CA Smita Khurana
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Position of Law -Definition of NBFC as per Section 45 of the RBI Act 1934 Analysis of Press release issued by RBI on NBFC Dated 8th April 1999 Analysis of Section 3:Reserve Bank of India Act 1934 Clause (f) of Section 45I Quote "non-banking financial company'' means- (i) a financial institut
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FAQ :
No, the RBI's provisions for Non-Banking Financial Companies (NBFCs) are not applicable to LLPs. This is because NBFCs are defined as 'companies' under the RBI Act, and LLPs do not fall under this definition.
As per Section 45I(f) of the RBI Act 1934, an NBFC is a financial institution that is a company, or a non-banking institution that is a company, whose principal business involves receiving deposits or lending. The RBI may also specify other non-banking institutions as NBFCs.
An LLP, or Limited Liability Partnership, is defined by the Limited Liability Partnership Act, 2008, as a partnership formed and registered under that specific Act.
For the purposes of the RBI Act, a 'company' is defined as per Section 3 of the Companies Act, 1956 (or Section 2(20) of the Companies Act, 2013), and includes a foreign company.
Yes, an LLP can be converted into a Private Limited Company under Section 366 of the Companies Act, 2013, provided certain conditions are met, including approval from all partners and adherence to specific procedural requirements.
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