How to Start an NBFC Registration in India: A Simple Guide
NBFCs are an integral part of India's financial system and provide services like loans, asset financing, and investments. Unlike traditional banks, NBFCs are much more flexible and cater to underserved sectors, including MSMEs. If you want to start an NBFC, then knowing the process for obtaining an NBFC registration and NBFC license is very important. This article will make the process to initiate your NBFC in India a lot easier.
What is an NBFC?
An NBFC Registration in India is a financial institution that offers banking-like services without holding a banking license. NBFCs cannot accept demand deposits, such as savings or current accounts, but they can provide loans, credit facilities, and investment opportunities. To operate legally, every NBFC must obtain an NBFC registration from the Reserve Bank of India (RBI).
Steps for Launching an NBFC in India
The process for forming an NBFC requires following stages such as legal compliances, documents to be prepared, and acquiring a license from the RBI. Now here's the step-by-step procedure for it:
Step 1: Incorporate a Company
- Select a legal structure: Incorporate your company under the Companies Act, 2013. Either form a Private Limited Company or a Public Limited Company.
- Meet Capital Requirements: Ensure your company has a minimum Net Owned Fund (NOF) of ₹2 crore, as mandated by the RBI.
Step 2: Prepare the Required Documents
- Accurate documentation is critical for a successful application. Key documents include:
- Certificate of Incorporation from the Registrar of Companies (RoC).
- Memorandum of Association (MOA) and Articles of Association (AOA) specifying the company's objectives.
- KYC details of directors and shareholders.
- Audited financial statements for the last three years, if applicable.
- A detailed business plan with projected financials for 3–5 years.
Step 3: Registration under NBFC
- Online Application: Submit the NBFC registration application through the COSMOS portal on the RBI website.
- Submission of Physical Copies: Forward the physical copies of the application and supporting documents to the RBI's regional office.
Step 4: RBI Scrutiny and Approval
- Verification: The RBI scrutiny of the application to ensure them for all the regulations.
- Approval: Satisfied, the RBI grants an NBFC license to start business as an NBFC.
Role of NBFC registration Consultants
The registration process for NBFC is relatively long and complicated, hence streamlining it with professional assistance. ASC Group being an old name in this arena provides end-to-end NBFC registration services for NBFC in India. Whether it is document preparation, or final approval of registrations, their experts provide seamless services.
Why ASC Group for NBFC Registration?
ASC Group is experienced for over 25 years and is aware of all the minute details involved in the NBFC registration process.
- Pan India Service
- ASC Group ensures support for those who are situated in Delhi, Mumbai, Gurugram, Noida, or in any other city.
- Comprehensive Solution
- ASC Group is known for comprehensive solutions to each step from compliance to audit related with the NBFC registration process.
- 24/7 Support: ASC Group's team is available round the clock to address your queries and guide you.
- Benefits of Establishing an NBFC
- Extended Services: Provide loans, hire purchase, leasing, and other financial products.
- Flexibility: Run with lesser restrictions compared to traditional banks.
- Market Access: Reach MSMEs, rural areas, and underserved markets.
Contact ASC Group Now!
Starting an NBFC License in India is a very lucrative opportunity but requires careful planning and compliance. With the help of ASC Group, you can go through the process without any hiccups and smoothly. For expert assistance with NBFC registration, call ASC Group at 9999043311. Our services are available 24/7 to help you every step of the way. Get started on your NBFC journey with ASC Group—your trusted partner in compliance!
