Non Banking Finance Company Registration in Chennai

Solubilis offers NBFC registration in Chennai. It also offers the service in Bangalore, Hyderabad, and Cochin. An NBFC is a company that provides financial services such as loans, acquisition of securities, leasing, insurance, and more. While they offer services similar to banks, NBFCs don't have full banking licenses. They operate under the Companies Act, 2013. NBFCs can accept deposits from the public and lend money to clients for purposes like leasing and hire-purchase. RBI registration is mandatory for NBFCs to conduct non-banking financial business. Types of NBFCs include Asset Finance Company (AFC), Investment Company (IC), and Loan Company (LC). Other specialized NBFCs include Mutual Benefit Finance Companies and Microfinance Institutions. Solubilis an NBFC registration consultants simplifies the NBFC registration process, ensuring you meet all the necessary legal requirements.

Legal Status: NBFCs are companies registered under the Companies Act, 2013 (formerly 1956). It’s legal status is ensured when it gets NBFC registration in Chennai.
RBI Registration: NBFCs need to obtain NBFC registration in Chennai also from the Reserve Bank of India (RBI) to conduct business.
Minimum Net Owned Fund: Every NBFC must maintain a minimum net owned fund of Rs. 200 lakhs. Deposit Acceptance: NBFCs can't accept demand deposits but can accept and renew public deposits for a duration of 12 to 60 months.
Interest Rates: NBFCs can't offer interest rates higher than the ceiling rate set by the RBI. Payment System: NBFCs aren't part of the payment and settlement system, and they can't issue cheques drawn on themselves.
Benefits: They can't offer higher interest rates, gifts, incentives, or additional benefits to depositors.
Deposit Insurance: Deposits with NBFCs are not insured.
RBI Guarantee: Repayment of deposits by NBFCs is not guaranteed by the RBI.

Proposed director & Shareholder - Indian Citizen:

PAN Card
Online NBFC registration in Chennai needs Aadhar Card
Address Proof (Bank Statement, Telephone Bill, EB or Mobile Bill from the last two months) Passport Size Photo

Proposed director & Shareholder - Foreign National:

NBFC registration consultants need copy of Passport (Requires Notary and Apostille)
Copy of Address Proof (Requires Notary and Apostille)
Copy of Nationality Proof (Requires Notary and Apostille)
Passport Size Photo

Register Office documents:

If the office is rented, a Rental Agreement is mandatory.
NBFC registration in Chennai needs Electricity Bill (Not more than two months old) is necessary for NBFC registration process.
For non-rented offices, an NOC (No Objection Certificate) from the landlord is needed to operate the business.

Non-operating financial holding
Mortgage guarantee
Investment Company
Infrastructure Finance Company
Asset finance and loan finance
Chit business

FAQ'S

A non-banking financial company (NBFC) that primarily receives deposits in a lump sum or in installments through various schemes or contributions falls under the category of a residuary NBFC.

A company is registered as an NBFC by the RBI when over 50 percent of its total assets and more than 50 percent of its gross income come from financial assets, making financial activities its primary business.

NBFCs with an asset size of ₹500 crore or more, as per their latest audited balance sheet, are designated as systemically important NBFCs. This classification is made because the activities of these NBFCs can impact the financial stability of the broader economy.

NBFCs engage in lending and investments similar to banks but have some key distinctions:
* They can't accept demand deposits.
* NBFCs are not part of the payment and settlement system and can't issue checks.
Deposit insurance by organizations like the Deposit Insurance and Credit Guarantee Corporation isn't available to NBFC depositors, unlike bank depositors who enjoy such insurance coverage. These differences highlight the unique characteristics and limitations of NBFCs compared to traditional banks.

Financial businesses, like insurance and stock companies, have specific regulators mandated by law. For instance, IRDA oversees insurance, SEBI manages merchant banking, venture capital, and stock broking, while NHB regulates housing finance. These regulatory bodies ensure compliance and supervise these sectors, fostering a secure and stable financial environment.

The Reserve Bank of India oversees Non-Banking Financial Companies (NBFCs) involved in lending, acquiring shares, stocks, bonds, and financial leasing. This regulatory role ensures the proper functioning and reliability of NBFCs in diverse financial activities.