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Documents Required to Apply for NBFC License in India

An NBFC License is the authorization to establish a Non banking Financial Company and providing the following services:

  1. Lending loans
  2. Receiving deposits
  3. Investment
  4. Infrastructure Financing
  5. Micro Financing
  6. And services within the same vein.

To obtain the license, the aspirant has to reach out to the Reserve Bank of India along with the requisite documents. This article explains the documents required to apply for NBFC License in India.

Document Checklist for the NBFC License

The applicant has to submit a duly filled application form along with the following documents to the regional office of the Reserve Bank of India (RBI):

Management Information

A document detailing the information of the management including the names and address details of the management personnel has to be provided to the RBI.

Copies of Company Incorporation Certificate and Certificate of Commencement

If the applicant is a Public Limited Company, he has to submit Certificate of commencement in addition to the certificate of incorporation of the company.

Copies of the MOA and AOA: The aspirant must submit certified copies of the Memorandum of Association and Articles of Association. Additionally, the applicant must provide a separate document containing the financial business related clauses mentioned in the Memorandum of Association.

PAN Card of the company: It’s a document that proves the tax-paying status of the applicant entity.

CIBIL Data of the directors: The directors of the NBFC must have a clean credit history. The RBI verifies that by taking a look at their CIBIL data. Related Content: FEMA Guidelines

Financial Statements: The applicant must present the financial statements of the last 2 years up to the date of filing the application of NBFC license.

Board resolution (Approval): The applicant must have the board’s approval to file the application for NBFC license. Thus, it’s mandatory submit a certified copy of the board resolution stating that approval.

Board resolution (deposit): Board resolution declaring that the applicant company hasn’t engage with any NBFC activity prior to obtaining the NBFC license.

Board Resolution (Fair Practice Code): Board resolution declaring that the applicant company agrees to adhere with the Fair Practice Code associated with the NBFC activities.

Statutory auditor certificates

The applicant must submit the following two NBFC certificates:

One stating that the applicant company hasn’t engaged with any NBFC activity prior to obtaining the license.

And another stating the net owned fund of the applicant company.

Copy of the fixed Deposit Receipt & Bankers certificate: Copy of the fixed deposit receipt and the banker’s certificate showing that the applicant meets the net worth requirement for the NBFC license.

Authorized share capital and the paid capital of the company. Furthermore, information about shareholding pattern in percentages should also be provided to the RBI.

  • Bank balance sheet
  • Audited balance sheet of the last three years must also be provided to the RBI.
  • Business plan of the company for the next three years. It must show the details of the:
  • Trajectory of business
  • Market segment
  • Projected balance sheets
  • Cash Flow statement
  • Asset income pattern statement
  • Source of the startup capital of the company
  • Self-attested bank statement and income tax returns etc.

Conclusion

Reserve Bank of India requires a plethora of documents from the applicant of NBFC license. This blog has provided a detailed description of all the required documents. For further queries, consult with Registrationwala. Read More : ILD License

Here are the documents required to apply for NBFC license in India. If you require more information about NBFC license, consult with Registrationwala experts.

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