KRA Registration: KYC Registration Agency Licence
A KYC Registration Agency (KRA) stores and shares investors’ KYC records across the securities market. Under SEBI’s 2011 Regulations only certain subsidiaries can apply, with a net worth of at least ₹25 crore. KRA registration costs ₹50,000 to apply and ₹1,00,000 to register.
What it is
A KYC Registration Agency is a SEBI-registered entity that holds the KYC records of investors in a central place, so that an investor who completes KYC with one intermediary does not repeat it with another. Brokers, depository participants and mutual funds upload KYC data to a KRA and use it when onboarding. A Faridabad sub-broker who opens a new demat account today depends on exactly this chain.
The governing law is the SEBI (KYC (Know Your Client) Registration Agency) Regulations, 2011. The KRA keeps documents in physical and electronic form, ensures interoperability with other KRAs, protects the data and answers to SEBI through periodic audits.
Who it applies to
A subsidiary of a stock exchange
The Regulations let a wholly owned subsidiary of a recognised stock exchange with a nation-wide network of trading terminals apply.
A subsidiary of a depository or another SEBI intermediary
A wholly owned subsidiary of a depository or another registered intermediary can apply. There must be no conflict of interest with the parent’s other business.
A subsidiary of an SRO
A wholly owned subsidiary of a self-regulatory organisation registered with SEBI also qualifies.
Why it matters
Run the KYC backbone
A KRA sits at the centre of onboarding for the whole market, so it is infrastructure with steady volume.
Clear regulatory standing
Registration under the 2011 Regulations gives you the legal status to take in, store and share KYC records.
Permanent registration is possible
After the initial five-year certificate, a KRA can seek permanent registration, valid until it is suspended or cancelled.
KRA fees and registration terms
| Item | Amount or term |
|---|---|
| Application fee (non-refundable) | ₹50,000 |
| Registration fee | ₹1,00,000 |
| Annual fee | ₹1,00,000 |
| Net worth, on a continuous basis | At least ₹25 crore |
| Initial registration | 5 years, then permanent registration can be sought |
A KRA is a business for institutions with the right parent and balance sheet. If you only need to complete KYC for your clients, you use an existing KRA and need no licence.
Documents required
About the applicant
- Incorporation documents of the subsidiary
- Proof that it is wholly owned by an eligible parent
- Audited financials and CA certificate of net worth of at least ₹25 crore
- Declaration on conflicts of interest
About the parent and people
- Parent’s registration or recognition details
- Fit-and-proper declarations of directors and key management
- Compliance officer appointment
- Organisation chart and staffing plan
About the systems
- Technology architecture for KYC storage and transmission
- Interoperability plan with other KRAs
- Data security, backup and audit arrangements
- Operating procedures and grievance policy
How it works
Confirm eligibility
We check that your parent qualifies as an exchange, depository, SEBI-registered intermediary or SRO, and that a subsidiary structure is workable. Some applicants find at this point that using an existing KRA is enough.
Form the subsidiary
We incorporate the wholly owned subsidiary as a private limited company or the structure your parent prefers, with the right objects.
Get net worth and documents ready
We coordinate a CA certificate, compile the people and systems documents, and draft the operating procedures against Regulation 15 functions.
Apply to SEBI and answer queries
We prepare and file the application and respond to SEBI’s queries. Here is the catch: reviewers focus on data security and interoperability, so we finalise those sections first.
Set up operations and compliance
After registration, we help set up the compliance calendar, annual fee payments and audit arrangements.
Timelines
Initial registration: 5 years
The first certificate runs for five years from the date of issue.
Permanent registration
A KRA can apply for permanent registration in the last months before the initial certificate expires.
Annual fee each year
The annual fee of ₹1,00,000 falls due each year while the registration is in force.
What happens if you do not comply
Net worth falls below ₹25 crore
The net worth must be maintained continuously. A shortfall can lead to action by SEBI.
Fees go unpaid
Defaulting on fees is a ground for action against a KRA under the 2011 Regulations.
Duties are not followed
Failing to give information, cooperate with inspections or follow SEBI directions can lead to suspension or cancellation of registration.
Frequently asked questions
What is a KYC Registration Agency?
A KYC Registration Agency is an entity registered with SEBI to store investors’ KYC records and share them with registered intermediaries. An investor who completes KYC once can use it across brokers, depositories and mutual funds. The 2011 Regulations govern it. We help eligible applicants prepare for registration.
Who can apply for KRA registration?
Only a wholly owned subsidiary of a recognised stock exchange with a nation-wide network of trading terminals, of a depository or another SEBI-registered intermediary, or of a SEBI-registered self-regulatory organisation. There must be no conflict of interest with its other business. We check your parent and structure before any filing.
What net worth does a KRA need?
At least ₹25 crore, maintained on a continuous basis. This is a core condition of the SEBI 2011 Regulations, so the capital must be in place and supported by a CA certificate before you apply. We help you plan and document the net worth.
What are the SEBI fees for a KRA?
Schedule II of the 2011 Regulations sets a non-refundable application fee of ₹50,000, a registration fee of ₹1,00,000 and an annual fee of ₹1,00,000. These are government fees and are quoted separately from ours. We confirm the payment method at the time of filing.
How long is a KRA registration valid?
The initial registration is valid for five years from the date of issue. A KRA can then apply for permanent registration, which stays valid until suspended or cancelled. The application comes towards the end of the initial period. We track the date and prepare it in time.
What does a KRA have to do after registration?
Under Regulation 15, a KRA must maintain interoperability with other KRAs, keep secure data links, store KYC documents in physical and electronic form, keep data safe with backups, appoint a compliance officer for grievances and get periodic audits. We help build these into your operating procedures.
Do I need KRA registration just to onboard clients?
No. Brokers, depository participants and mutual funds do not need to be KRAs. They upload and fetch KYC records through an existing KRA. Only an entity that wants to run the KYC registry itself needs registration. If you only need KYC compliance for your clients, we can guide you on that separately.
How does Taxhint help with KRA registration?
We check eligibility, form the subsidiary, coordinate the net worth certificate, prepare the documents and procedures, file with SEBI and answer queries. Where the work needs a practising CA or lawyer to sign, a qualified professional does it. We stay with you after registration for compliance.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The SEBI fees are ₹50,000 as a non-refundable application fee, ₹1,00,000 as the registration fee and ₹1,00,000 as the annual fee. The net worth of ₹25 crore is a capital condition, not a fee.
Ready to begin?
Tell us who your parent entity is, and we will tell you whether the KRA route works and what to prepare.