In India, any company or entity that engages in the business of financial activities as its principal business and is not a bank, is required to register as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI) under the provisions of the RBI Act, 1934. Some examples of financial activities include lending and borrowing of money, investment in securities, providing credit facilities, leasing and hire-purchase, and insurance business, among others. It's important to note that entities that are engaged in agricultural operations, industrial activities, sale or purchase of goods, and providing services other than financial services are not considered as NBFCs and do not require registration with the RBI. Do NBFC need RBI license? Yes, Non-Banking Financial Companies NBFC registration in India are required to obtain a license from the Reserve Bank of India (RBI) to operate. The RBI regulates and supervises NBFCs to ensure their financial stability and consumer protection. To obtain an RBI NBFC license from the RBI, the company needs to meet certain eligibility criteria and comply with the regulatory norms and guidelines issued by the RBI from time to time. The criteria may include minimum net owned funds, track record of performance, fit and proper criteria for directors and senior management, and other regulatory requirements. The RBI may also conduct periodic inspections and assessments of NBFCs to ensure their compliance with regulatory norms and guidelines. Failure to comply with these norms may result in penalties, revocation of the license, or other regulatory actions. What is the limit for registration of NBFC? In India, the minimum net owned fund (NOF) requirement for registration as a Non-Banking Financial Company (NBFC) depends on the type of NBFC. For NBFCs engaged in lending activities, the minimum NOF requirement is:
For NBFCs engaged in asset finance activities such as hire-purchase, leasing, and equipment financing, the minimum NOF requirement is Rs. 2 crore. For NBFCs engaged in providing financial services such as investment in securities, the minimum NOF requirement is Rs. 2 crore. It's important to note that these minimum NOF requirements are subject to change based on regulatory guidelines issued by the Reserve Bank of India (RBI) from time to time. Who regulates NBFC in India? The Reserve Bank of India (RBI) is the primary regulatory body that supervises and regulates Non-Banking Financial Companies (NBFCs) in India. The RBI regulates NBFCs under the provisions of the Reserve Bank of India Act, 1934, and the directions issued under it. The RBI's regulatory framework for NBFCs covers a wide range of aspects such as registration, prudential norms, capital adequacy, liquidity management, asset classification, income recognition, provisioning norms, lending norms, and other operational guidelines. Apart from the RBI, NBFCs may also be regulated by other regulatory bodies such as the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority (IRDAI), and the Ministry of Corporate Affairs (MCA), depending on the nature of their activities and the sector they operate in. Overall, the regulatory framework for NBFCs in India aims to ensure financial stability, consumer protection, and fair competition in the financial sector. NBFC Registration Online - Process, Fees, Documents, Status The process of registering an NBFC in India involves several steps, including the submission of various documents and payment of fees. Here's an overview of the process, fees, documents, and status of NBFC registration in India: Process:
Fees The fees for NBFC registration with the RBI depends on the type of NBFC and the services it plans to offer. The registration fee for an NBFC engaged in lending and investment activities is Rs. 5,000, and for an NBFC accepting public deposits, the registration fee is Rs. 1,00,000. Additional fees may apply for other services. Documents The following documents are typically required for NBFC registration:
Status: Applicants can track the status of their NBFC registration application online through the RBI's online portal for submission of application and documents. The status of the application is updated at different stages of the process, from receipt of the application to final approval or rejection. Read more This Blog :- How to Get NBFC License in India?
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There are several sustainability reporting frameworks available, and the best one for a particular organization will depend on its specific needs and circumstances. Some of the most widely recognized and respected ESG framework include:
How do I know which ESG framework to use? Choosing the right ESG (Environmental, Social and Governance) framework for your organization depends on several factors, including the organization's industry, size, and sustainability priorities, as well as the expectations of its stakeholders. Here are a few things to consider when choosing an ESG framework:
Benefits of esg Reporting There are several benefits of ESG (Environmental, Social, and Governance) reporting for organizations, including:
Read more this blog :- What is ESG investing/reporting and why is it important? Introduction
Seed is the foundation of sustainable agriculture. The growth in the seed industry in India, especially in the last 30 years is very significant. There were three phases to the National Seed Project, Phase I, Phase II, and Phase III. They together contributed to the growth of the Indian Seed Industry. Another milestone was the Introduction of the New Seed Development Policy . The policy got the best seed and planting material from all across the globe to Indian farmers. Indian corporates, private individuals, and MNCs The policy aimed at strong R&D for product development in every seed company, emphasizing high-value hybrids of cereals and vegetables and hi-tech products. This is a list of policy initiatives taken by the government of India In the field of agriculture ,the government has shown some interest for improvement and has taken initiatives for the same. Here is a list of initiatives the government has taken to ensure agricultural productivity:
Why is seed certification needed? There are some primary objectives of seed certification. These are as follows:
What are the eligibility criteria for seed certification? If a seed variety has to become eligible for seed certification it needs to satisfy the following conditions: General Certifications -
Specific Requirements - Presence of off-types in seed crop, shedding tassels in maize crosses, disease-affected plants The step-by-step procedure involved in seed certification
What are the phases of seed certification? It is divided into six broad phases :
Procedure to apply for seed license in person Whenever you decide if I wish to procure the license in person , these is the procedure one needs to adhere to -
Before you initiate the application for a seed license , you must make sure that these documents are arranged by you in order to avoid any havoc at the last moment or in the middle of the process.
(Validity of seed certificate - From the date and time of initial certification, the validity period of the seed certificate shall be 9 months. It can be extended further to 6 months in respect of germination, physical purity, and insect damage of all seeds but not vegetatively propagating material.) Conclusion In this article , we talked about a list of initiatives taken by the government of India to enhance agricultural productivity . This article talks about the procedure , documents and phases of seed certification, seed licence registration . Hope the information in this article is easy to understand and is helpful. For more queries contact corpseed . We shall be glad to help you. Here are some annual compliances for a private limited company: Appointment of First Auditor (Form ADT-1) - Within thirty days of the company's incorporation, the Body of Directors must appoint an auditor. A private limited business is subject to a monthly fine of Rs 300 for failing to appoint an auditor. Additionally, the firm won't be permitted to open. He or she must remain in the office until the conclusion of the first AGM. Subsequent Auditor - An additional auditor is hired to keep an eye on a company's financial status and subsequent dealings. He or she is chosen at the first AGM and stays in that role until the sixth AGM. A subsequent auditor is appointed in accordance with the Companies Act of 2013 by submitting Form ADT-1. Board Meetings - It must hold its first board meeting within a month of its incorporation, or within thirty days. Each fiscal year, there must be four board meetings held. Additionally, it should be noted that no more than 120 days can pass between two consecutive meetings. Each director must get proper notice of upcoming board meetings at least seven days beforehand. Annual General Meeting - One of the most crucial yearly compliances for a private limited company is an annual general meeting, or AGM. The company's Board of Directors is required to disclose the company's genuine financial situation to the shareholders at the AGMs. AGMs must be held each fiscal year on or before September 30th, within regular business hours. The AGM shouldn't take place on a vacation or after hours. Following the issuance of a notice that is at least 21 days long, it must be held at the registered office. Filing of Form MGT-7 Each corporation is required to submit Form MGT-7 within 60 days of the date the annual general meeting was held. It should include the following details:
Filing of Financial Statement (Form AOC-4 ) The company's board of directors and shareholders can communicate with one another through this filing. The form also provides shareholders with information regarding their investments and discloses all financial transactions made during the fiscal year. Additionally, this formality must be completed within 30 days of the annual general meeting. The following ought to be mentioned: Financial statement
Director Disclosure - Form MBP-1 must be filed by all directors of a corporation in order to reveal their ownership stakes in any other corporation. At the first board meeting of each year, this disclosure must be made. Additionally, every director of the firm is required to submit Form DIR-8, Disclosure of Non-Disqualification, to the company each financial year. Additionally, in the event of the appointment of a new director, the new director's credentials are to be regarded as a declaration. DIR-3 KYC of Directors - According to the Companies Rules, 2014, directors who have a DIN (Director Identification Number) and are in active status must submit a DIR-3 KYC form each year. The MCA portal will display an inactive DIN status if DIR-3 KYC is not filed. Please be aware that if DIR-3 is deactivated, no Form of Annual Compliances for Private Limited Companies may be submitted. Form DIR-8 - Form DIR-8 format for director notification of disqualification or non-disqualification as well as notification of companies where he served as a director in the previous three years In accordance with Companies (Appointment and Qualification of Directors) Rules, 2014 Section 164(2) and Rule 14(1). Commencement of Business Certificate - Every company must receive the commencement of business certificate within 180 days of the business' establishment. A corporation faces a fine of Rs 50,000 and a daily director fine of Rs 10,000 if it fails to obtain this certificate. Other Non-RoC Compliances Some non-RoC compliances are also required for private limited corporations, in addition to the statutory compliance filings stated above, are:
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