NBFC REGISTRATION
Ever wondered how financial companies lend, invest, or fund startups without being banks? They’re Non-Banking Financial Companies (NBFCs) — crucial players in India’s credit system. To operate legally, an NBFC must register with the Reserve Bank of India (RBI) under the RBI Act, 1934. This registration ensures financial stability, regulatory compliance, and consumer protection — essential for any business dealing with money or lending.
Documents Required
- Certificate of Incorporation (COI) and Memorandum & Articles of Association (MoA & AoA)
- PAN and TAN of the company
- Board Resolution for NBFC registration
- Audited balance sheet and Profit & Loss account along with directors & auditors report (for last three years)
- Copy of Fixed Deposit Receipt (minimum ₹10 crore Net Owned Fund)
- Bankers’ Report confirming no lien on deposited funds
FAQs
Yes. Any company engaging in financial activities like lending, investment, or financing must obtain an NBFC Certificate of Registration (CoR) from RBI before commencing operations.
Yes. Both Private Limited and Public Limited companies can apply, but Partnerships or LLPs cannot be registered as NBFCs.
A minimum Net Owned Fund (NOF) of ₹2 crore is required for most NBFC categories.
Only after obtaining a special deposit-taking approval from RBI. Most NBFCs operate as non-deposit-taking (NBFC-ND) companies.
Yes, but it must comply with FDI (Foreign Direct Investment) Policy and RBI guidelines, including bringing capital through approved banking channels.
No, not unless specifically approved by RBI. NBFCs generally provide loans, investments, and asset financing services.