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N.B.F.C Registration in
We provide expert consultancy for company registration, GST, ITR filing, and FSSAI certifications, ensuring seamless legal compliance.
A Non-Banking Financial Company (NBFC) is a business entity that is registered under the Companies Act, 1956/2013. Its activities include lending and advances, purchasing shares, stocks, bonds, debentures, and other marketable securities issued by the government or local authority, as well as leasing, hire-purchase, insurance, and chit business. However, this definition excludes any institution whose primary business is engaged in agriculture, industry, the purchase or sale of any goods (other than securities), the provision of any services, or the sale, purchase, or construction of real estate.
✅ The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and a maximum period of 60 months. They cannot accept deposits repayable on demand.
✅ NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests.
✅ NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.
✅ NBFCs (except certain AFCs) should have minimum investment grade credit rating.
In India, Non-Banking Financial Companies (NBFCs) are categorized into different types based on their activities, liabilities, and other factors. Here’s an overview of the types of NBFC registrations in India:
An AFC primarily finances physical assets such as automobiles and machinery. At least 60% of its total assets are devoted to financing these types of assets.
An Investment Company focuses on investing in securities, including shares, stocks, bonds, and debentures, with the primary aim of earning returns from these investments.
An HFC is focused on providing loans for purchasing, constructing, or renovating residential properties, thereby supporting the housing sector.
A Loan Company provides loans and advances that are not related to asset financing, catering to various financial needs of individuals and businesses.
An MFI offers small loans and other financial services to low-income or underserved populations, typically focusing on rural or economically disadvantaged areas.
An IFC is engaged in financing infrastructure projects. It must have at least 75% of its total assets in the form of infrastructure loans.
A CIC holds equity investments in group companies and is not involved in trading of these securities. It mainly acts as a holding company.
An MGC provides guarantees for mortgage loans, helping to reduce the risk for lenders in the housing finance sector.
A P2P platform connects individual borrowers and lenders directly through an online platform, facilitating personal loans without traditional banking intermediaries.
The eligibility criteria that applicants seeking NBFC registration must fulfil include the following:
Entities applying to obtain NBFC registration in India are required to submit the following documents:
Business entities that meet the required NBFC compliances can leverage the following benefits:
Registering a Non-Banking Financial Company (NBFC) in India offers several benefits, making it a lucrative business opportunity for financial service providers. Here are the key advantages:
Welcome to our NBFC Company Registration FAQs! Here, we address common queries related to the process of registering a Non-Banking Financial Company (NBFC). Whether you're a first-time entrepreneur or seeking to expand your business, our goal is to guide you smoothly through the registration procedure, compliance requirements, and documentation.
The process for NBFC company registration involves incorporating the company under the Companies Act, obtaining a Certificate of Incorporation, and then applying for an NBFC license from the RBI.
The incorporation process involves submitting necessary documents, including the MOA and AOA, obtaining DSC and DIN, and filing an application with the Ministry of Corporate Affairs.
The applicant must submit an online application on the RBI COSMOS portal, followed by submission of hard copies of necessary documents to the RBI.
To apply for an NBFC license, you need to register the company under the Companies Act, meet the minimum capital requirements, and file an application with the RBI.
NBFCs provide financial services similar to banks but cannot accept demand deposits, issue cheques, or be a part of the payment and settlement system.
NBFCs must comply with RBI norms, submit periodic returns, maintain AML and KYC compliance, and ensure adherence to reporting obligations.
An NBFC is a company engaged in the business of loans, asset financing, and credit activities but does not hold a banking license.
NBFCs do not have the authority to accept demand deposits, and they are not part of the payment and settlement system like banks.
Yes, 100% Foreign Direct Investment (FDI) is allowed in NBFCs under the automatic route subject to RBI guidelines.
Operating without an RBI license is illegal and may lead to severe penalties, including the closure of operations.
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