Non-Banking Finance Company (NBFC) Registration in India

Eligibility Criteria for NBFC Registration

• Must be registered as a company under Indian law.

• Minimum Net Owned Fund (NOF) of ₹2 crore is required.

• Company objectives must align with the NBFC business scope.

• At least one director with financial sector experience is mandatory.

• Clean CIBIL record for both the company and its directors.

• Ongoing compliance with RBI guidelines is required.

Services NBFCs Can Offer

• Credit and loan facilities

• Advances with or without charge creation

• Acceptance of deposits (non-demand deposits)

• Underwriting of shares

• Leasing and hire purchase services

• Retirement planning solutions

• Loans against share pledges

• Money market trading

• Merger and acquisition assistance

Scope of Operations for RBI-Approved NBFCs

• Provide a wide range of banking-like services, including lending and credit assistance.

• Conduct trading in money and capital market instruments, including shares, equities, debentures, bonds, and securities.

• Offer portfolio management services and corporate advisory, including guidance on mergers and acquisitions.

• Engage in underwriting and investment activities.

• Assist clients with market research, feasibility studies, and corporate analysis while facilitating loans.

With proper guidance from an experienced NBFC registration consultant, your company can successfully navigate the RBI process and unlock a wide range of financial service opportunities.

Documents Required for NBFC Registration in India

To apply for NBFC registration with the Reserve Bank of India (RBI), the following documents are typically required:

1. Certificate of Incorporation (CIN) of the company

2. Memorandum of Association (MoA) and Articles of Association (AoA)

3. Board Resolution approving the NBFC registration application

4. Declarations as per Annexure I, II, III of the RBI NBFC application format

5. Fixed Deposit Receipt along with a Banker’s Certificate

6. KYC documents of directors, including educational certificates

7. CIBIL records of both the company and its directors

8. Audit Report (required if the applicant is an existing company)

9. Annual Financial Statements (for existing companies only)

10. Directors’ Report (for existing companies only)

11. Banker’s Report of any related company (holding/subsidiary, if applicable)

12. Experience Certificate of at least one director in the financial sector

Ensuring all these documents are complete and accurate is crucial for a smooth NBFC registration process.