Overview
A Non-Banking Financial Company (NBFC) is a financial institution registered under the Companies Act, 2013 that offers banking-related services without holding a banking license. NBFCs are regulated by the Reserve Bank of India (RBI) and play a critical role in providing loans, advances, investments, and other financial products to individuals and businesses. They are especially popular in sectors like microfinance, asset financing, and infrastructure finance.
Benefits of NBFC Registration
Access to Financial Markets – Ability to lend, invest, and provide financial services.
Growing Demand – Rising demand for credit and financial products in India.
Profitability – Higher returns compared to traditional businesses.
Flexible Operations – Easier compliance compared to full-fledged banks.
Enhanced Credibility – RBI registration improves trust with customers, investors, and lenders.
Requirements
Type of NBFC – Decide the category (loan company, investment company, microfinance, etc.).
Company Formation – Must be incorporated as a Private or Public Limited Company under the Companies Act, 2013.
Minimum Net Owned Funds (NOF) – ₹2 Crores as per RBI guidelines.
Fit & Proper Management – Promoters and directors must meet RBI’s “fit and proper” criteria.
Compliance with RBI Guidelines – Adherence to prudential norms, capital adequacy, and reporting requirements.
Eligibility
Must be a company registered under the Companies Act, 2013.
Should have a minimum NOF of ₹2 Crores.
Directors must have good credit history and a clean financial record.
Company should engage only in permissible NBFC activities and not in agricultural, industrial, or real estate business.
Must comply with all RBI regulations and reporting norms.
Required Documents
For Company:
Certificate of Incorporation
Memorandum of Association (MOA) & Articles of Association (AOA)
Net worth certificate from a chartered accountant
Board resolution for NBFC formation
Business plan for next 3–5 years
For Directors & Shareholders:
PAN, Aadhaar, and Passport (if applicable)
Educational and professional qualifications
Bank statements and income tax returns
Credit report and KYC documents
Additional Documents:
Proof of registered office (rent agreement/ownership papers + utility bill)
Organizational structure and management details
Statutory auditor’s report confirming NOF compliance
Registration Process in India
Incorporate a Company – Register as a Private or Public Limited Company under the Companies Act, 2013.
Meet Capital Requirements – Ensure a minimum Net Owned Fund of ₹2 Crores.
Prepare Application & Documentation – Collect all necessary documents, business plan, and NOF certificate.
Apply Online with RBI – Submit application on the RBI COSMOS portal.
Submit Hard Copy to RBI Regional Office – Send signed application and supporting documents.
RBI Scrutiny & Due Diligence – RBI verifies the financial standing and management of the company.
Grant of NBFC License – Upon approval, RBI issues a Certificate of Registration (CoR).
Post-Registration Compliance – Adhere to RBI’s prudential norms, reporting requirements, and annual audits.
Frequently Asked Questions
A minimum Net Owned Fund (NOF) of ₹2 Crores is required.
On average, it takes 3–6 months, depending on RBI scrutiny and document verification.
Only NBFCs with a special RBI license (Deposit-taking NBFCs) can accept public deposits.
Not mandatory, but directors must demonstrate relevant financial understanding and credibility.
NBFCs cannot engage in agricultural activities, industrial production, or sale/purchase of immovable property.
Why Registrations.Biz ?
Expert Assistance
Best Price
Simples & Fast
Fully Digital Process
Best Rated
Need some advice from our experts?
Get A Call Back from Registrations.Biz!
We will make a single attempt to contact you from a withheld number, usually within 24 hours of your request.
Need some advice from our experts?
Request a Call Back Today Now!
We will make a single attempt to contact you from a withheld number, usually within 24 hours of your request.
