Non-Banking Financial Companies (NBFCs) are an essential part of India’s financial ecosystem, providing credit and financial services to individuals and businesses beyond the reach of traditional banks. Setting up an NBFC requires strict compliance with the Reserve Bank of India (RBI) regulations. Here’s a detailed breakdown of the requirements, documents, and registration process for obtaining an NBFC license in India.
Key Requirements for NBFC Registration
1. Company Incorporation
* The applicant must first register as a company under the Companies Act, 2013.
2. Minimum Net Owned Fund (NOF)
* A minimum paid-up equity share capital of ₹10 crore is required.
* This amount should be maintained as a **fixed deposit** with a nationalized bank.
3. Directors & Shareholders
* PAN, bank account details, KYC, and credit reports of directors and shareholders.
* Educational qualifications and business experience certificates must be furnished.
* Directors must have a clean financial record and strong professional background.
4. Company Documents
* Certificate of Incorporation.
* Certificate of Commencement of Business (for public companies).
* Memorandum of Association (MOA) & Articles of Association (AOA).
5. Business Plan
* A board-approved business plan with at least five years of financial projections.
6. Board Resolution
* A formal resolution authorizing the NBFC application and nominating a signatory.
Registration Process for an NBFC
1. Incorporate the Company
* Register under the Companies Act, 2013.
2. Arrange Capital
* Fulfill the Net Owned Fund requirement of ₹10 crore and place it as a fixed deposit with a nationalized bank.
3. Prepare Documents
* Collect company papers (MOA, AOA), director/shareholder details, business plan, and banker’s report.
4. Online Application (COSMOS Portal)
* Submit your application on RBI’s COSMOS portal ([www.cosmos.rbi.org.in](http://www.cosmos.rbi.org.in)).
5. Obtain Reference Number
* After submission, you will receive a Company Application Reference Number (CARN) for tracking.
6. Physical Submission
* Send a signed physical copy of the application and supporting documents to your regional RBI office.
7. RBI Verification & Approval
* RBI reviews your documents, business plan, and compliance.
* Upon successful verification, the Certificate of NBFC Registration will be issued.
Quick Snapshot: NBFC Registration at a Glance
| Step | Details |
| Company Incorporation | Register under Companies Act, 2013 |
| Capital Requirement | Maintain ₹10 crore NOF as FD with a nationalized bank |
| Key Documents | MOA, AOA, Incorporation Certificate, Business Plan, Director/Shareholder KYC |
| Application Portal | Online via RBI COSMOS Portal |
| Tracking ID | Company Application Reference Number (CARN) |
| Final Step | Submit hard copy to RBI → Verification → Registration Certificate |
✅ Pro Tip: RBI is very stringent with NBFC registrations. Ensure that your directors have clean financial records, your NOF requirement is strictly met, and your business plan is realistic and detailed.
Related Posts:
Disclaimer:
The information provided herein is exclusively for educational purposes based on publicly available sources and subject to change. The author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/real estate decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
