ASSET RECONSTRUCTION COMPANY REGISTRATION

The registration of an Asset Reconstruction Company is a required procedure under the SARFAESI Act, 2002, for firms aiming to handle and address non-performing assets (NPAs). At JR Compliance one of India’s best compliance services online, we ensure smooth, reliable, and quick registration while adhering to legal norms and minimizing complexities.

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Service Overview

When it comes to acquiring, handling, and restructuring distressed assets, it is the Asset Reconstruction Companies (ARCs) that do all work on the ground, very much critical in the financial ecosystem. Standing tall on the shoulders of vast expertise, JR Compliance makes sure that your ARC registration follows all regulatory guidelines, paving the way for a smooth and compliant operation with Reserve Bank of India (RBI) mandates.

‍Challenges of Filing for a Private Limited Company

Complex Procedures

The formation of the private limited company is quite complex as it requires many legal formalities.

Time-Consuming

Sometimes, its exhausting to gather all the necessary papers and fill out all necessary documents.

Share Limit

In a Private Limited Company there is a limit of 200 shareholders, with a restricted limit on share transfers.

Business Commencement

Within 180 days of registering a Private Limited Company, the certificate of commencement of business must be obtained.

‍Challenges of Asset Reconstruction Company Registration

Stringent Compliance With RBI Regulations

Meeting RBI guidelines is challenging due to multiple legal formalities and detailed documentation. Non-compliance can lead to delays or application rejection, causing financial and operational hurdles for businesses aiming to register as an ARC.

Complex Documentation and Approvals

Documentation for ARC registration includes drafting a resolution plan, financial statements, and legal proofs. Any errors or missing details may prolong the approval process, hindering the company's registration timeline and workflow.

High Net-Owned Fund (NOF) Requirement

The requirement of maintaining a minimum NOF of Rs. 100 crores adds financial pressure, making it difficult for smaller entities to meet this eligibility. Proper financial planning becomes essential to proceed.

Operational and Legal Expertise Needed

Registering as an ARC requires expertise in both legal and operational frameworks. Companies without the right guidance face difficulties in creating compliant frameworks, delaying the registration process.

Advantages of Copyright Registration

Simplified Regulatory Compliance

JR Compliance makes it easy to meet RBI norms, simplifying the process for a smooth experience free from regulatory hurdles or rejections.

End-to-End Documentation Assistance

We take care of all essential paperwork, from drafting to filing, ensuring everything is accurate and complete for quick registration without any unnecessary hold-ups.

Time-Efficient Solutions

Our streamlined approach guarantees quicker registration by reducing turnaround times, helping your business commence ARC operations at the earliest.

Professional Guidance Throughout

From consultation to approval, our experts guide you through every step, ensuring a smooth and successful ARC registration process tailored to your needs.

Service Process

01

Pre-Eligibility Review

We conduct a detailed assessment of your business model and financials to confirm eligibility for ARC registration.

02

Document Preparation

Our experts prepare all necessary documents, including application forms, financial statements, and legal records, ensuring error-free submissions.

03

Net-Owned Fund Validation

We assist in verifying and documenting the Rs. 100 crore NOF requirement to meet RBI eligibility standards seamlessly.

04

Fit and Proper Criteria Support

We ensure that the directors and promoters meet RBI’s ‘fit and proper’ criteria through background verification and declarations.

05

Application Filing

Once documents are finalized, we submit your ARC registration application to the RBI while ensuring compliance with all legal provisions.

06

Registration Approval

We deliver your ARC registration certificate upon successful approval, ensuring you can start operations without delay.

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Service Process

Consultation

We will have a consultation regarding your business vision and requirements to decide on whether the private limited company fits you well.

Documentation

We will help you to do the paperwork involving preparation of the Memorandum of Association and Articles of Association.

Registration

We will then forward all the necessary documents to the Registrar of Companies as required for registration.

Support

We will always be here with you to offer assistance and advice so that you can efficiently run your private limited company.

Compliance:

We will assist you in maintaining a continuing compliance with all legal and regulatory standards.

Service Process

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Service Breakdown

Eligibility

Company registration: To qualify for ARC registration, the applicants must be registered under the Companies Act, 2013.

Minimum Net- Owned Fund (NOF): In order to qualify for the registration companies are required to have a minimum net- owned fund (NOF) of Rs. 300 crores to show the soundness of their financial condition and meet the criteria.

Approval from RBI: Companies will need to secure approval from the Reserve Bank of India to operate as an Asset Reconstruction Company (ARC) in India.

Financial Credibility of the Promoters: Clean records must be kept by promoters, directors and shareholders, as far as any financial irregularities/defaults are concerned.

Documents

Certificate of Incorporation: Confirms legal registration under the Companies Act for asset reconstruction services.

Minimum Capital Requirement Proof: Demonstrates ₹100 crore capital infusion, as mandated by RBI guidelines.

Directors' and Shareholders’ KYC: Aadhaar, PAN, and financial background verification for compliance.

Business Plan and Operational Strategy: The complete business plan and operational strategy should include all important information about the business operations of ARC, methods of asset recovery, and financial forecasts.

Who Needs

Financial Institutions Managing NPAs: Banks and financial institutions dealing with non-performing assets require an ARC to recover outstanding dues effectively.

Investors in distressed assets: Companies or investors aiming to purchase and restructure distressed assets benefit significantly from ARC registration.

Businesses in Asset Recovery: Organizations specializing in recovering or managing bad debts need ARC registration to operate legally and gain trust.

Companies Seeking Structured Recovery: Firms looking for systematic solutions to manage and recover financial losses need an ARC license for compliance and efficiency.

Creating Trust-Driven Relationships

JR Compliance is one of the known name for BIS certification, they are well versed with processes
and guide client properly.

Kartik Shah

Published on 4 March 2024

We have outsourced the entire BIS certification responsibility of our panels to JR compliance since 2017 and their service so far has been
exemplary.

K Narayanan

Published on 4 March 2024

We have been using JR Compliance services since last 3 years on various BIS related registration & testing of our various IT & electronic products. We really appreciate your full-fledged & excellent support in all respect in this matter.

P N Dhawanjewar

Published on 4 March 2024

FAQ

Services

What is an Asset Reconstruction Company (ARC)?

Asset Reconstruction Company (ARC) is a financial entity that purchases non-performing assets from banks and non-banking financial companies (NBFCs), then restructures these assets, and works towards recovering the outstanding dues.

What is the minimum NOF requirement for ARC registration?

As per RBI regulations, the minimum Net-Owned Fund requirement for ARC registration is Rs. 100 crores.

How much time does it take for ARC registration?

It generally takes about 4-6 weeks for registering with ARC, subject to the correctness of documents as well as the approvals from Concerned Authorities.

What documents are required for ARC registration?

Documents such as financial statements, business plans, application forms, and NOF confirmations are required for successful ARC registration.

How can JR Compliance assist in ARC registration?

JR Compliance provides comprehensive assistance, from documentation to approvals, ensuring a smooth and timely ARC registration process for your business.