Dear All,
I want to incorporate one Construction and other Equipment renting company. Will it be treated as 'Equipment Leasing Company' and consequently NBFC?
Regards'
CS Pooja
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 15 September 2010
The NBFCs that are registered with RBI are:
With effect from December 6, 2006 the above NBFCs registered with RBI have been reclassified as
AFC would be defined as any company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive / economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines.
Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.
CS Pooja
(Company Secretary)
(305 Points)
Replied 15 September 2010
Do you mean my company will qualify as NBFC?
Shraddha Shukla
(Corporate law Consultant)
(346 Points)
Replied 15 September 2010
Yes it does.
other views are solicited
CS Pooja
(Company Secretary)
(305 Points)
Replied 15 September 2010
but my company is not going to finace the renting.it will only give the machinery manufactured by group company on rent.Still it will be NBFC?
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