NBFCs or Non-Banking Financial Company are registered under the Companies Act 1956/Companies Act 2013. Though these do not possess a banking license, yet are involved in various financial services. Some of the services include:
Loan and credit facilities
Asset Financing
Acquisition of shares/stocks/bonds
Hire-purchase
Insurance business
Chit business
Currency exchange
Peer to peer lending
Hedge funds
And if the company is engaged in other activities, then it is not registered as an NBFC. Some of the activities are:
Agriculture activity
Industrial activity
Purchase/sale of any goods
Providing any services and sale/purchase/construction of the immovable property
Type-1: Deposit-taking (NBFC-D)
Type-2: Non-deposit taking (NBFC-ND)
Asset Finance Company (AFC): If the primary business of the company is to finance the assets of a firm, such as machines, automobiles, generators, material equipment, industrial machines, etc., it is called an Asset Finance Company.
Investment Company (IC): These companies deal primarily in securities.
Loan Companies (LC): The main business for these companies is to grant loans and advances. These loans are not for asset acquisition, but other purposes, such as working capital finance, etc.
Infrastructure Finance Company (IFC): The companies falling under this category own at least Rs. 300 Crore and deploy 75% of their total assets in infrastructure loans. They must also have a credit rating of A or above and a CRAR of 15%.
Systematically Important Core Investment Company: In case a company owns assets worth Rs. 100 crore or more and has deployed 90% of its assets in debt instruments or loans in group companies, then it is considered as CIS-ND-SI. Of the 90%, 90% should be invested in equity shares.
Infrastructure Debt Fund (IDF-NBFC): The investment of these companies is primarily in the infrastructure sector. These funds are crucial due to their scale, long gestation period, and long-term requirements.
If registered as a trust, it will be called IDF-MF under SEBI regulations.
If registered as a company, it will be called IDF-NBFC under RBI regulations.
Systematically Important Core Investment Company: In case a company owns assets worth Rs. 100 crore or more and has deployed 90 % of its assets in debt instruments or loans in group companies, then it is considered as CIS-ND-SI. Of that 90 %, 90 % should be invested in equity shares.
Infrastructure Debt Fund (IDF-NBFC): The investment of these companies is primarily in the infrastructure sector. These funds are crucial, as it is difficult to obtain them because of the scale of their requirements, long gestation period, and long-term needs. You can register such an entity either as a trust or as a company.
If it’s a trust, it will be a mutual fund under SEBI regulations and called IDF-MF.
If it’s a company, it will fall under RBI regulations and be called IDF-NBFC.
Mutual benefit financial company: A company whose main aim is to enable its members to pool their money toward pre-calculated investment objectives. Sources of funds are share capital and deposits from its members and the general public.
Micro Finance Institution (NBFC-MFI): A non-deposit-taking NBFC that has at least 85 % of its assets in the form of microfinance.
Housing Finance Company: As stated in their Memorandum of Association, these companies engage in housing finance and provide mid-term capital loans to individuals or firms. Because of less stringent regulations and greater flexibility, they can be a better alternative to commercial banks.
Core Investment Company: A business that acquires securities and shares. Such companies must hold 90 % of their assets in bonds, equity shares, and preference shares, with at least 60 % invested in equity shares.
Company Type |
Regulators |
|---|---|
|
NBFCs registered with RBI |
Column 2 |
|
Housing Finance Institutions |
Column 2 |
|
NBFC regulated by other regulators |
Column 2 |
|
Merchant Banking Company/Venture Capital Fund Company/Stock Broking/Collective Investment Schemes (CIS) |
Column 2 |
|
Nidhi Companies and Mutual Benefit Companies |
Column 2 |
|
Chit Fund Companies |
Column 2 |
|
Insurance Companies |
Column 2 |
Following are the requirements for incorporating an LLP in India:
Minimum two partners
At least one partner should be a resident of India
DSC for all designated partners
DPIN for all designated partners
Unique name of the LLP that is not similar to any existing LLP or company or trademark
Capital contribution by the partners of LLP
LLP agreement between the partners
Address proof for the office of LLP
The step-by-step procedure of LLP registration in India is as follows:
The incorporation cost of registering an LLP in India, including government and professional fees, is ₹8,499 Only with Professional Utilities.
Steps |
Cost (Rs.) |
|
|---|---|---|
1 |
Digital Signature Certificate |
₹3,000 |
2 |
Government Fee |
₹1,500 |
3 |
Professional Fee |
₹3,999 |
4 |
Total Fee |
₹8,499 |
Suitable for Startups
Suitable for Startups
Suitable for Startups
Documents of both the partners and LLP have to be submitted for incorporating a Limited Liability Partnership:
Documents of partners
ID proof of partners
Address proof of partners
Residence proof of partners
Passport size photograph
Passport (in case of foreign nationals / NRI)
Documents of LLP
Proof of registered office address
Digital Signature Certificate
The expert team at Professional Utilities can help you incorporate a Limited Liability Partnership in India. Register your LLP online in a fast and most affordable manner in three easy steps:
Registering a Limited Liability Partnership (LLP) in India offers businesses a flexible and legally recognized framework that merges the benefits of limited liability with ease of operation. It is especially ideal for startups, professionals, and small enterprises looking for an affordable substitute for a private limited company.
The registration of an LLP allows for smoother compliance, tax advantages, and legal protection, thus ensuring smooth business operations while protecting the interests of the partners. With Professional Utilities, you can make the registration process easier with expert support, ensuring seamless documentation and government approvals.
Start your LLP registration today and take the first step toward building a legally compliant and scalable business!
