Nbfc formation

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Shruti Mishra (Querist)

10 March 2015 I am trying to understand the formation process of NBFC, and know the firstly we have to form a company i.e registering with the ROC and then once formed, we have to apply for registration with the RBI

Do we have to take prior approval from RBI while filing Form INC-1 (application name) for NBFC ? Could you please elaborate the procedure to me in specific.

Also the capital needs to be 200 Lacs for NBFC Co. what are the other requisites wrt no. of directors etc ?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

10 March 2015 The first step is to form a new Company registered under the Companies Act, 2013. The name must reflect the character of an NBFC. Words such as Investment, Finvest, Finstock, Finance etc. may be used as part of the name. In general, RBI does not allow names which are not reflecting the characteristics of NBFC.

You should take prior approval of RBI while filing Form INC -1.

There is no specific requirement for minimum /maximum no. of directors for NBFC.

Shruti Mishra

Shruti Mishra (Querist)

10 March 2015 Dear Mitesh, Thanks for your response. Would want to know what kind of approval to be taken in RBI ? What is the procedure for the same

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

11 March 2015 Write a letter to regional office of RBI stating that it is proposed to incorporate the company (MENTION THE NAME OF PROPOSED COMPANY) for carrying NBFC activities

You should mention in detail proposed activities of the company & request for NOC.

Once you received letter from RBI for no objection attch the same in INC -1

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