NBFC License and Registration with RBI in India
Non-Banking Financial Company (NBFC) is a financial institution engaged in the business of receiving loans and advances, acquisition of stocks or shares, leasing, hire-purchase, insurance business, chit business under Companies Act. The Reserve Bank of India, regulates the NBFC registration in India.
NBFC can commence its operations only after obtaining “Certificate of Registration” from the RBI. NBFCs operations are regulated on the basis of the Reserve Bank of India directions under Reserve Bank of India Act, 1934. NBFCs have to follow the rules & regulations laid down by RBI but they do not hold the banking license. As per the provisions mentioned in Chapter III B of the RBI Act 1934, NBFCs functions are regulated and supervised by RBI.
For obtaining NBFC license, registration must be done according to rules & regulations given in Section 45-IA of the RBI Act 1934.
As per the rules and regulations prescribed by the Reserve Bank of India, main business activity of the NBFCs is to raise capital funds from public depositors and investors and then lend to borrowers. Eventually, NBFCs is becoming alternative to the banking and financial sector. Only after obtaining “Certificate of Registration” from the RBI, this type of financial institution can commence its operations.
For obtaining NBFC license, here are the following NBFC registration requirements:
- For starting NBFC registration process, company must be registered as public limited company or private limited company in India.
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There is a requirement of minimum net owned fund of Rs.2 Crore.
*Provided that, net owned funds should be calculated according to the last audited balance sheet of the company.
- NBFCs are allowed to accept and renew public deposits for a minimum period of twelve months and maximum period of sixty months.
- Deposits repayable on demand cannot be accepted by NBFCs.
- In NBFC, interest rates offered cannot be higher than the ceiling rate prescribed by RBI from time to time.
- In NBFC, offering gifts or incentives or any other additional benefit is not allowed to the depositors.
- Minimum investment grade credit rating is required.
- Repayment of deposits by NBFCs is not guaranteed by RBI.
- Furnishing hard copies of the list of documents with the regional officer of the RBI.
Types of NBFC
Here are the following type of NBFCs can be registered with the RBI:
- Deposit Accepting NBFCs (NBFCs-D) [Deposit Taking]
- Non-Deposit NBFCs (NBFCs-ND) [Non-Deposit Taking]
a. Systematically Important NBFCs-ND (NBFCs-ND-SI)
b. Others NBFCs-ND
NBFCs are further classified into following categories:
- Asset Finance Company (AFC)
Asset Finance Company is a type of company involves in financing physical assets such as automobiles, material handling equipment and industrial machines supporting economic activity.
- Investment Company
It is a type of financial institution whose principal business is related to acquisition of securities.
- Loan Company
Under this type of financial institution, finance is provided in the form of loans or advances. They obtain funds by taking deposits from the public and give loans to small scale traders.
- Infrastructure Finance Company
There is a Net Owned Fund of Rs.300 Crore, Credit rating ‘A’ or equivalent credit rating, CRAR of 15% and 75% in infrastructure loans.
- Systemically Important Core Investment Company (CIC-ND-SI)
Systematically Important Core Investment Company (assets of hundred crore and above) is a company who have deployed at least 90% of its assets in the form of investment in shares or debt instruments or loans in group companies. Public Funds are accepted by such type of companies. Under this, 60% should be invested in equity shares or those instruments which can be compulsorily converted into equity shares out of 90%.
- Infrastructure Debt Fund (IDF-NBFC)
Infrastructure Debt Funds can be set up either as a trust or as a company and they are meant to infuse funds into the infrastructure sector.
- Mutual Benefit Finance company
Under this, loans are provided to their members only and their main sources of funds are share capital, member deposits & public deposits.
- Chit Fund Company
Under this, deposits are collected from members on a periodic basis and distribute these funds among them as prizes. Members who enter into an agreement with chit Company subscribe for a definite period. They are governed by states.
Process of NBFC registration with RBI
- Acquire DSC and Din for directors;
- File name approval application;
- Affidavit from directors to fulfill RBI compliance;
- Drafting of MOA & AOA;
- File incorporation forms with necessary documents;
- Obtain certificate of registration from Registrar of Companies;
- Deposit Net Owned Funds in bank account opened for company;
- Apply for registration with RBI under RBI ACT, 1934;
- An online application has to be filed by the applicant company with the RBIon its official website;
- After this, an applicant will get a reference number;
- After this, submit the duplicate hard copies to the concerned regional office of RBI;
- The regional office of the RBI shall verify the accuracy of all submitted documents.
- For NBFC registration, regional office will send an application to the central office.
- NBFC registration is granted by the central office of the RBI when applicant company fulfills prescribed requirements under section 45-IA.
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Private Limited Company Registration - Process & Documents Required
Private Limited Company Registration
A Private Company is a corporate entity having a legal existence and right to hold property or asset in its own name. Private Limited Company is one of the most common types of company registration in India; it is the most widespread and most popular type of corporate legal entity. Being a legal entity it can sue and be sued too. In case you wish to register a private company, it must be registered under the Companies Act 2013.
At initial level and as a startup you may start as the private company initially and later if you wish you may go for conversion of the private limited company into the Public limited company. Private Company registration has less compliance when compared to the Public limited company compliances.
The word "Private Limited" must be added at the end of its name by a Registered Private Limited Company
Online Private Limited Company Registration
Not only private company, even public company or OPC registration process is completely online now. Private Company registration is done on the MCA (Ministry of corporate affairs) Web portal. This makes the Private company registration suitable and easy. Now, one can register a company from anywhere in the world. One can access the MCA web portal and register the company.
For an online Private company registration, one needs to file e-forms online along with required documents. However one may also take the help of Private company registration expert to register its company. Swaritadvisors are the first choice of entrepreneurs willing to go for company registration.
Follow the Effective Methods to Register Your Private Limited Company
Establishment of your business and its launch in the market is very important and you need to comply with all the legal requirements which is a crucial phase. Entrepreneurs generally focus on the set-up of their business and its launch without concerning about the legal procedure of registration process of the private limited company registration. If you are planning to get in touch with the professionals then Swarit Advisors can be very helpful to you. It is difficult to approach the experts at your local place and it could be costly as well. But Swarit Advisors gives the reliable services through online private limited company registration procedure.
Follow the most effective method to Enlist your Private Limited Company without Any Hassle
You can easily guarantee impeccable beginning of your business without facing any problem in the legal part of the company registration by following the steps provided below.
Stage 1: Digital Signature Certificate
The staffs engaged with organization formation in India are Subscribers and Directors for the proposed organization. The Subscriber is a person who is the promoter of the organization. And the shareholders or investors are required to file e-MOA and e-AOA by attaching DSCs whereas proposed directors will acquire DIN by filing an online application in the following step.
Documents Required for the Digital Signature Certificate Are:-
- Passport Size photograph of the applicant,
- Self-attested address proof of the applicant,
- Self-attested PAN Card of the applicant,
Stage 2: Get Your DIN (Director Identification Number): -
DIN is a number which is uniquely assigned to the proposed directors by the Ministry of Corporate Affairs to the one who is willing to be appointed as directors in the company. DIN can be obtained directly through SPICE.
Stage 3: Name Proposal Reservation For Your Company: -
Prior to apply the application to consolidate and register your Private Limited Company in India, the name for the proposed organization must be reserved. An Application for the reservation of the name of the Private Limited Company will be made in the e-Form RUN by making payment of the fees. The hired professional will firstly check for the availability of the name before filling for the application. The Registrar appreciates 100% discretion for the endorsement of name application. You must consider the following points while selecting the name of your organization.
- The name that you are suggesting for your company should be easy to remember and spell,
- It must be able to give a distinct identity to the company and should be simple and short,
- It must not contain any word against the public policy or which are prohibited to use,
- It must not infringe any trademark registered name or must not be similar to any other company.
The Registrar will select any of the mentioned names and reserve it if found suitable.
Stage 3: Incorporation Application
Once the name reservation is done by submitting the RUN form then incorporation application will be filed in e-form SPICE. The MOA & AOA must be drafted for the incorporation of the private limited company. MOA defines the scope of operations in the company by enumerating the activities and the main objective of the company. Whereas Articles of Association defines how the operations are to be carried out in the company. Both MOA & AOA plays a vital role and hence they must be carefully drafted under the expert advice.
Documents Required to be Submitted with Application
- Copy of the self-attested identity proof of the director and the subscriber,
- Affidavit and declaration by the first subscriber and the director in the form INC-9,
- Rental agreement, rent receipts if premises are on rent,
- Consent to work as Director in the Form DIR-2,
- Utility Bill & NOC from the owner of the registered office address.
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Operate in the food business with Food License
A food license is one of the keys and mandatory registrations that need to be procured by all kinds of food business operator (FBO) in India. An FBO is defined as any kind of public or private business entity that is involved in any stage of manufacturing, packaging, processing, storing, transporting, distributing, importing, selling of food services or raw materials, marketing, retailing etc.s
Why Food License?
FSSAI (Food Safety and Standards Authority of India) is the apex body that certifies an entity with the Food safety license. The FSSAI was set up in accordance with the Food Safety and Standards Act, 2006. The primary objective of the organization is to ensure the availability of safe and wholesome food that is meant for consumption by human beings. The license is also an effective method to make FBOs accountable and responsible for the food quality. Other than safety, the FSSAI also is entrusted with the task of overseeing that sub-standard food is not sold in the country and that all articles of food available for consumption are free from adulteration.
The penalty of operating any of the above-mentioned business without the food license is enough to attract punishment including imprisonment of up to six months and payment of fine up to Rs. 10 lakh.
Types of FSSAI Food License
Depending upon the annual turnover of the business entity and/or size of the operations of the entity, the following types of license are given:-
- Central license – EOUs, all importers, entities with an annual turnover of more than Rs. 20 crores, FBOs with operations in more than one state, manufacturers with large-scale operations, for example, a meat processing unit with more than 500 kg meat every day or 150 MT per annum.
- State license – is applicable for a business that has annual turnover more than Rs. 12 lakh but less than Rs. 20 crore, medium-sized manufacturing units like a meat processing unit with a capacity to process up to 500 kg meat every day or 150 MT per annum.
- FSSAI registration is meant for smaller scale business that has less than Rs. 12 lakh turnover in a year. For example, a slaughtering house that slaughters 2 or less than 2 large animals or 10 or less than 10 small animals or up to 50 poultry birds every day are eligible for the basic registration.
- Railway license applicable for Konkan Railways
All the above types of FSSAI license have a maximum validity of five years and minimum validity of one year.
Procedure for obtaining Food Safety License in India
- In order to apply for the Central food safety license and the state food license Form, B needs to be filled up. For the basic FSSAI registration, Form-A needs to be filed.
- In order to obtain the basic registration and state license, the food license application needs to be made to the regional FSSAI office of the state government where the operation is based. The Central license needs to be obtained from the central government.
- The documents that are required differ for all the three types. The common documents required are –
- Detailed list of partners, promoters, members with contact details
- List of equipment and machinery, the capacity and the horsepower being used.
- Government Identity and address proof of the directors, proprietors, partners
- A complete list of all food categories being manufactured
- Ownership proof of the premises.
- Rental agreement and NOC from the owner in case of rented property.
- Utility bills
- Certificate of Incorporation, Memorandum and Articles of Association, Partnership Deed.
For Food license online, the FBO needs to register at the Food Licensing & Registration System (FLRS). After registration, the operator needs to log in, fill up the requisite Form online, upload the documents required and make the payment.
The concerned authorities will review all documents and the application form. If satisfied the relevant license is issued. The FSSAI license is a 14-digit number that needs to be printed on the packaging at all times.
Source url - http://swaritadviser.bravesites.com/entries/general/operate-in-the-food-business-with-food-license
Process for changing a Company Name
After company registration and during the course of business the members can decide to change the legal name of the Company due to many reasons. In this article, we are going to discuss in detail what could be a reason for such change in name of the company and are the procedure defined for implementing such change under Companies Act, 2013.
Reasons to Change Company Name
There can be various factors influencing the decision to change the company name. We have listed out a few possible factors which can be a reason behind the decision of changing the name of the organization:
- Change in Business activity
If you are planning to change the main objects of your company entirely or even adding a different business vertical you can decide to change the company name. This change can be done with a view to making sure that the name is in reference to the new or changed the main objects of the organization.
- Name is outdated
If your company has been in operation from a number of years and you feel that the name with which it is operating is outdated then you can change the name of the organization after discussion among all the members. This is done in cases where the name either does not have a recall value or is old fashioned.
- Change in ownership
If there is any kind of changes happening in the ownership of the organization as a result of the transfer of business then it can also lead to a change in company name. The new owners can choose a name more preferred by them.
- Acquisition, Merger or Takeover
Apart from the above-mentioned reasons the change in company name can also happen as a result of acquisition, merger or takeover of the business.
Company Name Change Procedure
In order to change the name of a company following steps are required to be followed by the company:
STEP 1: Pass Board resolution
The very step is to conduct a board meeting and pass a BR to appoint an authorized representative for filing an application with MCA for name availability and also to issue notice for conducting an EGM for change company name.
STEP 2: File Name reservation Application
The second step is to apply for name reservation through Reserve Unique Name facility available on the MCA portal. You have an option to apply with a maximum of two names. While filing RUN chooses the name change option and enters your Corporate Identification Number (CIN). After verification, the authorities will approve a name and issue name allotment letter
STEP 3: Pass Special Resolution
Call an Extraordinary General Meeting (EGM) to discuss the issue of the company’s name change and incorporating such changes in AOA and MOA of the company. After discussion passes a Special Resolution of the effect.
STEP 4: File MGT-14
MGT-14 is required to be filed within 30 days of passing special Resolution. Following documents must be submitted as attachments:
- Copy of notice of EGM along with explanatory statement
- certified Copy of special Resolution
- Altered copies of AOA and MOA
STEP 5: File e-Form INC-24
Once MGT-14 is approved by the authorities the next step is to apply for central Government approval for the same. As central government approval is essential for changing the name of an already registered company. For this purpose, an application is required to be filed in e-Form INC-24 (Application for approval of Central Government for a change of name). This form is required to be submitted along with the applicable fees of Rs. 2500/-. Information relating to the Extraordinary General Meeting along with reasons of this name change is to be mentioned in the e-Form INC-24.
STEP 6: Issuance of Amended COI
After proper analysis of the documents if the registrar is satisfied with the reasons for such a change in company name, then a fresh Certificate of Incorporation is issued to the applicant. With this, the change in the company name is completed.
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Get Complete Guide for GST Registration Online – Eligibility Process & Fees
If you are going to start your business related to goods and services then applying for GST Registration is the very first thing that needs your attention. So if you are unclear about the eligibility criteria, online GST registration procedure, fees structure, and anything then this article will be a complete guide for you. Let’s understand its meaning and importance firstly.
GST registration is the process in which we apply for goods and products business registration as a normal taxpayer only when the turnover exceeds the amount of Rs 20 lakhs only. The threshold limit in North Eastern & Hilly States is about Rs 10 lakhs. If you are carrying your business without the registration then you will be considered as the defaulter in the eye of law and you will be liable to pay a heavy penalty. Any business whose turnover exceeds the limit of Rs 20 lakhs are supposed to apply for GST registration. Businesses that are registered under the pre-GST regime such as Excise, Service Tax, VAT, will also be registered under GST.
Businesses that are mandatory to be registered Under GST irrespective of the turnover: -
- Every business that is already registered under the VAT, Excise, Service Tax, etc.
- A casual taxable person,
- Input service distributor,
- Non-resident taxable payer,
- If a business is transferred to any other party then the transferee will be responsible for registering his business w.e.f the date of the transfer.
- A person who supplies via e-commerce aggregator.
What Are The Documents Required For GST Registration?
- Valid bank account number & details from India,
- Valid Permanent Account Number(PAN)
- Valid phone number & email address,
- Prescribed documents & information on mandatory fields of the registration application,
- Address of the Place of the business,
How To Hire Expert for GST Registration Procedure?
You may get started with the online GST registration procedure via the Government GST online portal or GST Seva Kendra. We can provide you a step-by-step guide on how to register under the GST. Swarit Advisors is the best consulting firm where experts are 24*7 hr available to help you. You need to contact us through the phone number or the email so that we can approach you.
What is the Fee for the GST Registration?
There is no registration fee for GST, you simply need to log in to the online GST portal and follow the steps required for the GST registration process. In a business gets fail to register under GST then he has to pay the penalty of about 10% of the amount due, subject to a minimum of Rs 10,000. If the tax evasion is intentional then the penalty will be liable to 100% of the due tax amount.
If a business is carried out in a different state then separate registration for each state is required. There is a scheme called GST Composition Scheme, where firms can pay tax as a fixed percentage of their turnover. It is a convenient tax scheme for small and medium enterprises. A dealer who deals only in the intra-state of goods and service of restaurant sector may avail composition scheme, or who don’t supply non-taxable goods or not an e-commerce operator, or pays tax at normal rates, or is not a manufacturer of ice-cream, tobacco or pan masala, etc. The floor rate of tax for the CGST &SGST should not be less than 1%. And the turnover of an enterprise must be upto 1.5 crore Rs, whereas in the case of the North-Eastern States or Himachal Pradesh it should be 75 lakh Rs only.
If you have any queries in your mind or need to hire a professional then you are at the right platform where we provide guidelines to avoid technical issues while applying online for the GST Registration. We are just a call away from you.
Know All About Producer Company Registration In India
Producer Company is a legal entity which includes agricultural produce, forest produce and where members are primary producers. Producer company registration comes under the Companies Act, 2013. It was enacted in 2003 under the Section IX-A of Indian Companies Ac, 1956. Producer Company can be created by 2 or more producer institutions, or 10 or more producers (those who are involved in farming activities). It possess only equity capital and requires minimum 5 directors & an authorized capital of Rs. 5 Lakh only. The procedure for the Producer Company Registration is very much similar to that of a private limited company.
What are the Documents Required for Producer Company Registration?
- KYC of directors & Shareholders of the Producer Company.
- Scanned copy of PAN card or passport,
- Voter ID’s scanned copy,
- Latest bank statement scanned copy,
- Passport sized photograph,
- Specimen signature (directors only).
Know the Basic Type of the Producer Company Registration?
- When a business is involved in the manufacture, procurement, or production of the primary produce for its members for further sale, comes under the category of Producer Company.
- If a business is simply involved in the promotion or marketing of primary produce or in the provision of educational services to its members or others comes under the category of Marketing Businesses Producer Company.
- Any business which offers technical assistance to the farmers, producers, training providers, or educational service providers or conducting research and development in terms of agriculture can register as a Technical Service Businesses Producer Company.
- Any company who is involved in the financial producer activities for the production, marketing, and development, of primary produce can register itself as Financial Businesses Producer Company.
- Those businesses who are involved in providing infrastructure to producers either in the form of water resources, electricity, irrigation techniques, land utilization or consultation regarding the same may register them as Infrastructure Service Businesses Producer Company.
What is the Share Capital & Voting Rights in Producer Company?
The share capital of the producer company contains equity shares only. The minimum required paid-up share capital is Rs 5 lakhs only. The equity of members is not allowed to be traded publically but can be transferred.
When the membership is of only individuals then the voting rights will be based upon the single vote for every member. And when the membership is only of the producers then the voting rights will be based upon their participation only.
The process of Producer Company registration is tedious and time-consuming. You may take assistance from Swarit Advisors to start your own Producer Company. Once you reach us through our phone number or email, our experts will surely assist you with step-by-step solutions and guidance. So, what are you waiting for, make a call to us, we will prove to be one stop solution to us.
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