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NBFC Registration in Madurai & Karur

We Corpstore Business Solutions is one of the leading business services platform that offers you NBFC registration in Madurai and Karur. Non-Banking Financial Companies (NBFCs) are fast emerging as an important segment of the rapidly-growing Indian economy. NBFC offers almost all services that banks do including performing financial intermediation, accepting deposits, giving cash advances, offering loans, leasing, hiring purchase, etc.

Due to the lack of banking institutions in many areas and increasing demand for loans NBFC more and more people are able to have a profitable business in India than ever before. Moreover, NBFC can raise funds from the public, directly or indirectly, and can freely allow them to ultimate spenders. Non-Banking Financial Company is a company incorporated under the Companies Act, 2013 or The Companies Act 1956 which is engaged in financial activities comparable to that of a bank. The types of NBFCs are Asset Finance Company (AFC), Investment Company (IC) and Loan Company (LC). Mutual benefit finance company, Infrastructure finance company, Micro finance institution etc.

Advantage of NBFC Registration
  • Loans and advances
  • Acquisition of shares/ stocks/ securities/ bonds/ debentures issued by the Government or other authorities,
  • Leasing,
  • Chit business
  • Insurance business,

Differences between NBFC and Bank

    A Non-Banking Financial Company carry out all the functions which are similar to that of a bank, yet it is not classified as Banks and differs in the following ways:

  • A Non-Banking Financial Company is not a part of payment and settlement system. It cannot issue cheques to its customers.
  • Unlike Banks, not all the NBFCs will accept demand deposits. NBFC can only accept demand deposits only when it makes a specific application and it is approved by the Reserve bank of India.
  • Unlike banks, Deposit Insurance facility of DICGC is unavailable for NBFC depositors.
  • According to the provisions of Reserve bank of India Act, 1934, no NBFC can carry out the activities of a non-banking financial institution without- Having Net Owned Funds of Rs. 2 crores.

  • Only when it has a valid Certificate of NBFC License issued by the Reserve Bank of India.

Documents required for NBFC registration:

  • PAN Card
  • Aadhar card
  • Proofs of directors and partners
  • Incorporation certificate
  • Bank statement
  • Company's financial statement
  • Memorandum of Association and Article of Association
  • Address Proof such as Bank Statement / Electricity, Mobile, Telephone Bill
  • Income tax registration copy
  • GST registration copy
  • Brief documentary of business activity