What is an NBFC Company?

An NBFC Company (Non-Banking Financial Company) is a financial institution registered under the Companies Act, 2013 and regulated by the Reserve Bank of India (RBI). An NBFC Company performs functions similar to a bank, like providing loans, advances, credit facilities, asset financing, and investment in securities – except it does not hold a banking license or accept demand deposits.

If you're looking to enter the financial sector and provide loan, leasing, or micro-finance services, then registering an NBFC Company is the most suitable option.

 

Types of NBFC Company

• Investment & Credit Company (ICC)

• Micro Finance Institution (NBFC-MFI)

• Infrastructure Finance Company (IFC)

• Asset Finance Company (AFC)

• NBFC-Factor

• NBFC-Account Aggregator

• NBFC-Peer to Peer Lending Platform (P2P)

• Housing Finance Company (HFC)

Each type of NBFC Company has its own specific activity and regulatory norms issued by RBI.

 

Key Features of NBFC Company

• Registered under Companies Act, 2013

• Regulated and licensed by RBI

• Cannot accept demand deposits

• Can accept public deposits (in some cases with RBI approval)

• Must maintain Net Owned Fund (NOF) of ₹10 crores for registration (as per latest RBI guidelines)

• Must comply with RBI Master Directions, audit norms, and financial reporting

 

Documents Required for NBFC Company Registration

Documents Related to the Company:

1. Certificate of Incorporation (from MCA)

2. PAN Card of the Company

3. Memorandum of Association (MOA) & Articles of Association (AOA)

4. Board Resolution for NBFC registration

5. Net Worth Certificate (CA certified)

6. Banker’s Report (showing NOF of ₹10 Crores or more)

7. Fixed Deposit Receipt (FDR) showing NOF held in bank account

8. Income Tax Returns of the Company

Documents of Directors/Shareholders:

• PAN Card of all directors

• Aadhar Card / Passport / Voter ID / Driving License

• Passport-size photographs

• DIN & DSC of Directors

• Educational Qualification Proof

• Detailed Profile/CV of each Director

• Experience proof (especially in financial sector)

• CIBIL Score and Credit Report

Other Mandatory Documents:

• Office Address Proof (utility bill & NOC from owner)

• Business Plan for 3-5 years

• Organisation Structure & KYC Policy

• Auditor's Report (certifying NOF)

• Risk Management Policy

• RBI Declaration regarding public deposits

 

Step-by-Step NBFC Company Registration Process

1. Register a Company (Private/Public Ltd.)

• Incorporate through MCA with ₹10 crore capital

• Obtain COI, PAN, TAN

2. Open Bank Account & Deposit ₹10 Crore

• Deposit must be in a fixed deposit, and a banker’s certificate must be obtained.

3. Prepare RBI Application & Business Plan

• Submit a comprehensive 5-year business plan, KYC, and risk policies.

4. File Online Application on RBI Portal (COSMOS)

• Upload scanned documents and submit Form COSMOS.

5. Submit Hard Copy to RBI Regional Office

• All certified documents must be sent to the jurisdictional RBI office.

6. RBI Verification & Approval

• RBI will scrutinize application, conduct background checks, and may request additional information.

7. Certificate of Registration (CoR)

• Once approved, RBI will issue CoR under Section 45-IA of the RBI Act, 1934.

 

Time Involved in NBFC Company Registration

Step	Estimated Time
Company Incorporation (MCA)	7–10 Days
Deposit of Capital & Documents Prep	15–30 Days
RBI Application & Submission	10–15 Days
RBI Review and Background Check	90–180 Days

Total Time for NBFC Registration: 4 to 6 Months

 

Benefits of Registering an NBFC Company

• Legal structure to operate in financial services sector

• High credibility & regulatory trust under RBI

• Flexible financial offerings: loans, leasing, hire purchase

• Access to institutional funding & private equity

• Strong growth potential in retail & SME financing

• Structured policies for NPA, KYC, and risk management

 

15+ Most Asked FAQs on NBFC Company

1. What is an NBFC Company?

An NBFC Company is a financial institution that provides banking-like services such as loans, leasing, and credit, without holding a banking license.

2. What is the minimum capital requirement to start an NBFC Company?

As per RBI's latest guidelines, the minimum Net Owned Fund (NOF) must be ₹10 Crores.

3. Can an NBFC accept deposits?

Only NBFCs registered as Deposit Accepting (NBFC-D) with RBI approval can accept public deposits.

4. What is the difference between an NBFC and a bank?

NBFCs cannot accept demand deposits or issue cheques. Banks are part of the payment and settlement system; NBFCs are not.

5. Is RBI registration mandatory for all NBFCs?

Yes. Any company engaging in financial activities mentioned under RBI norms must register with RBI.

6. How long does it take to register an NBFC Company?

Typically, it takes 4 to 6 months, depending on documentation and RBI approval time.

7. Can NBFCs provide personal loans or business loans?

Yes. NBFCs can lend personal, education, business, gold, and vehicle loans.

8. Is FDI allowed in NBFCs?

Yes, 100% FDI is allowed under the automatic route for most NBFC activities.

9. What are the post-registration compliances for an NBFC?

Annual filing with RBI, statutory audit, monthly return submissions, maintaining NOF, and compliance with RBI Master Directions.

10. What is the RBI CoR?

CoR is the Certificate of Registration issued by RBI that legally allows a company to operate as an NBFC.

11. Can NBFCs operate across India?

Yes, an NBFC Company can operate pan-India after registration.

12. Do NBFCs require audit?

Yes, a statutory audit by a Chartered Accountant and an auditor’s report on NOF are mandatory.

13. Can NBFCs be listed on stock exchanges?

Yes, if they fulfill SEBI norms and choose to go public.

14. Can NBFCs collaborate with Fintech platforms?

Absolutely. NBFCs often partner with fintech companies to offer digital lending and EMI services.

15. What are the common business models for NBFC Companies?

Micro-finance, gold loan, vehicle loan, housing finance, and SME lending are the most common models.

16. What happens if NBFC fails to comply with RBI norms?

RBI may impose penalties, restrict operations, or cancel the registration of the NBFC.

 

Conclusion: Start Your NBFC Company with Experts

The demand for credit, fintech, and digital lending is growing fast. Setting up an NBFC Company positions you to offer a wide range of financial services under a structured and compliant framework. While the process is complex, expert help can make it seamless.

✅ Contact us now to begin your NBFC Company registration process. Our team handles everything — from company incorporation to RBI licensing and documentation support.