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KD   23 January 2017

Do I require nbfc license for commercial Vehcile finance

Hello Members. I have simple querry that I am running a finance company under proprietorship whose capital invested in finance is through my own income, i finance to people who come to me voluntarily. My Hypothecation is endorsed on registeration certificate and for which I have valid and active trade license from regional transport authority. (In short I am private player) Do I need any legal documents as my turnover is below 50 lac, like do I need to form NBFC? Or I can keep on doing Hypothecation/finance business. My rate of interest is 13-20%. Kindly reply. THANKS


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 4 Replies


(Guest)
Originally posted by : KD
Hello Members.

I have simple querry that I am running a finance company under proprietorship whose capital invested in finance is through my own income, i finance to people who come to me voluntarily. My Hypothecation is endorsed on registeration certificate and for which I have valid and active trade license from regional transport authority. (In short I am private player)

Do I need any legal documents as my turnover is below 50 lac, like do I need to form NBFC? Or I can keep on doing Hypothecation/finance business.

My rate of interest is 13-20%.

Kindly reply.

THANKS

Yes you will need validation from NBFC.  Approach them asap.

KD   24 January 2017

Hi, What is the penalty if I don't form NBFC. ?

biswajit   24 January 2017

NOT MEAN PENALTY, MAY BE LEGAL PROBLEM PLEASE TAKE ADVICE  FROM A TAX CONSULTANT . 

KD   24 January 2017

Nope, I am investing my funds sir. Why would I get in legal problem.

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