NBFC Registration

NBFC Registration in India – Complete Guide

What is an NBFC?

A Non-Banking Financial Company (NBFC) is a financial institution registered under the Companies Act, 2013, engaged in financial activities other than banking, such as:

• Loan and credit facility

• Investment in securities

• Asset financing

• Leasing and hire-purchase

• Microfinance

• Infrastructure finance

• Peer-to-peer lending

• Housing finance

NBFCs are regulated by the Reserve Bank of India (RBI) under the RBI Act, 1934.

Key Features of NBFCs:

• Provide financial services without a banking license

• Cannot accept demand deposits like banks

• Required to maintain net owned funds (NOF) of at least 10 crore

• Subject to RBI compliance and regulations

Types of NBFCs:

1. Investment & Credit Company (ICC)

2. Infrastructure Finance Company (IFC)

3. Micro Finance Institution (MFI)

4. Housing Finance Company (HFC)

5. NBFC-Factor

6. NBFC-Peer to Peer Lending Platform (P2P)

7. Account Aggregator (AA)

8. Core Investment Company (CIC)

Eligibility Criteria:

• A company registered under the Companies Act, 2013

• Minimum Net Owned Fund (NOF): 10 Crore

• At least 1/3rd of the directors must have financial experience

• Clean credit history of promoters/directors

• Fit and proper management as per RBI norms

Documents Required:

From the Company:

• Certificate of Incorporation

• MOA & AOA with financial business clause

• Net worth certificate from CA

• Board resolution for NBFC registration

• Audited financial statements of the company

From Directors/Shareholders:

• PAN, Aadhaar, and address proof

• Credit Report (CIBIL)

• Educational and professional qualification proof

• Director’s profile and experience

Registration Process:

1. Incorporate a Company (Private or Public Ltd.)

   • Add financial activity clause in MOA.

2. Ensure 10 Crore Net Owned Fund

   • Capital must be deposited in the company bank account.

3. Prepare Documentation

   • Financial projections, business plan, KYC, etc.

4. Apply Online on RBI COSMOS Portal

   • Submit application and upload documents.

5. Submit Physical Copy to RBI Regional Office

   • With stamped acknowledgment of online application.

6. RBI Due Diligence & Background Checks

   • RBI may request clarifications or meetings.

7. Receive NBFC License

   • Upon approval, the company is listed on the RBI’s NBFC list.

Time Required:

3 to 6 months, depending on document completeness and RBI processing.

Post Registration Compliance:

• Periodic returns to RBI

• Annual statutory audits

• Credit rating (if applicable)

• Prudential norms compliance

• Appointment of statutory/internal auditor

• Maintaining asset-liability ratios, capital adequacy

Restrictions for NBFCs:

• Cannot accept demand deposits

• Cannot issue cheques drawn on itself

• Must disclose interest rates and charges transparently

Why Choose SSA TAX for NBFC Registration?

We provide end-to-end support for:

• Company incorporation with financial objectives

• Preparing business plan & financial projections

• Ensuring RBI-compliant documentation

• Filing application on COSMOS portal

• Responding to RBI queries

• Post-registration compliance & advisory

Would you like this as a client brochure, website page, or WhatsApp promotional message?