NBFC Registration – A Comprehensive Guide

Non-Banking Financial Companies (NBFCs) are financial institutions that provide a variety of financial services, such as lending, investment, and insurance. NBFCs are regulated by the Reserve Bank of India (RBI) and must be registered with the RBI before they can start operations.

The process of NBFC registration is as follows:

  1. Preliminary Requirements: Before you can apply for NBFC registration, you must meet certain preliminary requirements. These requirements include:
    1. You must be a company registered under the Companies Act, 2013 or 1956.
    1. Your company must have a minimum net owned fund (NOF) of ₹2 crore.
    1. You must have a board of directors with at least three members.
    1. One of the directors must have experience in the financial sector.
    1. You must have a sound business plan.
  2. Application: Once you have met the preliminary requirements, you can apply for NBFC registration. The application form can be downloaded from the RBI website. The application form must be accompanied by the following documents:
    1. Certificate of incorporation of the company.Memorandum of association and articles of association of the company.Audited balance sheets and profit and loss accounts for the last three years.Board resolution for NBFC registration.
    1. KYC documents of the directors and promoters.
  3. Inspection: After the application is submitted, the RBI will conduct an inspection of the company. The inspection will assess the company’s financial stability, management, and compliance with RBI regulations.
  4. Registration: If the inspection is satisfactory, the RBI will grant NBFC registration to the company. The registration certificate will be issued by the RBI.

NBFC Registration Fees: The NBFC registration fees are as follows:

  • For companies with a NOF of ₹2 crore to ₹5 crore: ₹5 lakh
  • For companies with a NOF of ₹5 crore to ₹10 crore: ₹10 lakh
  • For companies with a NOF of ₹10 crore and above: ₹20 lakh

Renewal of NBFC Registration: The NBFC registration is valid for a period of five years. The registration must be renewed every five years. The renewal process is similar to the registration process.

Benefits of NBFC Registration: There are several benefits to NBFC registration. These benefits include:

  • The ability to raise funds from the public.
  • The ability to offer a wider range of financial services.
  • The ability to access RBI liquidity facilities.
  • The ability to operate across India.

Conclusion: NBFC registration is a complex process, but it is essential for companies that want to provide financial services. By following the steps outlined in this guide, you can successfully register your NBFC with the RBI.

Additional Information:

  • The RBI has a website dedicated to NBFCs. The website contains information on the NBFC registration process, the NBFC regulations, and the NBFC directory.
  • The RBI also has a helpline for NBFCs. The helpline can be reached at 1800-22-7282.
  • There are a number of consultants who specialize in NBFC registration. These consultants can help you with the registration process and ensure that your application is compliant with RBI regulations.