Incorporation

445 views 4 replies

Dear All,

I want to incorporate one Construction and other Equipment renting company. Will it be treated as 'Equipment Leasing Company' and consequently NBFC?

 

Regards'

CS Pooja

Replies (4)

 

The NBFCs that are registered with RBI are:

  • (i) equipment leasing company;
  • (ii) hire-purchase company;
  • (iii) loan company;
  • (iv) investment company.

With effect from December 6, 2006 the above NBFCs registered with RBI have been reclassified as

  • (i) Asset Finance Company (AFC)
  • (ii) Investment Company (IC)
  • (iii) Loan Company (LC)

AFC would be defined as any company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive / economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines.

Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.

 

Do you mean my company will qualify as NBFC?

Yes it does.

other views are solicited

but my company is not going to finace the renting.it will only give the machinery manufactured by group company on rent.Still it will be NBFC?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details