Should it be registered as nbfc ?
Ranvijay (Executive) (23 Points)
11 December 2016Ranvijay (Executive) (23 Points)
11 December 2016
Kumud prasad
(Practicing CS)
(216 Points)
Replied 11 December 2016
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.
Ranvijay
(Executive)
(23 Points)
Replied 11 December 2016
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
Kumud prasad
(Practicing CS)
(216 Points)
Replied 12 December 2016
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.
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