A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of
·loans and advances,
·acquisition of securities
·insurance business, chit business
·but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property.
A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).
In terms of Section 45-IA of the RBI Act, 1934, it is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934.
DOCUMENTS REQUIRED TO BE ENCLOSED TO THE APPLICATION FORM
1. Identification particulars
2. Statement on prudential norms
3. Information about the management
4. Certified copies of up-to-date Memorandum and Articles of Association of the company.
5. Certified copies of Certificate of Incorporation and Certificate of Commencement of Business.
6. A Board resolution specifically approving the submission of the application and its contents.
7. A copy each of the Profit and Loss account and audited Balance Sheet for the last 3 years or for such shorter period as are available (for companies already in existence).
8.Business plan of the company for the next three years giving details of its (a) thrust of business; (b) market segment; and (c) projection of investments and income.