#HousingFinanceCompanyRegistration #HousingFinanceCompanies #Corpbiz
Housing Finance Companies are those types of companies who have the main object of carrying business of providing finance for housing whether directly or indirectly. They are regulated by the National Housing Bank (#NHB), a government body.
As per section 29A of the #NationalHousingBankAct, 1987 it is compulsory for every proposed housing finance company to procure a certificate of registration from NHB before initiating activities related to housing finance.
What are the documents required for Housing Finance Company registration in #India?
• Certified Copy of #MOA (Memorandum of Association) & #AOA (Article of Association);
• Demand Draft
• Board Resolution specifying the objective of the #Company and authorization to file Application before #RBI
• Certificate by professional regarding the meeting the criteria of minimum NOF (Net Owned Fund) of Rs. 20 crores;
• Business Plan of the company for the next 3 years;
• Company profile;
• Business profile of MD/Directors/CEO etc;
• Audited Financials for the last three years, if available;
• Education and experience certificate of directors and employees;
• Certificate by professional regarding the source of the capital of the company;
• Details of the company in which promoters/ directors, associated;
Process of Housing Finance Company registration?
• For Housing Finance Company Registration, an applicant company has to submit a physical copy of the application (in duplicate) along with the necessary documents which are mentioned above to the Head Office of the Reserve bank of India along with the Demand Draft.
• Once a registration application is submitted, RBI will review the application and grant a Certificate of Registration after proper background verification.
What are the post-incorporation formalities for #HousingFinanceCompany?
Once a certificate of registration is obtained, housing finance companies need to complete the following post incorporation formalities for smooth functioning
• Development of loan processes
• Development of loan policies, including appraisal techniques & tools
• Development of IT Infrastructure
• Board Structure
• Organizational Structure and Drafting of Policies
• Product Development
• Legal Operations
• NHB regulatory and compliance requirements
• Resource Mobilization
• Credit Risk Management
• Scoring Model
• MIS format
Mandatory Compliances for Housing Finance Companies towards NHB
• It is required for each HFC to file a yearly return, half yearly return and quarterly return in regard of prudential standards, maintain liquid assets respectively
• Yearly submission of the auditor’s certificate, affirming the capacity of the HFC to repay deposits
• A copy of the budget report and yearly report
• Filing a copy of the advertisement soliciting public deposits
Conditions pertaining to the grant of Housing Finance Company #license by NHB?
• The Business Affairs of the Housing Finance Company are not being or are not likely to be conducted in a manner adverse to the interest of its present or future depositors.
• The operations and policy of the company should not be against the public interest or against the interest of the depositors.
• HFC has sufficient capital structure and better earnings prospects
• Once the certificate of registration is granted to the HFC to commence or carry on the #business in India.
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15 сен 2024
