Should it be registered as nbfc ?

Ranvijay ji,

As per my view registration is required.

The word "lending in any manner " used in the meaning of NBFC covered your business also.

Hi Mr. Prasad,

I saw somewhere on RBI Website " Financial activity as principal business is when a company's financial assets constitute more than 50 per cent of the total assets and income from financial assets constitute more than 50 per cent of the gross income. A company which fulfils both these criteria will be registered as NBFC by RBI.".

As the company's core revenue is from Sales commission from tied-up merchants, not on Interest on credit facility offered to buyers. Do you think our revenue will constitute more than 50% of our Gross Income.

I would also like to know, being an aggregator (we don't have any assets) how we fall into 50% of financial assets out of 100% total assets.

BTW Thanks for coming forward and helping me.

Ranvijay

Ranvijay Ji,

yes, If your company doesnot fullfill the requirement of "Principal Business" ( 50-50 test) then registration not required i.e. company is doing such lending in a minor scale.

means you have NIL ASSET AND NIL LIABILITIES?

After seeing financial statement we can help you whether revenue and financial asset consitute 50% or not.