Hi,
In my view, RBI does not allow LLPs to do NBFC Business as the Definition of NBFC itself says - A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property.
In fact RBI has even prohibited NBFCs form being partners in partnership firms including LLPs...
So it has to be registered as a company, be it public or private for the same....
Regards
we are planning to work in stock market by opening demat account, so if we form company , it will be defined as investment company , which is by default treated as NBFC as per business code allotted by ROC . so which is best form of organization for this purpose ( Partnership Firm, LLP or Pvt Ltd Company ) we may take loan from outsiders in this organization.
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