The company registered under the Companies Act, 2013 whose principal business is Financial activity such as chit fund business, insurance business, loans and advances, acquisition of shares or other types of securities, leasing, etc. is a Non-Banking Financial Company (NBFC).

A Non-Banking Financial Company (NBFC) is a financial institution that works like a bank but does not have a banking license offering financial products and services to customers.

Companies need funds to fulfill their daily obligations to run their business efficiently, some of the basic funding requirements are: Fulfill everyday operational requirements and support business needs; For business expansion,  Increasing the standards of business, Coping with rising competition in the financial market, Developing better products and services to meet the customer’s needs etc.

Any Advocate defined under the Advocates Act 1961 is entitled to practice law as per the Bar Council of India.

This article focuses on providing the variance between NBFC and Fintech companies.

This article is designed to help gain information regarding mandatory compliances for obtaining CoR from RBI by the company desirous to step into the financial business.

The computation of the "Net Owned Fund" can be done as:  (a) Aggregate the paid-up equity capital and free reserves as per the latest balance sheet of the company after deducting therefrom the accumulated balance of loss; deferred revenue expenditure; and other intangible assets; and (b) Deduct the following – Investments of such companies in shares of its subsidiaries; companies in the same group; all other non-banking financial companies; and Book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to, and deposits with, subsidiaries of such company; and companies in the same group,to the extent, such amount is more than 10% of (a) above.

The broad categorization of NBFCs are: Asset Finance Company (AFC)  Investment Company (IC) Loan Company (LC) Infrastructure Finance Company (IFC) Systemically Important Core Investment Company (CIC-ND-SI) Infrastructure Debt Fund (IDF-NBFC) Micro Finance Institution (NBFC-MFI) Non-Banking Financial Company – Factors (NBFC-Factors) Mortgage Guarantee Companies (MGC) Non-Operative Financial Holding Company (NOFHC) Various Returns and Intimations to be filed by NBFCs: NBS-1 Return: To be submitted by deposit-taking NBFCs on a quarterly basis to report financial details.

NBFC is incorporated under the Companies Act and its activities are governed by RBI.

Section 10 of the Patents Act, 1970, provides the details to be mentioned in the application for patent.

As per the Patent Act, 1970, the provisional patent application shall include the description of the invention, drawings if directed by the Controller.

Section 10 of the Patents Act, 1970 provides that the complete specification must end with a claim/(s) stating the scope of the invention for which application is filed by the applicant.

An inventor who has filed an application in India and wants to get the patent in other countries as well can file a corresponding application for the same invention in conventional countries or under PCT.

They further recommends risk aversion measures and guide the company in improving the risk management system.

Introduction Section 204(1) of the Companies Act of 2013 mandates secretarial audits of all listed entities and companies in other defined classes.

  As per Section 204 (1) of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, Secretarial Audit is applicable to every company that is: • A listed company  • A public company having paid-up share capital of Rs. 50 crore or more. • A public company having a turnover of Rs. 250 crore or more.

Concept of FSSAI Registration/License: Before initiating the business of manufacturing, distributing and transporting, and other food-related activities, the business operators need to get themselves registered with the FSSAI, in accordance with the law through an online compliance portal which is "FoSCos (Food Safety Compliance System)” After making an application with FSSAI, the food operators are issued with a 14-digit License number, which acts as an authentication certificate for the food articles provided by the FBOs.

The guidelines for obtaining CoR include, the applicant company must be registered under the Companies Act, 2013, the company shall maintain minimum NoF amount as specified by the bank for different categories of NBFC, and fulfill the 50-50 criteria of assets and income.

When investment is done in an Indian company by an entity/a person based outside India is termed as Foreign direct investment (FDI).

The company deals in nutritional products which also include personal care products.

Details and Differences of AGMARK AND FSSAI AGMARK: AGMARK is recognized as per the Agricultural Produce (Grading and Marking) Act of 1937 (amended in 1986).

The procedure of surrender and revocation of the patent is regulated under the provision of Sec. 63 of the Patent Act 1960.

The filing of the conventional patent application follows the provisions under section 135 of the Patent Act 1970.

The Indian Patent Act 1970 has complied with article 30 of the TRIPS agreement to confer exceptions that do not unfairly prejudice the interests of the patent owner or another person having a valid interest in it: Exception One: Exception for private and non-commercial use of patent Generally, the patent is not allowed for private use or has a monopoly over the relevant commercial activities.

Trade secrets include methods, processes, or any other company information that determines the monetary value of the business that a company is making a generous effort to keep secret.

Furthermore, in companies, investments can also be withdrawn through buyback of shares and or by way of reduction capital which again becomes a time-consuming process, and therefore the trend to invest in Limited Liability partnerships is increasing every day.

The Limited Liability Partnership is governed by the laws drafted under the Limited Liability Partnership Act, 2008.

Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 (“FEMBLFER”) states provisions regarding how an Indian person or a Company can do borrowing in foreign exchange.

As a company is a separate legal entity, it is also an artificial person and therefore requires an individual who can look after it.

Brand value is an intangible asset that companies are ready to spend millions on brand.

Statutory means mandatory; therefore, statutory audit signifies a necessary formality of the Companies Act 2013.

An independent service for evaluating the internal management of a company is known as an internal audit.

A company registered under the Companies Act, dealing in the following business activities: Loans and advances,  Purchasing shares/stocks/bonds/debentures/securities issued by the government or local authority or other marketable securities of a like nature,  Leasing,  Hire purchase,  Insurance business,  Chit business  An institution (non-banking) having principal business activity of receiving deposits under any scheme or arrangement in one lump sum or installment by way of contributions or in any other manner.

Only those registered with NBFC under the Companies Act are eligible to acquire control of another NBFC.

  NBFCs are companies registered under the Companies Act of 1956 or 2013.

  NBFCs are companies registered under the Companies Act of 1956 or 2013.

Moreover, the documents can be uploaded at any time, so there is no requirement to assign a person and make an appointment to send the files and hand them over to the auditor.

A Non-Banking Financial Company (NBFC) is a company that is involved in a financial business of providing loans and advances, acquiring stocks or shares, depositing money, lease, insurance, hire-purchases, chit funds, and similar companies.

Primarily there are three approaches for the business valuation: Market-Based Approach: Under a market-based approach, it is necessary to identify a firm under the same industry with whom the concerned company is compared based on the suitable multiples: The earnings of the company post-tax deduction are multiplied to calculate an estimation of the value of equity.

In layman’s language, any non-banking institution which is a duly registered company under the relevant act has its principal business similar to that of a bank.

Particulars of food products to be dealt with Food Safety Management System Plan For State License: Details (with name, ID, complete address, and contact) for: Directors or  Partners or Proprietor or Members of Society or  Trust Authorised Signatory List of: Machinery/equipment (their registration number, working capacity, and power usage) Food to be manufactured Certificate by Cooperatives (Coop – 1861/Multi-State Coop Act – 2002) Declaration/Undertaking by Food operators Form B (attested by the Proprietor/Partner/Authorized member) Authority letter by the manufacturer nominating the person (along with details of the alternative person) Self-Declaration (for Proprietorships) Copy of License from manufacturer NOC from manufacturer NOC from Municipality or local body Food Safety Management System Plan Form IX: Details of persons nominated by the Company and copy of Board Resolution Analysis report of water portability to be used in food.

All companies must make certain disclosures to them in the Application Form issued by the company soliciting deposits.

Loan Company: A company involved in providing finance by lending loans or advances for any activity other than its own.

The business valuation report is a document recording the analysis to estimate the value of a company or its assets or group of assets based on the performance in the market, industry and economic growth.

State FSSAI Registration Rent Agreement for Business Premises ID Proof of the Concerned Person (Aadhaar Card / Driver's License / Passport / Voter ID) Government Registration Certificates (Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License), if any.

The activities relevant to patent application is regulated by the Patents Act 1970 that was implemented in 1972 replacing the Indian Patents and Designs Act 1911.

Except in a few situations, a verbal valuation report is not called for, only for certain internal discussions where the valuation of the company requires to be referred to informally.

Infrastructure Finance Company (NBFC-IFC)- Provide for infrastructure loans.

In cases of companies /partnership firms, various audited statements will be required, such as cash flows, profit/loss account, balance sheet, etc.

As per the Indian law, trusts are registered under the Trust Act, 1882.