8 August 2025, 01:52 PM
Registering a Non-Banking Financial Company (NBFC) in India is a regulated process under the Reserve Bank of India (RBI), guided by the RBI Act, 1934, and the Companies Act, 2013. NBFCs are financial institutions that offer banking-like services such as loans, credit facilities, and investment products, but they do not hold a banking license.
The first step in the NBFC registration process is to incorporate a company as either a private limited or public limited company under the Companies Act. The company’s primary objective, as stated in the Memorandum of Association (MoA), must be to conduct financial activities.
Next, the company must ensure a minimum Net Owned Fund (NOF) of ₹2 crore is available (higher for certain categories like infrastructure or microfinance NBFCs). This amount must be confirmed through bank statements and a certificate from a statutory auditor.
Once the company is incorporated and the NOF requirement is met, the applicant must apply for NBFC registration through the RBI’s COSMOS online portal. The application should include several key documents, such as:
After submitting the online application, a physical copy of the application and supporting documents must be sent to the Regional Office of RBI.
The RBI will review the application to verify compliance with all guidelines, the soundness of the business model, and the integrity of the promoter. If satisfied, RBI will issue a Certificate of Registration (CoR), officially allowing the company to operate as an NBFC in India.
Due to the complex regulatory environment, it is highly recommended to consult legal or financial advisors experienced in RBI compliance.
The first step in the NBFC registration process is to incorporate a company as either a private limited or public limited company under the Companies Act. The company’s primary objective, as stated in the Memorandum of Association (MoA), must be to conduct financial activities.
Next, the company must ensure a minimum Net Owned Fund (NOF) of ₹2 crore is available (higher for certain categories like infrastructure or microfinance NBFCs). This amount must be confirmed through bank statements and a certificate from a statutory auditor.
Once the company is incorporated and the NOF requirement is met, the applicant must apply for NBFC registration through the RBI’s COSMOS online portal. The application should include several key documents, such as:
- Certificate of Incorporation
- MoA and Articles of Association
- Board resolution for NBFC registration
- Detailed business plan
- KYC details of directors and shareholders
- Financial statements
- Auditor’s certificate confirming NOF
- Organization structure and IT systems overview
After submitting the online application, a physical copy of the application and supporting documents must be sent to the Regional Office of RBI.
The RBI will review the application to verify compliance with all guidelines, the soundness of the business model, and the integrity of the promoter. If satisfied, RBI will issue a Certificate of Registration (CoR), officially allowing the company to operate as an NBFC in India.
Due to the complex regulatory environment, it is highly recommended to consult legal or financial advisors experienced in RBI compliance.