Looking for something like NBFC license, then you have landed to the right place. In this article we will explore you all about NBFC License in a very crisp and informative way covering the entire topic like registration of NBFC License, types of NBFC License etc.
Let’s start!
Registration of NBFC license
Under section 45 I(a) of the RBI Act 1934, no company shall commence or carry on the activity of NBFC without the certificate of registration from RBI and the NBFC license. For Certificate of Registration the applicant should fulfil two conditions-
- The company should be registered under the Companies Act 2013
- The Net Owned Fund of the company should be 2 crores.
NBFC is a Non-Banking Financial company that provides loans and advances, acquisition of shares, bondsstocks, debentures/securities that are issued by government or local authority or other marketable securities.
Types of NBFC License
Now, coming to the kind of company you belong to because that will decide the kind of License you need to register for your company. Hence, following are the list below-
- Asset Finance Company
- Investment company
- Loan company
- Infrastructure Finance Company
- Systemically Important Core Investment Company
- Infrastructure Debt Fund
- Non – Banking Financial Company- Micro Finance Institution
However, it is not mandatory to have a NBFC license in every case so the list of the company that do not need to apply for the NBFC license as they are regulated by other authority are detailed below-
- Insurance companies – it is regulated by the Insurance Regulatory and Development Authority of India
- Stock Broking- Regulated by Securities and Exchange Board of India
- Housing Finance Companies – Regulated by the National Housing Bank
- Merchant Banking Companies – Regulated by Securities and Exchange Board of India
- Venture capital companies – Regulated by Securities and Exchange Board of India
- Collective Investment schemes Companies - Regulated by Securities and Exchange Board of India
- Mutual fund- Regulated by Securities and Exchange Board of India
- Nidhi Company – Regulated by the Ministry of Corporate Affairs (MCA)
- Chit Fund Companies – Regulated by the Respective state Government
Conclusion
We have tried to give you the crisp and informative article briefing about NBFC license. And, for more detailed knowledge on the NBFC license kindly read our article NBFC License in India. For any query related to the article please contact us at info@enterslice.com. Thank you.
