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What is an NBFC Company? And why it is formed?

NBFC or Non-bank Financial Company refers to a financial company or institution. It provides various banking services without the need for a banking license.

NBFC companies are formed for providing financial services like loans, stock acquisitions, equity and debt investments, funds like money market, hedge and private equity, mortgage lending, and P2P lending.

Under section 45-I (c) of the RBI Act, and as per the Companies Act 2013 or 1956, a non-banking company that carries financial business is eligible for NBFC company registration.

If you wish to start a your own finance company and make impact. Get your NBFC company registered now.

NBFC Company Registration Guide

Eligibility to register as NBFC company?

Registration Under Companies Act

The Company must be a registered one under the Companies Act 2013 or 1956

Minimum Net Owned Fund

Except for specialized NBFCs like NBFC-MFIs, NBFC-Factors, and CIC, the company must have at least a NOF (Net Owned Fund) of Rs. 2 Crore.

Neat and Clean CIBIL Records

A company must have clean CIBIL records to get NBFC company registration.

Highly Experienced Directors

1/3 rd of the directors of the company must have high experience on financial grounds.

CA Certified Directors and Shareholders

The shareholders, directors, and the organization itself should have a net worth certificate. It must be CA certified.

Finance Related Company Name

The entity opting for NBFC registration must have a middle name. It can be like, investment, finance, leasing, etc.

Experienced NBFC Consultant

If you have an experienced NBFC consultant, then you can get through the NBFC registration procedure. Then, you will get the license at ease.

Benefits of Registering a NBFC Company

Uncomplicated Loan and Credit Facility
Unlike the banking services, an NBFC offers simple loan and credit system at ease.
Easy License Issuing
Are you wondering how to form an NBFC company? Do not worry much, as getting a license for an NBFC is quite easy.
Reach out to a Larger Audience
Simplified procedures and the digitalized system make it easier for an NBFC to reach out to a wide range of customers.
Easy Registration
NBFC company registration services come with straightforward procedures. You can get through them at ease and form your company. Unlike banks which is strictly regulated by banks.
Simple Loan Recovery System
The lower limit of loan amount makes it easier for the borrowers to return and lenders to recover it.
Good Industry Growth Ratio
The ease of procedures for funding increases the market demand of NBFC companies. It is good to start an NBFC as the growth ratio is quite high.
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Documents Required For NBFC Company Registration

Incorporation Certificate

It is mandatory to have the company incorporation certificate after passing all the requirements.

Certificate on Owned Funds

Certification on owned funds as per the date of application from the statutory auditor is needed.

Address Proof

Any document related to the company’s address is required.

PAN/ CIN Document

Give one copy of the PAN/CIN of the company.

MOA and AOA Certified Copy

Provide a copy of the MoA and AoA certifications.

Directors’ CIBIL /Credit Reports

Documentations should contain CIBIL/credit reports of each director of the company.

Company Information and Company Brochure

You must provide a copy of detailed information about the company and its brochure.

Audit Details

Provide complete details of the audited balance sheet along with profit and loss statements of the past 3 years.

Statutory Auditor’s Certificate

Produce a certificate issued by the statutory auditor stating that the company doesn’t hold and accept any public deposit.

Bank related information and Income Tax Return

Provide all the bank details like the number of accounts, balance, credit, debit, and loans for the NBFC company registration service. Also, provide the income tax return details.

Signed List of Directors

Attach a complete list of directors having signatures of each one of them.

Board Resolution for NBFC Activity Allowance and FPC Copy

Produce a copy for board resolution that certifies RBI-granted NBFC allowance, and also provide the ‘Fair Practices Code’.

Procedure for NBFC Company Registration

Partnership Firm is registered with the registrar of firms of the state. An application form filled and signed by all partners along with the fees has to be submitted at Registrar of Firms (RoF) office.
  • Company Incorporation

    Incorporation of the Company

    The company must possess a valid incorporation certificate. It must be issued under the Companies Act 2013 or 1956. Also, the certification should be made as a Public or Private Limited Company.

  • name-application

    Registration with RBI

    Apply online for the NBFC company registration. Then, submit the required documents on the RBI’s official COSMOS website.

     

  • document-preparation

    Filing Up of the Excel Form

    After submission, you need to download the excel form that will show up. Then, fill-up the form accordingly.

  • CARN-allocation-NBFC

    Allocation of the CARN Number

    Once you have submitted the excel form, your company will get a CARN number. It acts as a reference to the CoR application. 

  • documents-submission

    Submission of the Application and Documents to the Regional Office

    Submit a copy of the application form. Also, provide the CARN number and valid supporting documents at the regional office. It will ease the scrutiny process.

  • work-completion

    License Issuing

    After completion of scrutiny, the RBI Head Office will issue the license for your NBFC company registration service.

NBFC Company Registration Service Packages

Basic Partnership

Partnership Registration only
₹2500
1490
  • PAN & TAN Registration
  • Partnership Deed
  • Stamp Paper Purchase Support
  • Free CA Consultancy

Comprehensive Plan

Includes GST + MSME + TM
₹14500
8990
  • PAN & TAN
  • Partnership Deed
  • Stamp Paper Purchase Support
  • Free CA Consultancy
  • MSME Certification (Optional)
  • GST Registration
  • TM Registration (For Startups, MSME & Individuals)

Basic Partnership

Partnership Registration only
₹4500
2990
  • PAN & TAN Registration
  • Partnership Deed
  • Stamp Paper Purchase Support
  • Free CA Consultancy
  • GST Registration
  • MSME Registration (Optional)

Frequently Asked Questions

Answer: NBFC License comes with lifetime validity. But, it can be cancelled due to non-compliance. 

Answer: Approximately a Government fee of Rs. 3,50,000 is required for getting the NBFC license in India.

The normal registration route can take up to 30 days but registration through SPICe takes just 7 days.

Answer:  Yes, you can be the director of more than 2 NBFCs, there’s no limit.

Answer: Opting for a fresh NBFC registration is better. This registration type has a simplified process. But, the NBFC takeover procedure is quite complicated.

Answer: There are two categories of NBFCs. One is Deposit accepting NBFCs, and the other is Non-Deposit Accepting NBFCs.

Answer: It may take up to 91 to 21 days to get your NBFC company registration service in India.

Answer: NBFCs with special authorization on a particular condition can be allowed to accept deposits.

Answer: As per the RBI guidelines, you must have at least Rs. 5 Crore NOF for a microfinance business.

Answer: The 50-50 test in NBFC is nothing but the licensing procedure.

Answer: Yes, it is. As per the statistics from 2006 to 2013, the average growth rate was 22% per year.

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