Non-Banking Financial Company (NBFC) predominantly engaged in financial activity, it provides financial services to individuals and Businesses. Generally, NBFC are not allowed to take deposits from the public.
As per Companies Act, 2013 NBFC is a type of company engaged in the business of receiving loans and advances, acquisition of stocks or shares, leasing, hire-purchase etc. In India, The Reserve Bank of India (RBI) regulates the NBFC registration.
NBFCs are becoming an alternative to the banking and financial sector. In NBFC there is a requirement of minimum net owned fund of Rs.2 Crore. NBFCs can commence its operations only after obtaining “Certificate of Registration” from the RBI.
NBFC can be categorized on the basis of following ways:
a) Deposit accepting NBFCs.
b) Non deposit taking NBFC.
c) Based on the kind of activity they conduct.
Time duration for NBFC company registration: Normally it takes 4 to 6 month to get the NBFC company registration subject to proposed company name availability approval.
