A Non – Banking Financial Corporation is a company incorporated under the Companies Act 2013 or 1956 which is engaged in the business of loans and advances, acquisition of shares, debentures and other stocks issued by Government or other local authorities, insurance business, leasing, hire-purchase, etc. issued by the Government or any local authority.

The main objective of this type of a company is to accept deposits under any scheme or manner.

A Non-Banking Financial Company (NBFC) provides banking and other lending services without meeting the legal definition of a bank.

Every NBFC has to obtain Commencement of business certificate from RBI as defined under Section 45-IA of the RBI Act.

In general, NBFC is filling up the gap of financial needs for the organized and unorganized section of the population.

The following NBFC’s are not required to obtain any registration with the Reserve Bank of India:

  1. Core Investment Companies – (assets are less than 100 crore or public funds not taken)
  2. Merchant Banking Companies
  3. Companies which are engaged in the business of stock-broking
  4. Housing Finance Companies
  5. Companies engaged in the business of Venture Capital.
  6. Insurance companies holding a certificate of registration issued by IRDA.
  7. Chit Fund Companies as defined in the Sec 2 clause (b) of the Chit Fund Act, 1982
  8. Nidhi Companies

Services for NBFCs includes :

  • Incorporation and Registration of NBFCs in RBI ( DNBS)
  • Company Based Advisory.
  • Company Secretarial Advisory.
  • Drafting of Business Documents.
  • Liaisoning with RBI.
  • Appearance before RBI on behalf of our Client.