Wikiprocedure

Ladakh - Apply for Factoring License

Page Discussion

Advertisement

ProcedureEdit

Apply Online

  1. To Apply for Factoring License, the applicant has to make the application online via the following link link
  2. The applicant must click “Apply for COR” and enter Unique ID and password and captcha code and click “submit.”
  3. If the applicant is a new user then click “New User? Register now” and register an account.
  4. After login select NBFC – Factor and start filling the application.
  5. The applicant must fill in all the necessary details in the application form. (Incomplete applications are not accepted)
  6. Upload all the necessary documents that are mentioned in the “Required Documents” section of this page.
  7. Review and submit the application.
  8. After this, an applicant will get a reference number (CARN) to facilitate inquiry in the future.
  9. The applicant must submit the duplicate hard copies to the concerned regional office of RBI.
  10. The regional officer will instruct about the fee details of the application.
  11. All applications are processed within a reasonable time, having regard to the circumstances of each application, including the completeness of information and documents submitted to the authority by the applicant.
  12. The authority may seek additional information from an applicant if this is necessary to assess the application. The authority does not need to deal further with an application until the applicant has provided this additional information.
  13. Once regional office finds that you've provided the correct application, they start scrutinizing the application. The regional office will send the application to the central office.
  14. The central office of RBI grants NBFC registration only when applicant company fulfils prescribed requirements under section 45-IA.
  15. NBFC must commence its business within 6 months from the date of Certificate of Registration
  16. This entire process can be completed within 6 months or as per the timeline advised by the respective department authority.



Apply In-Person:

  1. To Apply for Factoring License, the applicant must approach the RBI’s regional office in their respective state link

Note: The applicant has to click on “Contact Us-Regional Offices” and click on their respective state to find offices.

  1. An application form will be provided to the applicant by the concerned officer. Or the applicant must download the application form from the following link – link
  2. The applicant must fill in all the necessary details in the application form. (Incomplete applications are not accepted)
  3. Make sure that the applicant has attached all the necessary documents that are mentioned in the “Required Documents” section of this page.
  4. The applicant must attach the photocopies of the required documents along with the application form while submitting.
  5. Submit all the documents with the completed form to the concerned officer.
  6. After receiving the application, the concerned authority will check the submitted application and document set. If all are in place, the application will be accepted.
  7. The regional officer will instruct about the fee details of the application.
  8. All applications are processed within a reasonable time, having regard to the circumstances of each application, including the completeness of information and documents submitted to the authority by the applicant.
  9. The authority may seek additional information from an applicant if this is necessary to assess the application. The authority does not need to deal further with an application until the applicant has provided this additional information.
  10. Once regional office finds that you've provided the correct application, they start scrutinizing the application. The regional office will send the application to the central office.
  11. The central office of RBI grants NBFC registration only when applicant company fulfils prescribed requirements under section 45-IA.
  12. NBFC must commence its business within 6 months from the date of Certificate of Registration
  13. This entire process can be completed within 6 months or as per the timeline advised by the respective department authority.


Advertisement

Required DocumentsEdit

  • Completed application form link
  • Certified copies of the Certificate of Incorporation and Certificate of Commencement of Business (in case of public limited companies).
  • Certified copies of the Memorandum and Articles of Association of the company.
  • Details of the clauses in the memorandum relating to financial business.
  • Copy of PAN/CIN allotted to the company.
  • Statutory auditor's certificate stating that the company does not hold public deposit and does not accept it as well.
  • Certificate specifying owned funds as on the date of an application from the Statutory Auditor.
  • Information regarding the bank account, loans, balances, credits, etc.
  • Board resolution on 'Fair Practices Code'.
  • Business plan for the factoring business.
  • Details of the management team.
  • A copy of the factoring agreement.


Use the following link to know more about required Documents link


Office Locations & ContactsEdit

RESERVE BANK OF INDIA (RBI)


Department of Regulation
2nd Floor, Main Office Building
Shahid Bhagat Singh Marg, Fort
Mumbai-400 001
Phone: 22701203
Fax: 22701226
Email: [email protected]
Contact Details – link
Regional Offices – link
Note: The applicant has to click on “Contact us-Regional Offices” and click on their respective state to find offices.

EligibilityEdit

the eligibility requirements for applying for a factoring license in India are as follows:

  • The company must be registered as an NBFC-Factor with the Reserve Bank of India (RBI).
  • The company must have a minimum net owned fund (NOF) of Rs. 5 crores.
  • The company must have a minimum paid-up capital of Rs. 25 lakhs.
  • The company must have a board of directors with at least one director who has a minimum of three years of experience in the financial services industry.
  • The company must have a sound financial system and adequate risk management practices.
  • The company must comply with all applicable laws and regulations.


In addition to the above, the company must also meet the following specific requirements for factoring:

  • The company must have a business plan for the factoring business.
  • The company must have a team of experienced professionals with a good understanding of the factoring business.
  • The company must have a sound risk management system in place.
  • The company must have a good track record of compliance with all applicable laws and regulations.


FeesEdit

  • The cost of obtaining a factoring license is Rs. 3,50,000 as a government fee.


ValidityEdit

  • The factoring license is valid for a period of five years and can be renewed for a further period of five years.


Documents to UseEdit

  • Application form – link


Sample DocumentsEdit

Please attach sample completed documents that would help other people.


Processing TimeEdit

  • This entire process can be completed within 6 months or as per the timeline advised by the respective department authority.



Related VideosEdit

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.


InstructionsEdit

  • Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
  • Applicants must provide genuine information while applying for this procedure.
  • Application should be made in the prescribed form only. Wherever space is insufficient, information may be furnished in separate sheet/s.
  • Application along with enclosures duly completed should be duly filed, page numbered and submitted.
  • A photocopy of the application as submitted may be kept with the company for its record.
  • Application should be signed by any of the following officials authorised by the Board of Directors, in this behalf (viz., Chairman, Managing Director, Chief Executive Officer, Company Secretary, a whole-time Director or any other official).
  • Application should bear common seal of the company and certified by the Statutory Auditors


Required InformationEdit

  • Name of the company
  • CIN of the company
  • PAN of the company
  • Date of incorporation
  • Complete registered address of the company (Including Phone Number, Fax Number, Email)
  • Address of the corporate office
  • If the applicant is any other entity, name, nationality, and address of each of its directors/managers/principal officers
  • Main business of the applicant company /firm / other entity
  • Names and addresses of subsidiary companies/ associated firms / other associated entities
  • Management information, if applicant is a company / firm / any other entity
  • Name of Chief Executive
  • Age, Nationality, Qualifications and Experience of Chief Executive
  • Shares held by the Chief Executive and Directors in the applicant company
  • Name of the statutory auditors and their business address
  • Net worth
  • Paid up capital


Need for the DocumentEdit

  • A factoring license is a permit granted by the Reserve Bank of India (RBI) to a non-banking financial company (NBFC) to engage in the factoring business. Factoring is a financial service in which a company sells its accounts receivable (invoices) to a third party (factor) at a discount. The factor then collects the payments from the debtors on behalf of the company.


Information which might helpEdit

  • The purpose of a factoring license in India is to regulate the factoring business and protect the interests of both the factors and the businesses that sell their receivables to them. The Factoring Regulation Act, 2011 and the RBI Non-Banking Financial Company – Factors (Reserve Bank) Directions, 2012 govern the factoring business in India.
  • The factoring license ensures that factors have the necessary financial strength and experience to operate in this business. It also ensures that factors comply with all applicable laws and regulations. The factoring license also provides a framework for resolving disputes between factors and businesses.


Other uses of the Document/CertificateEdit

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.


External LinksEdit

FAQs about NBFC – Factor – link


OthersEdit

The following are the benefits of obtaining a factoring license:

  • It allows the NBFC to engage in the factoring business, which is a profitable and growing financial services industry.
  • It gives the NBFC the credibility and legitimacy that is required to attract customers and investors.
  • It provides the NBFC with access to the RBI's regulatory framework, which helps to mitigate risks and ensure compliance with laws and regulations.


Retrieved from "https://www.wikiprocedure.com/index.php?title=Ladakh_-_Apply_for_Factoring_License&oldid=19356"