NBFC Registration your trusted growth partner for Non-Banking financial companies (NBFCs).
NBFC Registration your trusted growth partner for Non-Banking financial companies (NBFCs).
A Housing Finance Company (HFC) is a type of Non-Banking Financial Company (NBFC) engaged in housing construction and financing the acquisition and improvement of plots and homes. It is mandatory for an HFC to have housing finance as its primary objective in the Memorandum of Association (MOA). The National Housing Bank (NHB), the apex financial institution for housing finance, holds the sole authority to grant HFC registration.
Every HFC must obtain a Certificate of Registration (COR) from NHB to begin operations, with non-compliance leading to hefty penalties as per the National Housing Bank Act, 1987. NHB classifies HFCs based on liabilities into deposit and non-deposit accepting companies. As the Indian housing finance sector evolves into its second phase of growth, NHB plays a key role in ensuring the credibility and stability of this sector by integrating with capital and debt markets through responsive regulations.
● The business entity that wants to operate as a Housing Finance Company must acquire registration as the NBFC from RBI.
● Minimum Net owned fund of Rs 20 Crores.
● Must be registered under the Companies Act 2013
● Must satisfy the requirements of a private limited company under the provisions of the Companies Act 2013 or the Companies Act 1956.
● Housing Finance Activities as Object Clause
● Need to work in the interests of the public.
● A House Finance Company must have a sufficient capital structure
● Copy of the Article of Association (AOA) and Memorandum of Association (MOA) of the said company;
● Details about the Company’s profile;
● Demand Draft of Rs 10,000/- for National Housing Bank
● Furnish a Board Resolution (BR) mentioning that the Company’s aim and approval to record registration application before the NHB
● Comprehensive Business Plan stating the next three years goals and objectives of the Company;
● Acquiesce a certificate issued by any professional stating that the said company has duly met the conditions of minimum NOF
● Business profile of CEO (Chief Executive Officer) or Directors or MD (Managing Director), etc.;
● Details of all the companies to which the directors are related;
● Financial Audit of the last three years;
● HFC Should file its annual return, half yearly return, and quarterly return in regard of prudential norms, maintenance of the liquid assets correspondingly
● Annual submission of the Certificate given by the Auditor, certifying Company’s capability to repay deposits
● A copy of the audited financial statements;
● A copy of the audited annual report;
● Timely filing of return in respect of the change of the registered office
● Timely filing of return in respect of the change in directors etc.
● Furnishing a copy of the advertisement soliciting regarding public deposits or a statement in lieu thereof
● Housing Finance Companies have to comply with the all the provisions relating to IND-AS
