law: Factoring Regulation Act, 2011 
  Chapter II
  
  Registration of Factors
  3. Registration of
  
  factors.-
  1.     
  
    No
  
  factor shall commence or carry on the factoring business unless it obtains a
  
  certificate of registration from the Reserve Bank to commence or carry on the
  
  factoring business under this Act.
  2.     
  
    Every
  
  factor shall make an application for registration to the Reserve Bank in such
  
  form and manner as it may specify:
  Provided that a
  
  company registered as a non-banking financial company and existing on the
  
  commencement of this Act and engaged in factoring business as its principal
  
  business before such commencement shall make an application for registration as
  
  a factor to the Reserve Bank before the expiry of the period of six months from
  
  such commencement and, notwithstanding anything contained in sub-section (1),
  
  may continue to carry on the factoring business until a certificate of
  
  registration is issued to it or rejection of application for registration is
  
  communicated to it.
  Explanation.- For the
  
  removal of doubts it is hereby clarified that a non-banking financial company
  
  engaged in factoring business shall be treated as engaged in factoring business
  
  as its "principal business" if it fulfills the following conditions,
  
  namely:-
  a.      if its financial
  
  assets in the factoring business are more than fifty per cent of its total
  
  assets or such per cent. as may be stipulated by the Reserve Bank; and
  b.     if its income from
  
  factoring business is more than fifty per cent of the gross income or such per
  
  cent. As may be stipulated by the Reserve Bank.
  1.     
  
  
  2.     
  
  
  3.     
  
    Every
  
  applicant for grant of a certificate of a registration as a factor shall
  
  comply, for the purpose of registration, with all the requirements to be
  
  fulfilled by an applicant for grant of certificate of registration as
  
  non-banking financial company under the Reserve Bank of India Act, 1934 (2 of
  
  1934) and all the provisions of that Act, so far as they relate to the
  
  registration of non-banking financial companies, shall (except those provided
  
  for under this Act) mutatis mutandis apply.
  4.     
  
    In
  
  the case of existing non-banking financial company the Reserve Bank may issue a
  
  fresh certificate of registration as a factor, if the principal business of the
  
  non-banking financial company is the factoring business.
  5.     
  
    Save
  
  as otherwise provided in this Act, every factor including factors not subject
  
  to requirement of registration under section 5, shall be governed by the
  
  Reserve Bank of India Act, 1934 (2 of 1934), the rules and regulations made
  
  there under and the directions or guidelines issued by the Reserve Bank, from
  
  time to time.