How can Consultant assist you in getting Online NBFC Registration in India?

Online NBFC Registration in India

NBFC stands for Non-Banking Financial Institution provides complete banking services such as providing loans and other financial assistance without falling under the category of the legal definition of banks. It is incorporated under the Companies Act and regulated by the Reserve Bank of India.

NBFC plays a vital role in filling up the gap of financial needs for the organized and unorganized sector of society. Since currently, Banks target more on big commercial enterprises and individuals, with great credit ratings being enlisted in prime

customers; this leaves NBFC with greater opportunity to assure its presence amongst the entire financial market.

A license to establish it is a mandatory requirement in India which can be obtained online. However, with the growing economy, there is gradual enhance in demands of financial service that has led to an increase in the NBFC registration.

Online NBFC Registration Consultant can cater to all your needs starting from NBFC application to documentation and follow up on your behalf until you get an NBFC registration certificate. If you are stepping into the stream of NBFC, naturally you want the certificate at earliest; this is where the role of NBFC Registration Consultant comes into light.

How to select the finest NBFC registration Consultant in India?

NBFC Registration Consultant must have expertise in financial services and shall provide hassle-free consultancy services to its clients. However, we have jot several parameters which shall be adhered to by NBFC registration consultant such as:

• Credibility
• Experienced
• Good record of performance
• Professionalism in contacting the clients and government authority
• Timely respond and registration
• Shall adopt modern technology and must be efficient in terms of technicality
• Shall have a great success rate in providing NBFC registration certificate
• Must assist their client for post-NBFC registration

Role of NBFC in Economical Development

NBFC has influenced the Indian Economy through its outstanding performance in assisting financial assistance to the sectors untouched by regular banks, therefore, uplifting the overall financial health of the economy.

NBFC operates actively to promote financial sectors along with complimenting the overall banking sector. Following are the role of NBFC in improving the financial health of India:

1. Regular banks turn down to provide their services to a large sector of the economy which ultimately reaches NBFC. Therefore NBFC creates a balance in the total number of financial needs addressed in India.
2. NBFC provides loan by assessing alternative credit score model
3. NBFC is mostly preferred, and most incorporated company since it cater from small to large investors
4. Rate of interest at which NBFC provides loans are decided at their discretion, i.e., NBFC can charge a high rate of interest on short-term loan either with or without cap charged

Online NBFC Registration Procedure in India

Here we have jotted the simplest method to register NBFC with RBI:

• Start by acquiring DSC and DIN of directors of the proposed company;
• Apply for name reservation through MCA;
• Once the name is approved, proceed further to file incorporation application through SPICe forms;
• Once the company has net owned fund of minimum INR 2 Crore, it shall deposit the same in a bank account opened by the company;
• Apply for NBFC registration online to RBI through its official website;
• Thereafter, the online reference number is generated for future reference;
• Regional office upon the receipt of application shall verify the same for its correctness;
• Thereafter, the regional office forwards the application to the central office;
• Central office issue NBFC registration certificate in case everything is found correct.

Pre-requisite for NBFC Registration in India

The following checklist shall be ticked in advance before reaching out to NBFC Registration Consultant:

• NBFC shall be first incorporated either as a public or private company under Companies Act 2013;
• The company must have a net-owned fund of minimum INR 2 Crore;
• NBFC is permitted to accept the public deposit of minimum 1 year and a maximum of 60 months;
• NBFC can offer loans at interest rates as per discretion however not higher than the ceiling as prescribed by RBI;
• NBFC cannot accept a deposit that is repayable on demand;
• Minimum grade credit rating must be adhered to;
• Apart from the online application, the applicant must also furnish the hard copies of documents to the regional office of RBI;
• At least one-third of total directors must be experienced in financial terminologies.

NBFC vs. Banks

Since we know NBFC plays a role similar to banks, there still exist a few differences amongst both category of a financial institution which we have enumerated herein below:

Basis of difference	NBFC	Bank
Regulation	NBFC is regulated by the Companies Act, MCA, and RBI	Banks and its operations are governed through RBI and Banking regulations act 1949
License	NBFC provides financial and banking service without getting bank license	Banks are authorized through the government to act as a financial intermediary
Deposits	It is not permitted to accept deposits repayable on demand	Banks can accept demand deposit
Foreign Investment	Up to 100%, FDI is allowed	Not more than 74% is allowed
CRR/SLR	There is no requirement to maintain these reserves ratios	Banks must maintain a minimum cash reserve ratio and SLR as prescribed

Expert’s Assistance

In India, there are so many banks with multiple branches in every district; still, there remain certain areas untouched by banks. NBFC comes as a savior to those areas or segments where regular banks don’t access their services; consequently, this leads to enhanced demands of NBFC; therefore, increasing NBFC registrations in India. However, it is always advisable to hire an NBFC registration consultant to proceed with your business plan to incorporate your NBFC in India. Corpbiz