What is a Finance Limited Company?
A Finance Limited Company, also known as a Non-Banking Financial Company (NBFC), is a financial institution that provides banking services without holding a banking license. These companies are involved in activities like loans, advances, asset financing, investment, and more, but they do not accept demand deposits from the public. Finance companies play a crucial role in lending to individuals, businesses, and sectors that may not have access to traditional bank loans.
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Key Features of an Finance Limited Company
Finance Limited Companies provide a range of financial services, including loans, asset financing, leasing, and investment.
Unlike banks, Finance Limited Companies cannot accept demand deposits, meaning they do not provide savings or checking accounts.
Finance Limited Companies are regulated by the Reserve Bank of India (RBI) and must comply with specific regulations and guidelines.
Like other companies, a Finance Limited Company is a separate legal entity, allowing it to own assets, enter into contracts, and be sued in its name.
The liability of shareholders is limited to their share capital, protecting personal assets from business risks.
Benefits of Registering a Finance Limited Company
- Access to Capital: A Finance Limited Company can raise funds from various sources, including issuing debentures, term loans, or equity, making it easier to meet financial needs.
- Regulatory Oversight: Being regulated by the RBI adds credibility and ensures the company operates within strict compliance guidelines.
- Limited Liability Protection: Shareholders’ liability is restricted to the amount they have invested, safeguarding personal assets from business losses.
- Separate Legal Entity: The company operates independently from its owners, ensuring that ownership changes do not affect its operations.
- Wide Range of Financial Services: Finance companies can offer a variety of financial products, including loans, leasing, asset financing, and more.
Our Finance Limited Company Registration Services
At Legal India Tax, we offer end-to-end services for registering a Finance Limited Company, ensuring compliance with all necessary legal and regulatory requirements.
Our services include:
- Name Reservation: We assist in reserving a unique name for your Finance Limited Company with the Registrar of Companies (ROC).
- Digital Signature Certificate (DSC): We help in obtaining DSCs for directors, which are mandatory for filing electronic documents.
- Director Identification Number (DIN): We apply for DINs for all directors, which is required for incorporation.
- Drafting of MOA and AOA: We prepare the Memorandum of Association (MOA) and Articles of Association (AOA), outlining your company’s objectives and structure.
- RBI Approval Assistance: We guide you through obtaining the necessary RBI approval, which is mandatory for finance-related activities.
- Filing of Incorporation Documents: We handle the submission of incorporation forms and documents with the ROC to establish your company legally.
- Certificate of Incorporation: Once your company is registered, we provide you with the Certificate of Incorporation, officially recognizing your Finance Limited Company.
- PAN & TAN Application: We assist with applying for the company’s PAN and TAN, necessary for tax filings and compliance.
Documents Required for Finance Limited Company Registration
To register a Finance Limited Company, you will need the following documents:
For Directors and Shareholders:
- PAN Card (mandatory for Indian citizens)
- Aadhar Card (or other government-issued ID proof)
- Address proof (utility bill, bank statement, etc.)
- Passport-size photographs
For Registered Office:
- Proof of office address (rent agreement or utility bill)
- NOC from the property owner (if the office is rented)
Additional for RBI Approval:
- Financial projections and business plan
- Details of proposed financial activities
- Background of promoters and directors
Our Simple Registration Process
We simplify the process of registering a Finance Limited Company with the following steps:
- Consultation: We discuss your business objectives and guide you on the suitability of forming a Finance Limited Company.
- Documentation: We assist in collecting the necessary documents and preparing the required legal paperwork.
- Filing: We handle the submission of incorporation documents and RBI application forms with the respective authorities.
- Incorporation and RBI Approval: After receiving the ROC and RBI approvals, we deliver the Certificate of Incorporation and assist with setting up the company’s financial operations.
Why Choose Legal India Tax for Finance Limited Company Registration?
Reasons to choose Legal India Tax
Our team of experts ensures your Finance Limited Company is registered in compliance with all legal and RBI regulations.
We offer transparent pricing, with no hidden fees or extra charges.
We ensure quick processing of your company registration so you can start operations without delay.
We provide end-to-end services, from name approval to securing RBI approval, ensuring a hassle-free registration process.
Who Should Choose a Finance Limited Company?
A Finance Limited Company is ideal for:
- Entrepreneurs in Financial Services: Individuals or groups looking to provide financial services such as loans, asset financing, or investment.
- Businesses Looking for Investment Opportunities: Companies seeking to expand into financial services and raise capital from a variety of sources.
- Existing Financial Institutions: Firms looking to formalize their operations and obtain regulatory approval to expand their services.
Get Started with Your Finance Limited Company Registration Today!
Registering a Finance Limited Company is a critical step toward launching your financial services business. At Legal India Tax, we make the process simple and efficient, helping you achieve compliance and success in your venture.