NBFC Registration in India
Incorporate your NBFC in India with Ease!
Launch your NBFC in India efforttlessly. Our dedicated team is here to guide you through every complex step of the NBFC registration process, ensuring seamless compliance while aligning with your business goals.
NBFCs (Non-Banking Financial Companies), as defined under Section 45-IA of the RBI Act, 1934, and the Companies Act, 2013, have a significant role in financial operations that involve secured and unsecured loans, marketplace lending, investments, information services providers, and any other commercial reasons. Unlike Commercial and Cooperative Banks, NBFCs operate without a banking license but remain subject to stringent oversight and compliance with the Reserve Bank of India (RBI)’s regulatory framework.
The RBI ensures robust governance of NBFCs through the policies outlined in Chapter III B of the RBI Act, 1934 — letting only committed and compliant players enter the market.
Registering as an NBFC in India is a detailed process, requiring strict adherence to eligibility criteria and submission of extensive documentation. But this process is far more than just a regulatory checkbox—it opens doors to credibility, compliance, and a competitive edge in a tightly regulated industry.
In a market hungry for innovative financial solutions and and the RBI’s increasing emphasis on regulatory adherence, aspiring NBFCs must act swiftly. Delays in registration can lead to missed opportunities. Taking quick action positions businesses to make most out of India’s large scale financial sector while maintaining full regulatory alignment.
Want to know the 3 Core C's for NBFC Registration?
For the NBFC License to be issued, the following requirements must be met:
- More than 50% of total assets are financial assets.
- The percentage of gross revenue from financial assets should be greater than 50%.
The entity desiring registration should meet the following requirements before applying to RBI:
- To incorporate an NBFC, the Companies Act of 1956 or the Companies Act of 2013 should be followed.
- The company must have a minimum of INR 2 crore in net owned funds, which are determined using the company’s most recent audited balance sheet. Noted: As per a notification issued by RBI on October 22, 2021; – Regulatory minimum Net Owned Fund (NOF) for NBFC-ICC, NBFC-MFI and NBFC-Factors shall be increased to from ₹2 crore to ₹10 crore [Notification No. DOR.CRE.CGM(MM)2022].
Based on their liabilities, the following NBFC types need the RBI certificate:
- NBFCs that accept deposits: Currently, the RBI is NOT approving any new licenses in this category.
- There are two categories of non-deposit-taking NBFCs: Type 1 without customer interface and Type 2 with customer interface.
Which entities in India are not NBFCs?
An NBFC in India does not include the following entities as their primary business:
- Agriculture activity
- Industrial activity
- The purchase and sale of any items
- Purchase/sale/construction of an Immovable property
Who We’re & Our Purpose?
At Finguru India, we are a years of experienced backed team. Here, we take the weight off your shoulders, ensuring seamless compliance with the RBI Act and Companies Act. Whether meeting financial asset thresholds, crafting a robust five-year plan, or adhering to FEMA regulations for foreign investments, our team ensures every step is hassle-free.
With Finguru India, you’ll benefit from:
End-to-End Guidance:
End-to-End Guidance:
Expert Document Preparation:
Expert Document Preparation:
Dedicated Support:
Dedicated Support:
Compliance Confidence:
Compliance Confidence:
Why should you incorporate an NBFC in India?
Know the Advantages of NBFC Registration in India. Here’s what you gain:
- Diverse Services: Loans, portfolio management, and money market trading.
- Higher Profits: Lower investments, higher returns than banks.
- Simpler Process: Easier and faster registration than bank licenses.
- Quick Loans: Faster approvals and disbursals.
- Flexible Criteria: Loans approved without strict credit checks.
- Easy Recovery: Efficient recovery via asset attachment, foreclosure, or repossession.
- High Growth: Projected 18.5% CAGR (2021–2026).
- Simple Setup: Ideal for serving small borrowers.
Simplifying NBFC registration
When building a skyscraper—solid foundations are critical, and every detail matters. That’s what NBFC registration is: the foundation of your business. Our role? Acting as your architects, ensuring every requirement is met.
Finguru India’s team we will take care of this, while you focus on your compatabilties:
Registration Requirements:
- Company Structure: The applicant must be a registered entity under the Companies Act of 1956 or 2013.
- Director Expertise: At least one-third of the directors must have prior experience in the financial industry.
- Business Plan: A comprehensive five-year business plan is required.
- Minimum Net Owned Funds (NOF): The applying company must maintain a NOF of at least INR 2 crore, with applicable taxes paid.
- Capital Quality: RBI will assess capital quality to ensure compliance with legal standards.
- Creditworthiness: The company, its directors, and shareholders must have good credit with no history of intentional loan defaults to banks or NBFCs.
- FEMA Compliance: If foreign investment is made, the company must comply with FEMA regulations. Foreign Direct Investment (FDI) is permitted from FATF-compliant countries.
Registration Process:
- Register Under the Companies Act: Registering your business as per the Companies Act, 1956/2013.
- Ensure Minimum NOF: Maintaining the required NOF according to your NBFC type.
- Application Form: Completing and submitting the application form on the RBI’s official website.
- Document Submission: Attaching the necessary documents along with your application.
- CARN Number: Upon submission, taking care of the CARN number which will be issued to track the application status.
- Submit to RBI Regional Office: Sending the application form to the RBI’s regional office.
- Approval: Kepping track if registration is granted and all regulatory requirements are met.
Schedule 30-minute call with our expert
Checklist of Documents Required for NBFC Registration
- Certified copies of the company’s COI, MOA, and AOA
- Net worth certificate of Directors, Shareholders & Company
- Certificates of education for the suggested directors
- Highest experience certificates
- Business profile of directors and shareholders
- Credit report of directors & shareholders
- KYC information, the company’s PAN, its GST number, and its address documentation
- Company bank account details [Rs. 10 Cr. must have been placed as NOF]
- Balance sheet that has been audited over the past three years or since incorporation
- Disclosures by Related Parties
- Income tax Returns
- No lien exists on the fixed deposit, according to a banker’s report
- Board resolution format for NBFC registration
- A detailed action plan for the next five years that includes a risk assessment policy and a fair practices code
- Business Structure & Loan Structure
- IT Policy
Finguru India - Your Trusted Partner for Regulatory Excellence
Welcome to Finguru India, where we offer tailored services for Non-Banking Financial Companies and regulatory compliance with RBI.
Our team of industry experts provides
- Licensing and Registration Support
- Regulatory Compliance
- Strategic Advising,
- Risk Management Strategies
- Financial Services
Let us empower your NBFC business in India with the knowledge and tools for success. Finguru India is your dedicated partner on the journey to NBFC excellence. We will help you navigate the complexities of the financial industry while ensuring compliance and sustainable growth
Why Finguru India?
We know NBFC registration can be complex, so our team of seasoned experts is here to support you at every step.
- Swift, Streamlined Process: Experience a faster, more efficient registration journey with automated document submission and coordinated support from government agencies.
- Industry Insights and Expertise: Leverage our knowledge to gain insights on best practices and stay updated on emerging regulatory changes.
- Tailored Solutions: Every business is unique; we personalize our registration support to fit your specific requirements.
- Commitment to Excellence: Trust Finguru India’s dedicated professionals to handle the complexities of NBFC registration, offering you confidence and peace of mind.
- Growth-Oriented Approach: With our team handling your registration, you can concentrate on growing your business. We offer tailored guidance and ongoing support every step of the way.
Before Finguru India
- Struggling with the company registration
- Confused with complex regulatory requirements
- Tedious approval processes
- Legal incompetency and heavy penalties
- Multiple steps
After Finguru India
- Smooth, hassle-free registration
- Expert guidance to clarify regulations
- Direct communication with regulatory bodies
- Legal experts by your side
- Timely readiness, well ahead of deadlines
NBFCs (Non-Banking Financial Companies) are financial entities that engage in lending and accepting deposits from the public without requiring a full banking license.
There are majorly two types of NBFC.
- Deposit-Taking NBFC: NBFCs are allowed to take deposits from the public, lend through the public, and own funds like Bajaj Finance.
- Non-Deposit-Taking NBFC: These NBFC companies in India do not accept deposits and operate solely using their own funds, such as Parfait Finance and Investment Private Limited and Davinta Finserv Private Limited.
To register for an NBFC in India, you need to go through the NBFC registration process by submitting an application to the RBI. The RBI will consider several NBFC registration criterias before issuing a license, including:
- Composition of the board of directors
- Verified source of capital to invest in the NBFC business in India
- No promoters or associated person shall be convicted of CIVIL and Criminal offenses, including section 138 of the Negotiable Instrument Act.
Yes, to lend money at the pan-India Level, you must have either a banking license or a Non-Banking finance Company license from RBI.
Based on Nature
| S.No. | Nature | Count |
| 1. | NBFC Accepting Deposit | 558 |
| 2. | NBFC Not Accepting Deposit | 9446 |
Based on Activities
| S.No. | Activities | Count |
| 1 | NBFC- MFI | 97 |
| 2 | NBFC – Infrastructure Debt fund | 3 |
| 3 | NBFC- Factor | 8 |
| 4 | NBFC- Core Investment company | 59 |
| 5 | NBFC- Assets Finance Company | 278 |
| 6 | NBFC- Infrastructure Finance company | 9 |
| 7 | NBFC -P2P Lending | 25 |
| 8 | NBFC – ARC | 29 |
| 9 | NBFC-ICC | 9346 |
| 10 | NBFC Assets Size 100 crore and above | 946 |
| 11 | NBFC-Account Aggregator | 5 |
| 12 | NBFC – Non operating financial holding company | 3 |
Note :- The difference in total due to various different dates on RBI website for the data updation . You may visit to www.rbi.org.in for the lates list.
The minimum capital requirement to register the NBFC is 10 crore or more; however, if the existing NBFC holds a valid license before 22nd Oct 2021, it must maintain the NOF 5 crore by March 2025 and 10 crore by March 2027. However, for NBFC-P2P, NBFC-AA, and NBFCs with no public funds and no customer interface, the NOF shall continue to be ₹ 2 crores. It is clarified that there is no change in the existing regulatory minimum NOF for NBFCs – IDF, IFC, MGCs, HFC, and SPD.
After registration, we offer ongoing support that includes:
- Regular compliance monitoring and updates on regulatory changes.
- Assistance with financial reporting and audits.
- Advisory services for strategic growth, helping your fintech startup in India navigate the complexities of the industry and scale successfully.
