NBFC Company Registration

 company registered under the Companies Act, 1956 which is involved in the principal business of lending, investments in shares/stocks/bonds/debentures, leasing, hire-purchase, insurance business, chit business or involved in the receiving of deposits under any scheme or arrangement. NBFC are under the purview of power the Reserve Bank of India (RBI) and in this page we will discuss about the procedure of NBFC Registration in India and some of the regulations which govern its operations in India.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 with activities similar to that of a bank, except for the following differences:

• It cannot accept demand deposits
• It cannot issue cheque drawn on itself
• Bank deposits are insured by Deposit Insurance and Credit Guarantee Corporation. However, deposits in NBFC's are not insured.

NBFC's like banks except for the above differences are engaged in the business of making loans and advances, acquisition and trading of shares/stocks/bonds/debentures/securities, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. Also a company which is in the principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company.