NBFC Registration in India (Online Process)
End-to-End RBI-Compliant Support | Structuring, Documentation & COSMOS Filing | Trusted Financial Legal Partner
Introduction and Its Compliance
An NBFC (Non-Banking Financial Company) is a company registered under the Companies Act, 2013 that is engaged in the business of loans and advances, acquisition of shares/ stocks/ bonds/ debentures/ securities issued by Government or local authority or other marketable securities of a like nature and more other like activities but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale, purchase or construction of immovable property. The company provides loans as well as asset financing, leasing, and investment in other financial products. Professionals Law provides comprehensive NBFC registration assistance, from organization structuring, application filing, pre-registration advisory to post-registration compliance.
Why It Is Needed
NBFC registration is necessary for any financial institution that wants to legally engage in lending, investment or financing activities without accepting demand deposits. It helps in maintaining the financial institution under the laws and regulations as defined by the RBI Affirmative in maintaining the bank under legal acts to operate in the financial system.
Benefits and Advantages
Access to Financial Markets
An NBFC structure enables businesses to offer lending and financing services, attract investments and participate in India’s growing financial inclusion initiatives.
Increased Credibility
RBI-registered NBFCs enjoy higher credibility and trust among investors, customers and banks, helping in securing funding and business partnerships.
Diversified Product Offerings
NBFCs can offer a wide range of financial services, including microfinance, gold loans, asset leasing, investment advisory and more.
Flexible Operations
Compared to banks, NBFCs operate with fewer compliance obligations on certain fronts, making them more agile and efficient in operations.
Scalability
With the right structure, NBFCs can scale across geographies, diversify portfolios and create niche financial products catering to underserved markets.
Eligibility Criteria
- Must be a company registered under the Companies Act, 2013
- Minimum Net Owned Fund (NOF) of ₹10 crores for NBFC-ICC (as per latest RBI guidelines)
- Directors and promoters must have a clean financial track record and relevant experience in finance
- Business must be involved in financial activities covering more than 50% of its total assets and income
- A well-structured business plan and KYC policy are mandatory
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Documents Required
Steps for Applying
Business Structuring
Professionals Law helps set up a Private or Public Company with the right object clause.
Documentation
Preparation and collection of RBI-mandated documents, including NOF proof and business plan.
Online Application
Filing the NBFC registration application on the RBI COSMOS portal.
Background Checks
RBI conducts background verification and may request clarifications.
Approval
Upon satisfaction, RBI grants the NBFC Certificate of Registration (CoR) under Section 45-IA of the RBI Act.
Frequently Asked Questions
Is NBFC registration mandatory for lending companies?
What is Net Owned Fund (NOF)?
Can an NBFC accept deposits?
What types of NBFCs are there?
Is RBI registration permanent?
Can foreign investment be allowed in NBFCs?
What post-registration compliances must be followed?
How does Professionals Law assist in NBFC registration?
Can an NBFC be converted into a bank later?
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