Can a LLP be registered as a NBFC company? Well, this discussion was carried on a facebook discussion.
Posting the discussion here for your reference:
Can a LLP be registered as NBFC with RBI? If a LLP has large investments (done through own funds, no deposits, no borrowings) and derives its income through dividends/interest, then would be called a NBFC on asset/income criteria? In such case, what is the option for the LLP? RBI would neither give it registration nor would allow it to continue.
Replies to this post:
i) a financial institution which is a company
ii) a non-banking institution which is a company ..........See More
However, requirement of registration u/s 45-IA applies only to NBFCs, i.e. companies and not to LLPs.
Posted 4 years ago by Rahul Rai
No You can not Register LLP as a NDFC as ROC will not allow you to go for that.
if your more than 50% income come from interest then it is necessary to get licence under NBFC.
However interest earned on Bank Fixed Deposit can not included for Interest criteria.
So you May plan accordingly or you may go for the Co op Soc.
CA HARDIK V SHAH
Posted 4 years ago by HARDIK SHAH
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