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Procedure for Incorporation of NBFC Under Companies Act 2013

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Introduction

A Non – Banking Financial Company is incorporated under the Companies Act 2013 or 1956 to the core dealing in the business of loans and advances, acquirement of stocks, equities, debt, etc provided by the government or any local authority. The principle aim of the NBFC is to accept deposits under any scheme or manner.

Section 45-I (c) of the RBI Act states that a non – Banking Company dealing in the business of a financial institution will be termed as an NBFC. It is regulated by the Ministry of Corporate Affairs as well as the Reserve Bank of India.

Procedure for Incorporation of NBFC under Companies Act 2013

Step 1: Company Incorporation

The company incorporation is the very first step towards the NBFC registration. The applicant's company must acquire the incorporation certificate under the Companies Act, 2013 or the Companies Act, 1956. The applicant must first obtain the company registration either as a Private or a Public Limited Company.

Step 2: to apply for online registration on COSMOS

The applicant will be required to apply for the online registration and submit a physical copy of the application along with the required documents to the Regional Office of the Reserve Bank of India. The application must be submitted on RBI's official COSMOS website.

Step 3: Click on the CLICK option for company registration

Thirdly, you will be required to click on the CLICK option on the login page of the COSMOS Application.

Step 4: Download the excel form

An Excel application will show up which shall be required to be downloaded and then uploaded after the filling up of all the required details. The company will be required to specify the correct name of the Regional Office in the field “C-8” of the “Annex-I identification Particulars” in the prescribed Excel application form.

Step 5: The Company shall be allocated a CARN number

 Once the form is submitted, you will receive a Company Application Reference Number for the CoR (Certificate of Recognition) application filed online.

Step 6: Submission of the application along with the supporting documents to the regional office

Once the CARN is received, you will be required to submit the physical application form along with the supporting documents to the regional office. The Registrar Of Company shall examine the form and documents and will then send it to the head office.

Step 7: Issuance of NBFC License

After the complete inspection is done and no discrepancy is found, the Head Office of the Reserve Bank of India shall then, issue the Non-Banking Financial Company license. The applicant can check the status of the application by keying in the acknowledgment number.

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Author
Shamshad Alam
Experienced Digital Marketer with a demonstrated history of working in the internet industry. He likes to write about the latest technology trends, Skilled in Digital Marketing likes. Search Engine Optimization, SMO, SEM, PPC, Content Writing, and, Designing, etc.