NBFC Registration in Jaipur
Register in 7 Days
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Introduction of NBFC Registration
A Non-Banking Financial Company (NBFC) is a type of financial institution that provides financial services to individuals and business entities. They are very active or similar to the banks but both are different and registering the NBFC does not require a bank license but such a Company has an NBFC License. NBFCs can be seen as an alternative to banks as they provide financial solutions to the unorganized sector of society.
An NBFC license may be obtained from the RBI under Section 45-IA of the RBI Act, 1934. To obtain an NBFC License a person must first register as an NBFC under the Companies Act, 2013 and any other applicable law. The NBFC creates a link between investors or depositors and borrowers.
Significance of NBFC Registration in India
NBFC registration is very important for anyone who wants to do financial business in India. NBFCs cater to a wide range of clients and provide loans to disadvantaged communities including urban and rural areas thus contributing to the country's growth. However, the interest rate at which the NBFC loan can be determined by the RBI guidelines.
Advantages of NBFC Registration in Jaipur
Distinct legal identity
Once a business is registered it is born legally which means it is separated from its owners, directors, managers, shareholders, and employees, etc.
Limited Liability
Members' liability is limited by the amount invested in the Company and therefore cannot be held liable for the Company's debt and liability.
Fewer compliances
Registering for the NBFC is much easier than getting a Banking license and there are stricter rules and heavy paperwork compared to banks.
Low-Interest Rate
Interest rates are the main considerations when applying for any type of loan. NBFC interest rates are lower than bank rates. Therefore, it is easier for borrowers to repay.
Fewer Rules and Guidelines
Fewer regulations and rules apply, i.e. prescribed under the Companies Act, 2013 that to banks. It makes the borrowing process easier and helps the borrower to get a loan easily.
Low-Cost Level
It involves lower costs and is more profitable than banks. There are many rules and regulations to follow in the case of banks compared to NBFCs.
Minimum requirements
Company Consolidated under the Companies Act 1956/2013
Minimum Net-owned Funds: Rs. 2 Crore (capital are tax paid)
The profile of directors must be from financial or bank
A 5-Year Business Plan
Documents Required for NBFC Registration
Complete Company Registration Documents
A set of Company Documents namely COI, MOA, AOA, PAN Card, GST Certificate, if any.
Documents/Details of Directors and Members
Short Profile, Proof of income, credit rating report, Total Valuation Certificate, Education Eligibility Certificates, Experience Certificates
Company documents
Company Bank Account Details Documents stating the minimum NOF requirement, Bank Report confirming No Lien statement for Initial FD of Rs 2 Crore, Board decision to authorize NBFC formation, action plan details for next 5 years, Tax Returns.
Registration Process to Apply for an NBFC License
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How Paravue Advisors help you to achieve your dream startup?
We at Paravue Advisors guarantee a high level of satisfaction and timely delivery of your firm registration with better response to government needs through our professionals. You can contact our team on 099504-51000 or send an email to infoparavueadvisors@gmail.com for NBFC Registration in Jaipur
Establish your entity in just 3 simple stages-
- Opt for the suitable package for your needs
- Fill in the questionnaire that takes less than 12 minutes
- Provide the basic details and documents required to register
- Make payments with secure payment gates
- A Relationship Manager assigned
- Application for CARN
- Submission of all documents to Regional Office
- Incorporation Certificate
- PAN and TAN allotment
- Require 10-12 working days
*Affected by Government processing term
Why you should choose Paravue Advisors for your assistance?
Expertise guidance
We will help you from picking up a suitable registration to getting your registration certificate. Our experts give you expert guidance on many of the processes involved in registering your business as a sole proprietorship, as well as service tax registration, sales tax, import/export code, and professional tax.
Filing Application
The professionals to assist you in the application are well-executed and can manage native registrations.
Registration Receipt
Our team will provide full assistance with the registration process. This can vary between 5 and 15 days, depending on the work done by the authorities involved.
How NBFCs and Banks differ?
| Based on | NBFC | Bank |
|---|---|---|
| Definition | NBFCs provide banking services to individuals without a Bank license. | The bank is a government-mandated financial intermediary that aims to provide banking services to the public. |
| Regulatory Authority | Companies Act 2013 & RBI Act, 1934 | Banking Regulation Act 1949 |
| Demand Deposits | NBFCs cannot accept demand deposits (DD). | Banks can accept a demand deposit. |
| Foreign investment | In the case of NBFCs, foreign investment is 100% approved. | Foreign investment is allowed up to 74% in private corporate banks. |
| Settlement and Payment System | Not a part of the system | An important part of the system. |
| Cash reserve ratio | Not applicable | Applicable |
| Deposit Insurance Cover | Not available | Available |
| Credit Creation | NBFCs do not create credit | Banks create credit |
FAQs on NBFC Registration in Jaipur
- to lend money or
- investing in stocks/shares/bonds/debentures or
- lease hire purchase, or
- doing insurance business, chit business or
- Accepting deposits under any program or scheme.
To register as an NBFC, an application at the Regional Office of the RBI must be made with the required documents.
- Agricultural activities
- Industrial activities
- Sale or purchase of goods and services
- Sale or purchase of construction of an immovable property
- Any institution whose main business is agriculture.
- Businesses doing industrial work.
- Institutions are responsible for the purchase or sale of any goods (other than securities) and services.
- Engaging in selling/buying/building immovable property.
- Companies whose primary business includes receiving deposits under any program or arrangement in the form of a single lump sum or installments in the form of donations or in any other way.
- Controls the NBFC registration process;
- It sets out policies and issues guidelines for NBFCs;
- Inspects and uses surveillance over NBFCs to ensure compliance with the provisions of the RBI Act, 1935 or not
- Punishes NBFCs for infringing the RBI Act rules, which may also result in the suspension/cancellation of the NBFC license.