The NBFCs are now immensely prominent worldwide as a magnificent and effective complementary to the banking and financial sector. All those companies other than financial and banking, which deal principally and exclusively with various different types and sorts of loans and leasing, hire-purchases, investment funds, insurances, and instruments of the capital and money markets, are called NBFCs. Small to big borrowers and investors belonging to diverse fields of the commercial, industrial, and institutional sectors, have been becoming hugely benefited by NBFCs directly and indirectly. Thus, the non-banking financial companies (NBFCs) have now become greatly significant to well-rounded development and prosperity of every economy, worldwide. These are the main and pivotal reasons for our all-encompassing services regarding nbfc registrations in countries all around the whole world, inevitably including India. Below is described nbfc registration procedure in India, separately and exclusively. Our law firm is reputed globally owing to our complete gamut of legal services to all economic sectors, inherently including services for nbfc registration and well-informed and updated nbfc guidelines.
NBFC Registration Procedure
The magnitude of non-banking financial companies has been steadily growing during the past decades in all across India. The Reserve Bank of India Act, 1934, defines an nbfc under its section 45I (a), and grants the Certificate of NBFC Registration accordingly. In India, these NBFCs are broadly classified into the categories of Asset Finance Companies, Investment Companies, and Loan Companies. We provide well-informed and rigorous services for these all types of companies. Companies registered under the Companies Act of 1956, and engaged in the business of above-mentioned fields, are eligible for acquiring an nbfc registration certificate from the RBI. Such a certificate is mandatory if the total financial asset being used in its business exceeds 50% of company's own capital asset. The minimum capital fund prescribed is Rs.2 Crore, since April 1999. The desirous company has to make an application for this nbfc registration in the manner prescribed, along with the required documents, for RBI's consideration.