NBFC Registration | Step-by-Step Procedure | Non-Banking Financial Company

#NBFC, or Non-Banking Financial Company, is a company registered under the Companies Act 2013, specializing in providing loans, advances, and financial services such as acquiring shares, stocks, bonds, securities, leasing, hire-purchase, insurance, and chit funds. Unlike traditional banks, NBFCs cannot operate without RBI approval. These entities have emerged as a key pillar of India's financial sector, offering faster processing, customer-friendly policies, and innovative loan products, especially in areas underserved by banks.

What is NBFC registration?

NBFC registration involves registering your company under the Companies Act 2013 and obtaining RBI approval to comply with regulatory standards and provide financial services legally.

The NBFC sector in India has witnessed exponential growth, meeting the surging demand for loans in regions with limited banking facilities. NBFCs are a preferred choice for individuals, businesses, and MSMEs seeking tailored financial solutions.

Key Requirements for NBFC Registration
Minimum Capital: Applicants must maintain a capital of ₹2 crores, primarily as fixed deposits with a nationalized scheduled bank. The capital must meet RBI’s "net owned funds" criteria.
Financial Literacy: Shareholders and directors should demonstrate financial expertise and integrity.
Business Plan: A well-crafted plan detailing loan processes, market research, and operational strategy is essential. Professionals can assist in creating this document to meet regulatory expectations.

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