Non Banking Financial Company (NBFC)

S.no	Form/Return	Purpose of Return or document	Applicability	Due date
1.	NBS-1 Return (on Financial Indicators by deposit taking NBFCs)	To capture financial details, viz. components of Assets and Liabilities, Profit and Loss account, Exposure to sensitive sectors etc.	All NBFCs accepting/holding public deposits	Within 15 days from the end of Quarter
2.	NBS-2 Return (on Prudential Norms by deposit taking NBFCs)	To capture compliance with various prudential norms, e.g. Capital Adequacy, Asset Classification, Provisioning, NOF etc.	All NBFCs accepting/holding public deposits	Within 15 days from the end of Quarter
3.	NBS-3 Return (on Liquid Assets by deposit taking NBFCs)	To capture details of Statutory Investments in Liquid Assets (Central/State Government Securities, Fixed Deposits in Scheduled Commercial Bank etc.)	All NBFCs accepting/holding public deposits	Within 15 days from the end of Quarter
4.	NBS-4 Return (on status of public deposits by NBFCs whose CoR is rejected by the Bank)	To know the repayment status of public deposits of rejected NBFCs- D this return is being called for.	All NBFCs accepting/holding public deposits	Within 30 days from the end of year
5.	NBS-7 Return on Prudential Norms	To capture compliance with various prudential norms, e.g. Capital Adequacy, Asset Classification, Provisioning, NOF etc.	All NBFCs-ND-SI	Within 15 days from the end of quarter
6.	NBS-8 Return on Financial Indicators	To capture profile information and financial details, viz. components of Assets and Liabilities, Profit and Loss account, Exposure to sensitive sectors, Branch Information etc.	NBFCs (non-deposit taking) with assets size between ₹100 crore to ₹500 crore.	Within 60 days from the end of year i.e. 30^th May
7.	NBS-9 Return on Financial Indicators	To capture profile information and financial details, viz. components of Assets and Liabilities, Profit and Loss account, Branch Information etc.	NBFCs (non-deposit taking) with assets size below ₹100 crore	Within 60 days from the end of year i.e. 30^th May.
8.	Asset-Liability Management (ALM) Return (For deposit taking NBFC)	To address concerns regarding Asset Liability mismatches and interest rate risk exposures, an ALM System was introduced for the deposit taking NBFCs as part of their overall system for effective risk management.	To be submitted by NBFCs accepting/holding Public Deposits with asset base of ₹ 100 crore & more, or holding public deposits of ₹ 20 crore or more (irrespective of their asset size), as per their latest audited balance sheet.	Within 30 days from the end of half year.
9.	NDSI_ 500cr Return on Important Financial Parameters	To capture financial details, viz. components of Assets and Liabilities, Profit and Loss account, Exposure to sensitive sectors, sectoral deployment of credit etc.	All NBFCs-ND-SI	Within 15 days from the end of quarter.
11.	Branch Information Return	To capture the reach and geographical spread of NBFCs	NBFCs-ND-SI and NBFCs accepting /holding public deposits	Within 15 days from the end of Quarter
12.	Certificate on compliance with FDI norms:	To capture compliance with the stipulated minimum capitalization norms and that its activities are restricted to the activities prescribed under FEMA.	NBFCs having Foreign Direct Investment	Within 30 days from the end of Half year
13.	Overseas Investment Return	To capture details on overseas investment by NBFCs.	NBFCs (both deposit taking and non-deposit taking) having overseas investment	Within 15 days from the end of Quarter
14.	ARC Return	To capture financial parameters and various operational details e.g. assets (NPA) acquired, acquisition cost, their recovery status etc.	Asset Reconstruction Companies	Within 15 days from the end of Quarter.
15.	NBS-1A	Return on Financial Indicators by RNBCs to capture financial details, viz. components of Assets and Liabilities,	Residuary Non-Banking Companies (RNBCs)	Within 6 months from the end of year i.e. 30^th September.
16.	NBS-3A	Profit and Loss account, Exposure to sensitive sectors, Statutory Investments in Liquid Assets etc.		Within 15 days from the end of quarter.
17.	CRILC	Return on early Recognition of Stress on large accounts to facilitate early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders.	All NBFCs-ND-SI, NBFCs-D and NBFC-Factors	Within 21 days from the end of quarter.
18.	SMA-2 Return	Return on early Recognition of Stress on large accounts to facilitate early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders.		On every Friday of the week when the relevant account first came in SMA-2 category.
19.	Statement on Interest Rate Futures transaction	To know the extent of participation of NBFCs in Interest rate Future market.	NBFCs participating in IRF exchanges for hedging their underlying exposures	Within a period of month from the end of Half Year.
20.	Statutory Auditors Certificate (SAC):	Annual Certificate from Statutory Auditor to the effect that it is engaged in the business of non-banking financial institution requiring it to hold a Certificate of Registration granted under section 45-IA of the RBI Act to ensure continued regulatory compliance.	Every NBFC	One month from the date of finalisation of Balance Sheet. Not later than 31st December

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GST REGISTRATION

Following registered persons not required to file GSTR 1, 2 and 3 such as:

Goods and Services Tax (GST) is an indirect tax applicable to the supply of goods and services. It is a comprehensive, multistage, destination-based tax. It has subsumed almost all the indirect taxes except a few state taxes. It is collected from point of consumption and not point of origin like previous taxes.

TRADEMARK REGISTRATION

Documents attach in trademark application:-

A trademark can be registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India under Trademark Act, 1999 to protect the identity of any goods and services.

income tax

Some basic information about Income tax

An income tax is a tax imposed on individuals or entities commonly known as taxpayers that varies with respective income or profits. Income tax generally is computed on taxable income which is calculated after various deductions. Taxation rates may vary by type or characteristics of the taxpayer.

Private Limited Company

Basic Features to Read before starting private limited company

Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.

Public Limited Company

Features of Public Limited Company

MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .

Non Banking Financial Company (NBFC) :

Non-Banking Financial Company (NBFC) is establishments that offer banking and financial facilities without meeting any designated legal definition of the Bank. NBFC does not have banking license but is allowed to offer financial products and services to customers. These companies are entitled to assist people with critical banking services such as credit, loans, retirement planning, stocking and investing. It is important to note that an NBFC is different from bank in ways like an NBFC cannot accept savings and current account deposits, cannot issue cheques drawn on itself and its depositors do not get a deposit insurance and credit guarantee coverage. Granting loans is the foremost agenda of NBFC companies so as people are facilitated with their needs on time and at better interest.

All NBFC companies are capped under the Banking regulations which are significantly laid down by the Reserve Bank of India. All NBFC must strictly follow the rules and regulations provided by Reserve Bank of India from time to time. NBFC license must be taken from RBI u/s 45-IA of the RBI Act of 1934. RBI strictly regulates and ensure that the NBFCs are complying with the provisions and regulations provided in Chapter III B of the RBI Act.

There are two types of NBFC companies:

01

NBFC accepting deposits :-

NBFCs like investment companies, loan companies, and assets finance companies. These licensed companies by the RBI can basically accept deposits from the public.

02

NBFC without accepting deposits:-

These companies can only perform money lending facilities, but cannot accept any deposits from any individual.

Steps to Register as NBFC:

Step 1: NBFC should be register as a company under section 3 of the Companies Act 2013.
Step 2: Minimum Net Owned Funds of the Company should be Rs. 2 crore or more. It must comprise of only equity paid-up share capital. Preference share capital is not to be included.
Step 3: There should be atleast 1 director in the company from the same background. And he/she must be employed as a full-time Director.
Step 4: Good CIBIL score is required to present in order to register as NBFC.
Step 5: Next, visit RBI’s official website and fill in the application form.
Step 6: Submit all the required documents along with the application form.
Step 7: Once you have submitted the application form, a CARN number will be generated.
Step 8: Send the hard copy of the application to the regional branch of RBI.
Step 9: After the application is checked and verified, the License will be given to the company.

Registration Requirements for NBFC

NBFC’s in India are regulated by the Reserve Bank of India (RBI). As per RBI guidelines, An NBFC incorporated under the Companies Act, 2013 willing to commence a business of non-banking finance should comply with the following RBI guidelines:

It must be registered under Section 3 of the Companies Act, 2013.
It should meet the requirement of minimum of Rs. 2 crore of Net Owned Funds (except for NBFC-MFIs, NBFC-Factors and CIC). In case a foreign company is applying for the NBFC registration then the paid up equity share capital should be around 5 crore.
If any company is able to generate a solid financial flow of more than 50% from its initial capital investment, then the NBFC certification is mandatory.
It should be noted that at the time of applying for the NBFC registration, the net equity fund should be reserved as an evidence of eligibility of NBFC certificate in the bank account.

Documents Required for NBFC Registration

Certified copies of Certificate of Incorporation and Certificate of Commencement of Business in case of public limited companies.
Documents associated with the administration and management of the company.
A copy of PAN/Corporate Identity Number (CIN) of the company.
Documents related to the office location/address
Certified copy of extract of only the main object clause in the Memorandum of Association (MoA) relating to the financial business. and Articles of Association (AoA).
Bank account with minimum paid up equity share capital of INR- 2 Crore.
List of Directors’ profile duly signed by each director must be attached.
CIBIL/credit reports of the Directors of the Company are required.
A copy of the board resolution which certifies that the company has not carried out or stopped NBFC activity and will not carry any until the registration from RBI is granted.
Well audited financial accounts of the company for last three consecutive years.
Certificate specifying owned funds as on the date of the application from the Statutory Auditor is required.
Information detailing the company’s future plan, generally for the next 3 years, along with the projection of balance sheets, cash flow statement and income statement.
Duly filled-in up and signed Annexure-I,II and III.
Income Tax PAN etc.
And any other related documents if requested.

Registration Process:

After your company has been incorporated and has accumulated the minimum NOF, you need to follow the below procedure to get it registered as an NBFC with RBI:

An application along with all relatable documents as mentioned on the website should be attested and uploaded in the prescribed format. A Company Application Reference Number (CARN) is generated upon successful submission.
Copy of the above, and all demanded documents have to be submitted to the regional office of RBI under whose jurisdiction your company falls.
Upon successful verification of the entire documents, the regional office of RBI will send all the information to the central office of RBI.
If the company meets all the terms and conditions specified in Section 45-I A of the RBI Act, then, you will be able to get your NBFC registration certificate.