registration\" >What are the advantages of NBFC Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_NBFCs\"><\/span>What are NBFCs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>NBFCs or Non-Banking Financial Companies are Companies incorporated under <\/em><\/strong><em><strong>Companies Act, 2013<sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong>[1]<\/strong><\/a><\/sup><\/strong><\/em><strong><em>.<\/em><\/strong> These companies are engaged in business activities like loans, advances, hire-purchase, debt, equity, currency exchange, financing assets, <strong><a href=\"https:\/\/corpbiz.io\/peer-to-peer-lending-license\">P2P lending<\/a><\/strong>, and many more. NBFCs carry on their operations as per guidelines specified by the Reserve Bank of India (<strong><a href=\"https:\/\/corpbiz.io\/rbi\">RBI<\/a><\/strong>). <\/p>\n\n\n\n<p>Section 45-I(c) of the Reserve Bank of India Act, 1934, provides for a non-banking Company which is carrying on a business of financial institution will be an NBFC. The Ministry of Corporate Affairs also governs and manages the functions of the NBFCs. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Roles_and_Functions_of_NBFCs\"><\/span>What are the Roles and Functions of NBFCs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nroles and functions of NBFCs are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Increase and\nhelp in <strong><em>wealth creation;<\/em><\/strong><\/li>\n\n\n\n<li>Provide finances\nto <strong><em>economically weaker sections <\/em><\/strong>of society;<\/li>\n\n\n\n<li><strong><em>Development\nof specific sectors like<\/em><\/strong>\ninfrastructure;<\/li>\n\n\n\n<li>Generating <strong><em>Substantial\nEmployment;<\/em><\/strong><\/li>\n\n\n\n<li>Provide <strong><em>specialized\ncredit and longtime audit;<\/em><\/strong><\/li>\n\n\n\n<li>Helps in <strong><em>the\neconomic development of the country; <\/em><\/strong><\/li>\n\n\n\n<li>Helps in <strong><em>financial\nmarket development;<\/em><\/strong><\/li>\n\n\n\n<li>Contribution to <strong><em>State\nexchequer.<\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_different_types_of_NBFCs\"><\/span>What are the different types of NBFCs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\ncategorization of NBFCs are done in the following heads:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-26.png\" alt=\"types of NBFCs\" class=\"wp-image-6506\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-26.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-26-300x175.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Basis of Liability<\/h3>\n\n\n\n<p><strong><em>The\ncategorization of NBFCs in terms of the liability is as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li><strong><em>Deposit\nAccepting<\/em><\/strong> NBFCs(NBFCs-D) (Deposit\nTaking)<\/li>\n\n\n\n<li><strong><em>Non-Deposit\nAccepting<\/em><\/strong> NBFCs\n(NBFCs-ND) (Non-Deposit Taking)<\/li>\n<\/ul>\n\n\n\n<p><strong><em>The\nNon-Deposit Accepting NBFCs are further divided on the basis of size. The types\nof NBFCs based on size are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Systematically\nImportant NBFCs [NBFCs-ND-SI]<\/li>\n\n\n\n<li>Non-Deposit\nHolding NBFCs [NBFCs-ND]<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Basis of Activity<\/h3>\n\n\n\n<p><strong><em>On\nthe basis of nature of the activity, NBFCs carry out the types of different\nNBFCs are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Investment Company (IC)<\/li>\n\n\n\n<li>Housing Company<\/li>\n\n\n\n<li><a href=\"https:\/\/corpbiz.io\/microfinance-company-registration\"><strong>Micro Finance Company<\/strong><\/a> (MFI)<\/li>\n\n\n\n<li>Asset Finance Company (AFC)<\/li>\n\n\n\n<li>Mortgage Guarantee Company (MGC)<\/li>\n\n\n\n<li>Loan Company (LC)<\/li>\n\n\n\n<li>Infrastructure Finance Company (IFC)<\/li>\n\n\n\n<li>Core Investment Company (CIC)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_Companies_do_not_require_registration_from_RBI\"><\/span>Which Companies do not require registration from RBI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> <strong><em>The companies which do not require Registration of RBI are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li><strong><a href=\"https:\/\/corpbiz.io\/housing-finance-company-registration\">Housing Finance Companies<\/a><\/strong> (regulated by the National Housing Bank);<\/li>\n\n\n\n<li>Companies engaged in Stock Broking (regulated by Securities and Exchange Board of India);<\/li>\n\n\n\n<li>Core Investment Company whose assets are less than 100 crore rupees (regulated by Securities and Exchange Board of India);<\/li>\n\n\n\n<li>Nidhi Companies (regulated by Ministry of Corporate Affairs {MCA});<\/li>\n\n\n\n<li>Chit Fund Companies (regulated by respective State Governments);<\/li>\n\n\n\n<li>Companies engaged in transactions of Venture Capital (regulated by Securities and Exchange Board of India);<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/corpbiz.io\/merchant-banker-license\">Merchant Banking<\/a><\/strong> Companies (regulated by Securities and Exchange Board of India);<\/li>\n\n\n\n<li>Insurance Companies (whose certificate of registration is issued by the Insurance and Regulatory Development Authority of India {IRDA}).<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-nbfc-registration\/\">Documents Required for NBFC Registration<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_differences_between_a_Bank_and_NBFCs\"><\/span>What are the differences between a Bank and NBFCs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs can lend and invest money, just like traditional banks. The activities of banks and NBFCs are moreover similar. The financial intermediaries are regulated by the Companies Act, 2013, and the Banking Regulation Act, 1949. The control of both the financial intermediaries is under the Reserve Bank of India. The difference between financial intermediaries is as follows: <\/p>\n\n\n\n<ul>\n<li>NBFCs <strong><em>cannot\naccept demand deposits<\/em><\/strong> like banks;<\/li>\n\n\n\n<li>NBFCs <strong><em>cannot\nissue cheques on itself and do not form part of the settlement and payment system<\/em><\/strong>;\n<\/li>\n\n\n\n<li>The facility of <strong><em>deposit\ninsurance provided by Deposit Insurance and Credit Guarantee Corporation\n(DICGC)<\/em><\/strong>is not available to the NBFCs depositors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_basic_requirements_to_get_NBFC_Registration_from_RBI\"><\/span>What are the basic requirements to get NBFC Registration from RBI?&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs incorporated under the Companies Act, 2013, or the Companies Act, 1956, willing to start a non-banking finance business should have to comply with some basic requirements for getting RBI registration. The basic requirements for getting NBFC Registration from RBI are as follows:<\/p>\n\n\n\n<ul>\n<li>NBFC should be a\n<strong><em>registered company under the Companies Act, 2013;<\/em><\/strong><\/li>\n\n\n\n<li>NBFC <strong><em>should\nhave the minimum net owned fund of 2 crore Rupees<\/em><\/strong> (except for\nNBFC-Factors, NBFC-MFIs, CIC). <\/li>\n<\/ul>\n\n\n\n<p>The\nnet owned funds can be calculated from the balance sheet of the firm, which is last\naudited. Capital Reserve, Paid-up Equity Capital, Share Premium Account\nBalance, Free Reserves constitutes the total owned funds of a firm.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_documents_are_required_for_NBFC_Registration\"><\/span>What documents are required for NBFC Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\ndocuments required for NBFC Registration are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The certificate\nof Incorporation or the Certificate of Commencement of business of Company;<\/li>\n\n\n\n<li>The <strong><em>details\nof the management of the Company<\/em><\/strong> with the brochure of the Company;<\/li>\n\n\n\n<li>A copy <strong><em>of\nthe PAN card<\/em><\/strong> of Company;<\/li>\n\n\n\n<li>A <strong><em>copy of\nthe Corporate Identity Number (CIN) <\/em><\/strong>of Company;<\/li>\n\n\n\n<li>All <strong><em>documents\nrelated to address of office and location of office;<\/em><\/strong><\/li>\n\n\n\n<li>A <strong><em>true\ncertified copy of Memorandum of Association (MoA)<\/em><\/strong> of Company;<\/li>\n\n\n\n<li>A <strong><em>true\ncertified copy of Articles of Association (AoA)<\/em><\/strong> of Company;<\/li>\n\n\n\n<li>The <strong><em>credit\nreports of Directors<\/em><\/strong> of Company;<\/li>\n\n\n\n<li>The detailed list\n<strong><em>of Directors profile<\/em><\/strong>, separately filled and signed by each\nDirector;<\/li>\n\n\n\n<li>A <em>copy of Board Resolution certifying that the Company has stopped or carried out any NBFC activity and will not carry on any NBFC activity until Registration from RBI is granted<\/em><strong><em>;<\/em><\/strong><\/li>\n\n\n\n<li>A <strong><em>copy of\nincome tax returns and bank statement<\/em><\/strong> which should be self-certified;<\/li>\n\n\n\n<li>The <strong><em>detailed\ninformation of the bank accounts, loans, credits, balances, <\/em><\/strong>etc.;<\/li>\n\n\n\n<li>A <strong><em>true\ncertified copy of Board Resolution passed on \u201cFair Practices Code<\/em><\/strong>\u201d;<\/li>\n\n\n\n<li>A <strong><em>certificate\nby Statutory Auditor stating that the Company does not hold any public deposit\nand does not accept such deposits;<\/em><\/strong><\/li>\n\n\n\n<li>A <strong><em>certificate\nfrom Statutory Auditor specifying the owned funds of the Company as on the date\nof application;<\/em><\/strong><\/li>\n\n\n\n<li><strong><em>CIBIL data\nof Directors<\/em><\/strong> of Company;<\/li>\n\n\n\n<li>A <strong><em>copy of\nthe document with details of the source of startup capital of Company;<\/em><\/strong><\/li>\n\n\n\n<li>The <strong><em>balance\nsheet audited and profit and loss statement<\/em><\/strong> along with Auditors and\nDirector&#8217;s report of the 3 preceding years of the Company;<\/li>\n\n\n\n<li>The <strong><em>detailed\ninformation of the next 3 years&#8217; future plan of the Company <\/em><\/strong>along with\nthe projection of cash flow statement, income statement, and balance sheet.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_guidelines_of_RBI_for_NBFC_Registration_in_India\"><\/span>What are the guidelines of RBI for NBFC Registration\nin India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The NBFCs function is regulated by the Reserve Bank of India (RBI). The NBFCs have to abide by the guidelines provided by the Reserve Bank of India (RBI). The guidelines of RBI for NBFC Registration are as follows:<\/p>\n\n\n\n<ul>\n<li>The amount which\nis taken by NBFCs<strong><em>, the repayment of such amount will not be guaranteed by\nReserve Bank of India (RBI);<\/em><\/strong><\/li>\n\n\n\n<li>NBFCs should <strong><em>not\naccept demand deposits from public investors or depositors<\/em><\/strong>;<\/li>\n\n\n\n<li>The <strong><em>interest\nrate charged by the Company should not be more than the rate prescribed by the\nReserve Bank of India (RBI);<\/em><\/strong><\/li>\n\n\n\n<li>To make\nsettlements and payments the <strong><em>NBFCs cannot issue cheques;<\/em><\/strong><\/li>\n\n\n\n<li>The <strong><em>record\nof statutory return on deposits should be filed by Company every year in Form\nNBS-1;<\/em><\/strong><\/li>\n\n\n\n<li>The Company\nshould file a <strong><em>quarterly return on the liquid assets in Form NBS-3;<\/em><\/strong><\/li>\n\n\n\n<li><strong><em>The Company<\/em><\/strong> should submit a <strong><em>quarterly return on prudential\nnorms in Form NBS-2;<\/em><\/strong><\/li>\n\n\n\n<li>Every year <strong><em>the\naudited balance sheet of Company should<\/em><\/strong> be submitted;<\/li>\n\n\n\n<li>The <strong><em>credit\nratings every 6 months should be submitted<\/em><\/strong> to Reserve Bank of India\n(RBI);<\/li>\n\n\n\n<li>The <strong><em>depositors\ncannot avail the security facility of Deposit Insurance and Credit Guarantee\nCorporation (DICGC);<\/em><\/strong><\/li>\n\n\n\n<li><strong><em>No\nadditional benefits, gifts, or extra incentives will be provided to the\ndepositors <\/em><\/strong>or customers of\nNBFCs;<\/li>\n\n\n\n<li>The <strong><em>Company\ncan take public deposits for a minimum period of 12 months. The maximum tenure\nof public deposits can be 60 months.<\/em><\/strong> The Company cannot accept deposits\nrepayable on demand;<\/li>\n\n\n\n<li>The <strong><em>NBFCs\nwhich matches and are duly rated as per the Minimum Investment Grade Credit\n(MIGC) rating will be eligible for accepting conditional deposits<\/em><\/strong> from\npublic depositors;<\/li>\n\n\n\n<li>The Company\nshould maintain a <strong><em>minimum of 15% of the public deposits<\/em><\/strong> in its\nliquid assets.&nbsp; <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_procedure_of_NBFC_Registration_in_India\"><\/span>What is the procedure of NBFC Registration in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The step by step procedure of NBFC Registration is as follows:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"403\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-27.png\" alt=\"procedure of NBFC Registration in India\" class=\"wp-image-6507\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-27.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-27-300x210.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Apply for Incorporation of Company<\/h3>\n\n\n\n<ul>\n<li><strong><em>The\napplicant has to register under the Companies Act, 2013, as a Public Company or\na Private Company. <\/em><\/strong>The Company\nmust be registered with the Ministry of Corporate Affairs (MCA) under the\nCompanies Act, 2013. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Application Submission on COSMOS<\/h3>\n\n\n\n<ul>\n<li><strong><em>The\napplicant should submit the application on the RBI website known as COSMOS (<\/em><\/strong><strong><em>Cluster\nof Systems of Metadata for Official Statistics)<\/em><\/strong><strong><em>.<\/em><\/strong><\/li>\n\n\n\n<li>Along with the\nonline application form, a physical copy of the application with the required\ndocuments is required to be submitted by the applicant to the Regional Office\nof the Reserve Bank of India (RBI). <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Choose for Company Registration<\/h3>\n\n\n\n<ul>\n<li>The applicant, after\nhaving access to the RBI website, the login page of the COSMOS (Cluster\nof Systems of Metadata for Official Statistics) application, will ask for clicking on the Company Registration tab. <\/li>\n\n\n\n<li><strong><em>The\napplicant should click on the Company Registration of COSMOS (<\/em><\/strong><strong><em>Cluster\nof Systems of Metadata for Official Statistics)<\/em><\/strong><strong><em> application and should proceed further. <\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Downloading of Form<\/h3>\n\n\n\n<ul>\n<li>A window will appear displaying an Excel application form that is available to be downloaded. <\/li>\n\n\n\n<li>The applicant should download the appropriate application form, which is NBFC, from the website of COSMOS (Cluster of Systems of Metadata for Official Statistics).<strong><em>&nbsp; <\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Filling the Form<\/h3>\n\n\n\n<ul>\n<li>In the excel form, the applicant needs to fill the correct name of the Regional Office in the provided filed &#8220;C-8&#8221; of &#8220;Annex-I Identification Particulars.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Allocation of CARN Number to Company<\/h3>\n\n\n\n<ul>\n<li>After the\nsubmission of the form by the applicant, <strong><em>a Company Application Reference\nNumber (CARN) will be allocated for the Certificate of Recognition (CoR), <\/em><\/strong>which\nwas filed online on the website. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Submission of Application to Regional Office<\/h3>\n\n\n\n<ul>\n<li>Once the applicant receives the CARN number, the physical application with all the supporting documents required should be submitted to the Regional Office of Reserve Bank of India (RBI).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Scrutiny of the Application by RBI<\/h3>\n\n\n\n<ul>\n<li>The <strong><em>RBI\nwill scrutinize the application form and the supporting documents<\/em><\/strong> and\nwill send it to the head office.&nbsp; <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of NBFC License<\/h3>\n\n\n\n<ul>\n<li>The application filed is correct, the supporting documents are complete, and the records are clean, the head office of Reserve Bank of India (RBI) will issue NBFC License.<\/li>\n\n\n\n<li>The NBFC License will be<strong><em> issued within 90 days by the head office<\/em><\/strong>. <\/li>\n\n\n\n<li>The applicant can track the status of the application by entering the acknowledgment number. &nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_NBFC_Registration\"><\/span>What are the advantages of NBFC Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The advantages of NBFC Registration are as follows:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"344\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-28.png\" alt=\"advantages of NBFC Registration\" class=\"wp-image-6508\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-28.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-28-300x179.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Low Time and Cost<\/h3>\n\n\n\n<ul>\n<li>As compared to\nsmall banks, the Registration of NBFCs is considered an easy task. An excessive\namount of cost and time is required for opening a bank; on the other hand, it\nis not in the case of NBFCs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Easy Registration<\/h3>\n\n\n\n<ul>\n<li>The NBFC\nRegistration is easy as compared to opening a bank. If one has a good\nconsultant with good experience, then it is an easier task to get NBFC\nRegistration. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Easy Recovery of Loan.<\/h3>\n\n\n\n<ul>\n<li>NBFCs are systematic\nand offer a considerable small amount of loans to the borrowers. The borrowers\nquickly return such small amounts of loans in the prescribed time, hence making\nit convenient for the lenders.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Industrial Growth<\/h3>\n\n\n\n<ul>\n<li>Nowadays,\neveryone needs an easy source of funding for their new businesses. NBFCs\nprovide easy loans in a short time to people setting up new businesses in a\nshort time. Hence, this led to the formation of new Companies leading to\noverall industrial growth in the country.&nbsp;\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NBFCs are companies which match with traditional banks to some extent. Due to some restrictions and dissimilarities, NBFCs cannot carry on all the work like other conventional banks; hence this is what sets the NBFCs apart. The NBFC Registration process in itself is a daunting task as approval of the Reserve Bank of India (RBI) is needed. The process of NBFC Registration is long-lasting and time-consuming. Therefore, if you are willing to register NBFC, then you require an experienced consultant who has a good understanding of NBFC Registration and deals with RBI. We at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> have experienced professionals to help you with the process of registration. Our professionals will guide you and assist you in the process of NBFC Registration. The professionals will ensure the timely and successful completion of your work.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/future-of-nbfcs-in-india\/\">Future of NBFCs in India \u2013 A Reality Check<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In India, the financial service sector includes not only commercial banks but also the Non-Banking Financial Companies (NBFCs). The banks are not the only source of lending and borrowing funds in our country. NBFCs are an alternative for the people who do not want to wait in the lines of banks to borrow money for [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":6510,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[91,323],"tags":[475],"acf":{"service_id":"8"},"authorName":"Sakshi Sharda","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/sakshi-sharda.jpg","authorDescription":"Sakshi Sharda has done BBALLB(HONS) and holds a strong knowledge on the matters pertaining to finance and law. From the past one year she is working as a legal advisor and in her leisure time she works on improvising her knowledge. Sakshi is spreading her knowledge by writing for Corpbiz.","postViews":14176,"readingTime":8,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6505"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=6505"}],"version-history":[{"count":25,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6505\/revisions"}],"predecessor-version":[{"id":67630,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/6505\/revisions\/67630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/6510"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=6505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=6505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=6505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}