Documents Required for NBFC

Successful registration of NBFC encompasses a comprehensive list of several documents. It is very important to gather each and every one of them to get an NBFC Certificate.

A Non-Banking Financial Company (NBFC) is a financial institution that works like a bank but does not have a banking license offering financial products and services to customers. It comes forward when the bank takes a step back. NBFC is primarily concerned with the services of lending loans and advances, acquisition of shares, hire-purchase, finance leasing, chit fund, etc. An NBFC is different from a bank in the following ways, including the fact that an NBFC cannot:

1. accept savings,
2. accept current account deposits, 
3. issued cheques were drawn on itself, and 
4. allow its depositors to get deposit insurance and credit guarantee coverage.

Documents required for NBFC Registration:

Registration of any NBFC requires the following documents:

1. Certificate of Incorporation
2. Certified copy of Memorandum of Association accompanied by Articles of Association
3. The memorandum should exhibit details regarding the financial business.
4. Copy of Permanent Account Number (PAN)
5. Corporate Identity Number (CIN) allotted to the company.
6. Directors’ profiles duly signed by each director
7. Director experience certificate that represents his/her working background in NBFC
8. Directors’ CIBIL Data
9. Two years of Financial Statements concerning unincorporated Bodies, if any, in the company where the directors still possess directorship with/without substantial interest.
10. Board Resolution approving submission of the application
11. Board Resolution exhibiting the company’s acceptance/pledge concerning the integrity of the public deposit
12. The resolution should convey the organization’s conduct towards the unethical procurement of public deposits.
13. Board resolution showing the company’s participation towards the NBFC activity regardless of the timeframe and its acceptance will not start the same unless they get permission from RBI
14. Board Resolution showing the formulation of “Fair Practices Code”
15. Statutory Auditors Certificate that shows the company’s compliance towards provision for procurement of public deposit.
16. Statutory Auditors Certificate certifying that the company isn’t pursuing any kind of NBFC activity.
17. Statutory Auditors Certificate showing the net owned fund of the company as on date of the application.
18. Authorized Share Capital details along with the current shareholding pattern of the company with percentages
19. Copy of Banker's Certificate and Fixed Deposit receipt
20. Banking-related details such as current balance, account info, branch address, and loan facilities, etc. availed.
21. Copy of Audited balance sheet (last three years) and Profit & Loss account accompanied by directors & auditors report
22. Documents illustrating the company’s plans for upcoming years (three years to be specific) encompassing the following elements:

• Thrust of business
• Asset/income pattern statement
• Projected balance sheets
• Market segment
• Cash flow statement

23. Copy of documentary evidence that authenticates the company’s source of start-up capital
24. Self-attested income tax returns, bank statements, etc.

CONCLUSION:

It is very important to have possession of every required document before applying for registration. Try to understand the importance of every single document and even a single missing document can lead to rejection of your application.