NBFC Company Services In Ujjain

An NBFC, also known as Non-Banking Finance Company is a private or public limited company registered under Companies Act, 2013 and also has obtained COR (Certificate from Registration) from the reserve bank of India. The NBFC is primarily engaged in the business of providing loans and advances, acquisition of shares and stocks and other investible securities. RBI grants license to the NBFCs to carry out the business of providing various kinds of loans such as Personal Loans, Asset Financing, SME Lending, Gold Loans, Loan against Property, Loan against Shares, Short term Personal Loans, etc.

Breakeven Advisory, your trusted legal advisor, provides a cost-effective NBFC company registration service in Madhya Pradesh. You may learn how to register your business here. Breakeven Advisory will take care of all legal formalities and fulfil the compliances, as defined by the Ministry of Corporate Affairs.

1. Mobilization of Resources - It converts savings into investments

2. Capital Formation - Aids to increase capital stock of a company

3. Provision of Long-term Credit and specialised Credit

4. Aid in Employment Generation

5. Help in development of Financial Markets

6. Helps in Attracting Foreign Grants

7. Helps in Breaking Vicious Circle of Poverty by serving as government's instrument

8. NBFCs are the last resorts of borrowing; NBFCs are there where banks are not there

9. NBFCs are the largest propellants of ushering finance into the country

The Net owned fund of NBFC-ICC (Investment Credit Company) must be more than Rs. 2 Crores over the life of the NBFC unless otherwise prescribed the RBI. A private limited or public limited company can be incorporated for this purpose.

It shall mandatorily hold Net owned funds of INR 2 crores at the time of registration and at all times thereafter. However, you can use the minimum capital for the lending or investment purpose.

RBI Conducts quality of capital test and ensure that Capital invested by the shareholders are free from any possible defects or non-compliance with Indian or international laws.

Directors, being the face of the Company, shall be the individuals of higher integrity and knowledge. It is not necessary for each of the Directors should be from the Banking or Finance background. However, it is expected that 25 % of the Board should have financial background.

A detailed business plan is the life line of the NBFC license. It shall be in the form of a road-map for next 5 years. With the advent of a large number of lending institutions across the country, it becomes very important to grant license to genuine and capable promoters.

The Non-Banking Financial Company must be able to pay claims to its present as well as future investors in full; It cannot carry out any operation in a manner prejudicial to the interest of both its existing or future investors; The general character of the Board and the management must not be detrimental to the interest of the public and depositors; An NBFC must have an adequate capital structure and earning potential; It must not be unfavourable to the functioning of the financial sector if the RBI decides to grant NBFC license to a company. The company’s working must be consistent with the economic growth, monetary stability, and other related policies of RBI.