Overview
NBFC Registration is mandatory for entities engaged in financial activities such as lending, investment, asset financing, leasing, and other non-banking financial services. NBFC stands for Non-Banking Financial Company, and such entities are regulated by the Reserve Bank of India (RBI) under the RBI Act, 1934.
NBFCs play a critical role in India’s financial ecosystem by providing credit and financial services where traditional banks may not reach. However, due to the sensitive nature of financial operations, RBI strictly regulates NBFCs. At Adviso Compliance, we provide end-to-end NBFC registration services with expert guidance, RBI-compliant documentation, and smooth approval handling.
What is an NBFC?
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013, engaged in financial activities such as:
Loans and advances
Acquisition of shares, stocks, bonds, debentures
Leasing and hire-purchase
Investment and asset financing
NBFCs cannot accept demand deposits like banks but can provide various financial services subject to RBI regulations.
Who Needs NBFC Registration?
NBFC registration is required for businesses involved in:
Lending and loan services
Investment and financing companies
Asset finance companies
Microfinance institutions
Housing finance activities (subject to classification)
Fintech companies offering financial products
Credit and NBFC-based platforms
Any company carrying out financial activity as its principal business must obtain RBI registration.
Why NBFC Registration is Important
NBFC registration is crucial because it:
Is legally mandatory for financial operations
Provides RBI recognition and credibility
Builds trust among customers and investors
Enables lawful lending and investment activities
Prevents penalties and regulatory action
Supports long-term business sustainability
Operating as an NBFC without RBI approval is a serious offence.
Types of NBFCs
NBFCs are classified by RBI based on activity and size:
Asset Finance Company (AFC)
Finances physical assets such as machinery, vehicles, and equipment.
Investment Company (IC)
Engages in acquisition of securities and investments.
Loan Company (LC)
Provides loans and advances not related to asset financing.
Microfinance Institution (NBFC-MFI)
Provides micro-loans to low-income groups.
NBFC-ICC
Investment and credit company combining lending and investment.
Each category has specific compliance requirements.
Eligibility Criteria for NBFC Registration
To register as an NBFC, the applicant must:
Be a company registered under Companies Act, 2013
Have minimum Net Owned Fund (NOF) of ₹2 crore
Have a sound financial structure
Follow fair practice and governance norms
Appoint qualified directors and management
RBI carefully evaluates eligibility before granting approval.
Documents Required for NBFC Registration
NBFC registration requires detailed documentation, including:
Certificate of incorporation
Memorandum & Articles of Association
Net owned fund certificate
Audited financial statements
Directors’ KYC documents
Business plan and financial projections
Banker’s report
Board resolutions
Credit policy and risk framework
Our experts ensure RBI-compliant documentation.
NBFC Registration Process
At Adviso Compliance, we follow a structured RBI-aligned process:
Step 1: Eligibility & Feasibility Assessment
We assess NOF, business model, and RBI eligibility.
Step 2: Company Structuring
We assist with company incorporation or restructuring if required.
Step 3: Documentation Preparation
All RBI-mandated documents and policies are prepared.
Step 4: Online Application Filing
Application is filed on the RBI COSMOS portal.
Step 5: RBI Scrutiny & Clarifications
RBI reviews application and may seek clarifications.
Step 6: RBI Certificate of Registration (CoR)
Upon approval, RBI issues NBFC registration certificate.
Timeline for NBFC Registration
NBFC registration generally takes 3 to 6 months, depending on:
RBI scrutiny
Quality of documentation
Clarifications and responses
We ensure proactive follow-ups to avoid delays.
Post-Registration Compliance for NBFCs
After registration, NBFCs must comply with:
RBI reporting and returns
Fair practices code
KYC and AML guidelines
Statutory audits
Minimum capital maintenance
Periodic inspections
Ongoing compliance is critical for NBFC operations.
Common Mistakes in NBFC Registration
Applications often get delayed due to:
Inadequate NOF
Weak business plan
Poor documentation
Unqualified directors
Non-compliance with RBI norms
With Adviso Compliance, these risks are minimized.
Penalties for Operating Without NBFC Registration
Operating without RBI approval may result in:
Heavy monetary penalties
Criminal proceedings
Forced shutdown of operations
Freezing of bank accounts
Proper registration is essential before starting operations.
Why Choose Adviso Compliance for NBFC Registration?
Experienced RBI compliance professionals
End-to-end NBFC advisory
RBI-compliant documentation
Regular follow-ups with RBI
Transparent pricing
PAN-India service support
We also assist with post-registration RBI compliance.
FAQs – NBFC Registration
Yes, lending as a principal business requires RBI registration.
Minimum Net Owned Fund required is ₹2 crore.
Typically 3–6 months, depending on RBI review.
Yes, if eligibility criteria and capital requirements are met.
No, but regular compliance and reporting are mandatory.