All About NBFC (Non-Banking Finance Company) – Registration, Documentation, Process & Cancellation

A Non-Banking Financial Company, NBFC Registration is a company registered under the Companies Act, 1956 involved in the business of loans and credits, obtaining of shares/stocks/bonds/debentures/securities issued by Government or local administration or other commercial agreements of a like variety, leasing, hire-purchase, guarantee business, chit and fund business but does not constitute any business whose primary business is that of cultivation activity, manufacturing activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of permanent capital. 

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A non-banking organisation which is a company and has the primary business of managing securities under any scheme or succession in one lump sum or parts by way of offerings or in any other practice is also a non-banking financial company (Residuary NBFC).

How to Obtain an NBFC License

There are specific requirements that the applicant organisation must fulfil to obtain the NBFC License

An application is required before the reserve bank of India along with the requisite documents on the website of the RBI (COSMOS). RBI may issue a notice in case it has any query concerning the application of NBFC submitted, respond to the notice promptly to avoid the rejection of the application. Well, Let’s have a deep dig to get the the pre-conditions required to be followd to obtain an NBFC RBI Registration.

How to License is Issued by RBI for NBFC

NBFC License is issued under the terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can begin or carry on business of a non-banking financial institution without Getting a registration from the Reserve bank of India and without having a Net Owned Funds of ₹ 25 lakhs (₹ Two crore since April 1999).

Procedures for applying for NBFC Registration India

The applicant must file an online form in RBI’s secured website through COSMOS for the login page.

In the window, click on one excel sheet and download the application form.

The applicant shall indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I identification Particulars” in the Excel application form.

After submission, the company will get a Company Application Reference Number for the Company registration application filed online.

At last, the applicant must get the print out of the application and submit the application form indicating the Company Application Reference Number, along with the required documents, to the concerned regional office of the Reserve Bank of India.

There are certain conditions that the applicant company must fulfil to get the NBFC Registration in India . An application is required to be made before RBI along with the requisite documents on the website of the RBI (COSMOS). RBI may issue a notice in case it has any query about the NBFC application submitted, respond to the notice promptly to avoid the rejection of the application. Let’s first understand the pre-conditions required to Register NBFC:

How to Get NBFC License from RBI

To get the NBFC registration with RBI, The applicant must file an online application in RBI’s secured website through COSMOS for the login page.

In the window, click on one excel sheet and download the application form.

The applicant shall indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I identification Particulars” in the Excel application form.

After submission, the company will get a Company Application Reference Number for the Company registration application filed online.

At last, the applicant must get the print out of the application and submit the application form indicating the Company Application Reference Number, along with the required documents, to the concerned regional office of the Reserve Bank of India.

RBI Cancelled the License of which NBFC

Here find the list of cancelled NBFC (Non-Banking finance Company) registrations by RBI Oct, 2019.

1- Dhanvarsha Finance & Leasing Co. Ltd. 

2 – DIAMONDHOME FINSERVE LIMITED (cancelled vide RD Orders dtd 10-09-2018)Gujarat

3 – Dinesh  Capital  (P)  LtdGujarat

4 – DISHA MICROFIN LIMITED (cancelled on conversion to SFB)Gujarat

5 – Dynemic Holdings Pvt. Ltd. 

6 – Elecon  Finlease  And  Industries  LtdGujarat

7 – Eriez Finance And Investment Ltd.Gujarat

8 – ESSENAR INVESTMENTS PVT. LTD. (cancelled vide RD Orders dtd 18-7-2018)Gujarat

9 – Ficon Lease & Finance Ltd.Gujarat

10 – For Testing – Dummy 

11 – For Testing – Dummy 

12 – Friends Mercantile Private LimitedGujarat

13 – Galaxy  Consolidated  Finance  LtdGujarat

14 – Gandhidham Fincap Ltd. (cancelled vide RD Orders dtd 18-7-2018)Gujarat

15 – Gangadhar  Lease  Finance  Pvt,  LtdGujarat

16 – Ganpat  Finvest  Services  Pvt.  Ltd (cancelled vide RD Orders dtd 18-7-2018)Gujarat

17 – Garden Finance Ltd – Merged with Garden Silk Ltd.Gujarat

18 – GAUTAM INFIN LIMITED (cancelled vide RD Orders dtd 18-7-2018)Gujarat

19 – GEERA FINANCE LTD.Gujarat

20 – Global  Securities  LtdGujarat

21 – GOLDMINE SHARES & FINANCE PVT LTDGujarat

22 – Gold Star  Lease  Financing  Ltd (cancelled vide RD Orders dtd 10-09-2018)Gujarat

23 – Goodluck Finstock & Leasing Ltd.Gujarat

24 – Goswamis Credits & Investment Private Limited (presently known as Goswamis Credits & Investment Limited) CoR cancelled vide Cancellation Order of ED dtd 4-4-2018Gujarat

25 – G.S.F.C. Investment  &  Leasing Company  Ltd – AmalgamationGujarat

26 – Gujarat  Arth  LtdGujarat

27 – Gujarat  Credit  Corporation  LtdGUJARAT

28 – Gujarat Financial  & Capital  Ltd (presently known as Gujarat Financial & Capital P Ltd) Cancelled vide CO Order dated March 16, 2018Gujarat

29 – Gujarat Gas Financial Services LtdGujarat

30 – GUJARAT LEASE FINANCING LTDGujarat

31 – GUJARAT STATE INVESTMENTS LIMITEDGujarat

32 – Gujarat Toll  Road   Investment  Co.  LtdGujarat

33 – Gujarat Venture Finance Limited 

34 – Gunjan Holdings Pvt.Ltd. (cancelled vide RD’s Order dtd 17-12-18 for not meeting minimum NOF as on 31-3-2017)Gujarat

35 – HARDIK FINANCE LIMITEDGujarat

36 – HARI-LEELA FISCAL PVT LTDGujarat

37 – Hindustan Finsecurities LtdGujarat

38 – Interface Financial  Services Ltd. 

39 – Jaihind Leasing & Finance LtdGujarat

40 – JALARAM FINVEST LTD.Gujarat

41 – Jaslene Finance Ltd.Gujarat

42 – Jayant  Security & Finance  LtdGujarat

43 – Jay Investment  Pvt LtdGujarat

44 – JHAVERI CREDIT & CAPITALS LIMITEDGujarat

45 – Kailash    Ficom  LimitedGujarat

46 – Kandla  Finance  LtdGujarat

47 – Kanubhai  Finance  LtdGujarat

48 – Kanvel  Finance  Pvt.  LtdGujarat

49 – Kargil Holdings Pvt. Ltd.Gujarat

Source: https://www.reformbuzz.com/business/all-about-nbfc-non-banking-finance-company-registration-documentation-process-cancellation.html