Role of NBFC and its registration process
NBFC or Non-Banking Finance Companies also plays a great role in Indian Financial system along with mainstream banks. They provide almost all of the similar services to that of the banks except issuing cheques and demand drafts. The important activities of NBFCs are to provide loans and advances, personal loans, working capital loans, investment in stocks, shares, and debentures, leasing, hire purchasing, insurance business and more. Now there are several NBFCs in the county with operations in single to several states. It is found that new NBFCs are formed frequently in the country to play a dominant role in the financial sectors to help the people in meeting various needs and to make a good business out of them.
Importance of NBFCs
NBFCs concentrate on providing small loans to the customers and the application process and formalities look to be simple when compared with the mainstream banks. They also provide different types of loans for different customers to meet the various personal and business needs. They also provide group loan to weaker sections of the society for different home based jobs to attain self-efficiency. Now, the entrepreneurs or organization with the ambition of starting a financial organization can consider starting an NBFC. Now the process to get NBFC certificate of registration is simplified by RBI to attract more and more people and businesses to start NBFCs in the country to serve the needs of the common people.
Form the company
First, you have to form and name the company. The two important factors that you need to apply for NBFC registration is the certificate of incorporation and the bank account in the name of the company with a minimum paid up share capital of 2 crores. Now there are professional registration companies to help you with getting certification of incorporation from the concerned department. With incredible knowledge about registering the company, they speed up the process and help you in preparing all of the documents required to submit the application for NBFC registration.
Different types of NBFCs
There are different types of NBFCs and primary function of each of the company differ from one to another. You should have a better idea about the type of the company you love to start with. Some of the important types of NBFCs include Asset Finance Company, Investment Company, Loan Company, Infrastructure Finance Company, Micro Finance Institution and more. Among the Micro
File the application It is a good idea to submit the application of NBFC registration with the help of a professional agency even though RBI gives 30 days of time to produce any of the missed or additional documents. Professional agencies with excellent knowledge of RBI rules and regulation related to NBFC Certificate of registration (COR) help you submit the application with all of the much-required documents to add the real speed to NBFC registration in India. If you are genuine and the application meets all of the specified requirements, then you can expect the NBFC registration license within 90 to 120 days.