NBFC ROC Compliance

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NBFC ROC Compliance

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956/2013 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing and services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a nonbanking financial company.

Documents For NBFC ROC Compliance

  • Memorandum and Articles of Association
  • Minutes of the Meetings
  • Statutory Registers
  • Audited Financial Statements i.e Balance Sheet and Profit & Loss
  • Shareholding records
  • Details of Directors
  • Any other documents

Features Of NBFC ROC Compliance

NBFC should be a Company registered under Companies Act 2013. So, the Compliance of Companies Act 2013 is a must for any Company which includes filing of timely returns & forms with Ministry of Corporate Affairs (ROC) i.e Annual Filing, change in registered office,

Change in directors, Auditor Appointment. Delay in filing returns or non-submission of returns can lead to heavy penalties and strict action by MCA.

MCA in the recent time has been very harsh on companies who are not compliant. At Compliance Calendar LLP, we can provide you a customized Compliance Calendar basis of your NBFC wherein we can cater to the ROC Compliance as may be applicable.

Exemptions from provisions of companies act 2013:

  • 1. CHAPTER V (ACCEPTANCE OF DEPOSITS BY COMPANIES) i.e Section 73 to 78: to a banking company and non-banking financial company as defined in the Reserve Bank of India Act, 1934 (2 of 1934) and to such other company as the Central Government may, after consultation with the Reserve Bank of India, specify in this behalf.
  • 2. SECTION 185 OF THE COMPANIES ACT 2013 i.e LOAN TO DIRECTORS : Shall not apply to a company which in the ordinary course of its business provides loans or gives guarantees or securities for the due repayment of any loan and in respect of such loans an interest is charged at a rate not less than the rate of prevailing yield of one year, three years, five years or ten years Government security closest to the tenor of the loan.
  • 3. SECTION 186 OF THE COMPANIES ACT 2013 i.e LOAN AND INVESTMENT BY COMPANY: Nothing contained in this section, except sub-section (1) shall apply in respect of investment or lending activities made by a non-banking financial company registered under Chapter III-B of the Reserve Bank of India Act, 1934 and whose principal business is acquisition of securities.
  • 4. SECTION 117 OF THE COMPANIES ACT 2013 i.e RESOLUTIONS PASSED IN PURSUANCE OF SECTION 179(3): Nothing contained in this clause shall apply in respect of a resolution passed to grant loans, or give guarantee or provide security in respect of loans under clause (f) of sub-section (3) of section 179 in the ordinary course of its business by any class of non-banking financial company registered under Chapter IIIB of the Reserve Bank of India Act, 1934, as may be prescribed in consultation with the Reserve Bank of India;
  • 5. RULE 3 OF Companies (Filing of Documents and Forms in XBRL) Rules, 2015: Non-banking financial companies, housing finance companies and companies engaged in the business of banking and insurance sector are exempted from filing of financial statements in XBRL format

Frequently Asked Questions

Non-Banking Financial Company” means a Non-Banking Financial Company as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 and includes Housing Finance Companies, Merchant Banking companies, Micro Finance Companies, Mutual Benefit Companies, Venture Capital Fund Companies, Stock Broker or Sub-Broker Companies, Nidhi Companies, Chit Companies, Securitisation and Reconstruction Companies, Mortgage Guarantee Companies, Pension Fund Companies, Asset Management Companies and Core Investment Companies.

Every NBFC that is required to comply with Indian Accounting Standards (INDAS) is required to file Form AOC-4 NBFC (Ind AS) and the consolidated financial statement, if any, with Form AOC-4 CFS NBFC (Ind AS) within 30 days of date of AGM

Section 73 to 78, Section 185, Section 186,section 117 of the Companies Act 2013, RULE 3 of Companies (Filing of Documents and Forms in XBRL) Rules, 2015 specifically provides exemptions to NBFCs.

MCA vide its Notification dated 11th October 2018 inserted Division III to Schedule III which provide instructions for presentation of financial statements of an Non-Banking Financial Company (NBFC) made as per Companies (Indian Accounting Standards) Rules, 2015.

HOW COMPLIANCE CALENDAR LLP CAN HELP YOU?

NBFC must be a Company registered under the Companies Act 2013 so it also has to comply with the provisions of Companies Act 2013 along with RBI Regulations. Companies Act 2013 Compliances such as maintaining Statutory Registers, Minutes, preparing Financial Statements, maintaining books of accounts, filing various forms and returns within due date etc. We at Compliance Calendar LLP has a team of professionals who can provide you proper consultation in complying the provisions of Companies Act 2013 applicable to NBFCs in an efficient and time saving manner. If you are looking NBFC ROC Compliance, you are welcome to connect with us at info@ccoffice.in or call us at +91-9988424211 to book your one-time free consultation and we will be more than happy to help you out.