NBFC Services

NBFC Registration
NBFC Takeover
NBFC Compliance
NBFC Funding
RBI Liasoining
Fintech Partnerships (Cibil, Underwriting, Software, Loan Book etc )

Get in Touch : +918750003325

About Us

Ajay & ASSOCIATES: We are a well-established chartered accountants in India and are engaged in providing chartered accountant services, financial and consultancy services, auditing services, internal auditing services, statutory auditing services, payroll accounting, project finance, industrial licensing, business process outsourcing services, income tax services, foreign collaborations services along with import export consultancy services. We are also recognized as providing services for company law matters, service tax matters, sales tax and vat matters.

With rich experience and credibility to back up, Sahu & Associates will always been able to meet the client’s specific requirement.

We are experienced chartered accountant in India, chartered accountant in Bangalore. We provide all kind of chartered accountant services in India, chartered accountant services in Bangalore in the field of accounting, auditing, business process outsource, income tax, financial services, company law matters, foreign collaborations, import-export consultancy, sales tax matter, service tax matters, etc.

What is NBFC ?

Any Non-Banking company carrying business of financial institution as its “principle business” will be a Non-Banking Financial Company more commonly known as “NBFC”.

Activities included in the definition of financial institutions:

– Financing,

– Whether by giving loans, advances or otherwise

– Acquisition of shares, stocks or securities

– Hire purchase

– Insurance – excluded by notification

Exclusion to NBFC:

– If principal business is industrial, trading, etc.

How to check if the principle business is of financial institutions ?

Financial activity is considered as principal business of the company when:

– a company’s financial assets constitute more than 50 per cent of the total assets (netted off by intangible assets) financial assets to include all assets that are financial in nature, exception: cash, bank deposits, advance payment of taxes and deferred tax payments

– income from financial assets constitute more than 50 per cent of the gross income.

A company which fulfils both these criteria will be registered as NBFC.

 Are NBFC’s required to be registered with Reserve Bank of India (RBI) ?

In general, NBFC has to register itself with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. But there are certain category of NBFC which need not require registration with RBI but requires registration with other regulatory authority, for example:

– Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI,

– Insurance Company holding a valid Certificate of Registration issued by IRDA,

– Nidhi companies as notified under Section 620A of the Companies Act, 1956,

– Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982,

– Core Investment Company with asset size of less than Rs. 100 crore, and those with asset size of Rs. 100 crore and above but not accessing public funds are exempted from registration with the RBI

Who We Are

In India, the profession of chartered accountancy is regulated by the Institute of Chartered Accountants of India which was established by Parliament under the Chartered Accountants Act of 1949. Since then, the term Chartered Accountant has been used in place of Indian Registered Accountant. Prior to 1949, Restricted State Auditors were registered with the respective princely states and British provincial State Governments. However, now, the Restricted State Auditors have become redundant.

ICAI continues to keep the membership alive through yearly payment of prescribed fees. Associate member of the ICAI are only entitled to use the designation of Chartered Accountant along his name and also use the designatory letters as CA. as prefix to his name from 07-08-2009. Members who are in full-time practice, and have completed 5 years of practice, can add F.C.A. as prefix to their names.[9]

As of May 2012, ICAI had more than 193,500 registered members.[10] It has three levels – CPT (Common Proficiency Test), then IPCC(Integrated Professional Competence Course) , after which one undergoes a 2.5 year training period as Article Clerk in an Auditing Firm, or under a senior auditor. After this period, they write the Final Exams and obtain the result. After final exams also there is 4 – 6 month training. Overall it is almost 3 years training. Totally to complete ca it takes 4.5yrs.

 Are NBFC’s required to be registered with Reserve Bank of India (RBI) ?

Based on the nature of business it can be classified into following category:

– Asset Finance Company (AFC)

– Investment Company (IC)

– Loan Company (LC)

– Infrastructure Finance Company (IFC)

– Systemically Important Core Investment Company (CIC-ND-SI)

– Infrastructure Debt Fund

– Micro Finance Institution (NBFC-MFI)

– Factors (NBFC-Factors)

Can all the NBFC registered with RBI accept deposits ?

All NBFCs are not entitled to accept public deposits. Only those NBFCs to which the Bank had given a specific authorisation and have an investment grade rating are allowed to accept/ hold public deposits to a limit of 1.5 times of its Net Owned Funds.

Also, NBFCs cannot accept deposits from NRIs except deposits by debit to NRO account of NRI provided such amount does not represent inward remittance or transfer from NRE/FCNR (B) account.

What are the requirements for registration with RBI?

A company incorporated under the Companies Act, 2013 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:

– it should be a company registered under The Companies Act, 2013

– It should have a minimum net owned fund of Rs. 200 lakh.

What is the procedure for application to the Reserve Bank for Registration?

The procedure for registration of NBFC will be as follows:

– The main objective of the company needs to be altered to include NBFC activities

– Check the eligibility of the company for registration as NBFC

– Download the e-from from https://cosmos.rbi.org.in/. At this stage, the applicant company will not need to log on to the COSMOS application and hence user ids are not required.

– Get the required certificate from statutory auditor / chartered accountant.

– Arrange other supporting documents

– Fill up and submit the softcopy of e-form at RBI website (https://cosmos.rbi.org.in/)

– Obtain the printout of successful submission of the softcopy. Mention the date of submission on the print if date is not appearing on print.

– Prepare the hardcopy of the application in triplicate and submit two copies of the same to the regional office of RBI and keep one copy with you for future reference.

Commencement of business:

– NBFC must commence its business within 6 months from the date of Certificate of Registration (COR)

– If not commenced within 6 months the date of Certificate of Registration, the COR will stand cancelled

– No change in control is permitted till the commencement of business

What are the supporting documents to be submitted to RBI for NBFC registration ?

Different type of NBFC may have different documentation requirements, below are few basic documentation requirements: –

– Certified copies of Certificate of Incorporation and Certificate of Commencement of Business in case of public limited companies.

– Certified copies of extract of only the main object clause in the MOA relating to the financial business.

– Board resolution stating that:

a) the company is not carrying on any NBFC activity/stopped NBFC activity and will not carry on/commence the same before getting registration from RBI

b) the company has not accepted any public deposit, in the past (specify period)/does not hold any public deposit as on the date and will not accept the same in future without the prior approval of Reserve Bank of India

c) the company has formulated “Fair Practices Code” as per RBI Guidelines

– Copy of Fixed Deposit receipt & bankers certificate of no lien indicating balances in support of NOF

– For companies already in existence, the Audited balance sheet and Profit & Loss account along with directors & auditors report or for the entire period the company is in existence, or for last three years, whichever is less, should be submitted

– Copy of the certificate of highest educational and professional qualification in respect of all the directors

– Banker’s report in respect of applicant company, its group/subsidiary/associate/holding company/related parties, directors of the applicant company having substantial interest in other companies The Banker’s report should be about the dealings of these entities with these bankers as a depositing entity or a borrowing entity.

– Certificate from Statutory Auditor / Chartered Accountant.

Our Services

Ajay & ASSOCIATES: 1. Design, implementation and review of accounting manual
2. Advice on various accounting issues including those related to Indian GAAPs, International GAAPs, US GAAP & IFRS.
3. For local, national & international clients.

We provide IFRS conversion Services in India as IFRS is being made compulsory on few segments wef 1st April, 2012. We are Famous Chartered Accountant in India Delhi on IFRS conversion
We use Tally Software. Our Accountants are expert in doing Book-Keeping & Accounting. We do Book-keeping at our office as well as Client Premises. You can out source your Accounting Function to us and concentrate on your core activity. We shall take care of all you Accounting & Book-Keeping function.
We are expert in USA Accounting Software ie, Quick Book and UK Accounting Software ie, Sage & Myob. We can also do remote accounting. This makes us famous CPA in India Bangalore.