In today’s dynamic financial world, Non-Banking Financial Company (NBFC) is one such name that is running the dreams of small and large entrepreneurs into reality. But understanding the process of NBFC Registration in India and completing it successfully is no easy task!

Here Company Registration Online will become your trusted partner, who will make every step of Registration simple, fast, and easy. In this article, we will tell you about every aspect of NBFC Registration – Suitable, Process, Documents, Challenges, and Solutions in complete guide. 

So, if you are dreaming of starting your own financial business, then this article is a game-changer for you!

Let’s get started!

What is NBFC Registration in India?

A Non-Banking Financial Company (NBFC) is a company that provides financial services like Loans, Advances, Investments, Leasing, Hire-Purchase, and Chit Funds. But it is different from traditional banks as it does not have a banking license. The role of NBFCs is very crucial in India’s financial ecosystem as they provide credit where banks can not reach, like rural areas or small businesses. 

These companies are regulated under the Reserve Bank of India (RBI) and need a certificate of registration from RBI to operate. Basically, if you want to start your business in financial services without a full banking license, then NBFC is your perfect choice!

Types of NBFC Registration in India – Which One is Right for You?

There are many types of NBFC Registration, and you have to choose according to your business model. 

Here are some popular categories:

Asset Finance Company: These companies provide finance for machinery, vehicles, or equipment.

Loan Company: Best option for personal or business loans.

Investment Company: For investing in shares, stocks, and securities.

Infrastructure Finance Company: Long-term loans for infrastructure projects.

Micro Finance Institution: Micro-loans for rural and underprivileged areas.

Core Investment Company: Investment in shares and securities of group companies.

Each category has its own specific requirements, like minimum Net Owned Funds (NOF) or asset allocation rules. We are here to help you choose the right NBFC type as per your business goals and complete the registration process easily.

The Benefits of NBFC Registration Online in India

In today’s digital era, NBFC Registration in India has changed the game for entrepreneurs. This process is not only time-saving but also provides many benefits:

Fast Processing: With online application you can start the Company Registration Process in weeks, unlike traditional methods which take months.

Flexibility: NBFC banks have rare regulations in their businesses, which means you can offer customized financial products to your customers.

Financial Inclusion: NBFC extend credit to people who are unbanked, like small entrepreneurs and rural customers.

High ROI Potential: The CAGR (Compound Annual Growth Rate) of the NBFC sector is estimated to grow, which means it is a profitable venture.

But you will get these benefits only when your registration process is completed correctly. Here we give you expert guidance and full support so that there is no break in your journey.

Online NBFC Registration Process: Your Roadmap!

The process of Online Business Registration may seem a bit complex, but we will break it down into simple steps:

Company Incorporation: First you have to register your company under the Companies Act, 2013. It can be a private or public limited company.

Minimum Net Owned Funds: You should have a minimum NOF of Rs2 Cr. (for some NBFCs like IFC it can be up to Rs300 Cr.)

Bank Account Setup: The NOF has to be deposited in a bank account and proof of the same has to be given to the RBI.

Business Plan: Create a detailed 5-year business plan that outlines your financial projections, target markets, and operational strategies.

Online Application: Create an account on RBI’s COSMOS Portal and fill and submit Form NBS-1.

Document Submission: Upload required documents like Certificate of Incorporation, PAN, Audited Financials, and Directors’ profiles.

CARN Number: Once the application is submitted a Company Application Reference Number will be generated.

Hard Copy Submission: Along with the online application, the hard copy also has to be submitted to the regional office of RBI.

RBI Investigation: RBI will review your application and contact you if any clarification is required.

License Grant: If everything is perfect, RBI will issue you an NBFC license.

This process can seem a bit huge, but our experts manage every step for you, from documentation to RBI follow-ups.

Clients Problems and Our Solutions!

Clients face many challenges during registration. Here are some common problems and their solutions:

Problem

Complex Documentations: Clients often get confused by documents such as audited financials or board resolutions.

Solution: Our experts provide you with a complete document checklist and ensure that everything is a per RBI guidelines.

Problem

RBI Rejections: Incomplete applications or wrong information may lead to rejection of the RBI application.

Solution: We check your application thoroughly and do regular follow-up with RBI.

Problem

High Cost: Government fees (approx Rs7 lakh) and professional fees (approx Rs9 lakh) may seem a little costly.

Solution: We offer affordable packages that fit in your budget.

Problem

Time Delays: The process may get delayed due to name conflicts or missing documents.

Solution: We provide fast-track services so that your registration is completed quickly.

Problem

Lack of Finance Experience: 1/3rd directors need to have a finance background, which is an issue for many clients.

Solution: We guide you on how to appoint experienced directors.

There is one solution to all these problems – work with Company Registration Online and make your NBFC Registration an easy journey!

What Documents Are Required | Get Everything Ready!

For Registration you need to submit a detailed set of documents. Here is an indicative checklist:

  • Certificate of Incorporation
  • Company’s PAN and CIN
  • Memorandum of Association and Articles of Association
  • Audited financial statements (last 3 years, if applicable)
  • Board resolutions approving NBFC application and Fair Practices Code
  • Directors’ profiles, including qualifications and experience
  • Bankers’ report showing NOF deposit 
  • Statutory Auditor’s Certificate confirming NOF and no public deposits
  • Detailed 5 year business plan
  • CIBIL reports of company, directors and shareholders
  • FEMA compliance proof (if foreign investment involved)

This list is really long, but don’t worry! We will help you arrange every document properly so that your application is 100% complete and error-free.

NBFC vs Banks: Which is Better for Your Business?

There are some key differences between NBFC and Banks that you need to understand:

Demand Deposits: Banks offer savings and current accounts, not NBFC.

Cheque Issuance: NBFC can’t issue any checks.

Deposit Insurance: Bank deposits are insured by the DICGC, NBFC are not.

Regulations: Regulations for NBFCs are comparatively lighter than those for banks.

Loan Recovery: NBFCs can recover loans quickly through legal actions like asset attachment.

If you want to offer flexible financial services without heavy banking regulations, then NBFC is perfect for you.

Post-Registration Compliances – What After NBFC License?

Even after getting the NBFC License, you have to follow the guidelines of RBI:

Annual Returns: Submit Income Tax Returns, ROC Returns, and NBS returns. 

Audits: Conduct statutory and tax audits regularly.

Liquid Assets: Maintain 15% of public deposits in liquid assets.

Credit Rating: Get your credit rating updated every 6 months.

KYC Forms: Follow strict KYC policies for customer verification.

Non-compliance may lead to cancellation of your license, hence we provide you full support for Post-Registration compliances as well.

Why Choose Us?

Now the question is – Why choose us online among so many consultants in the market?

Here are some reasons:

Expert Guidance: 10+ years of experience and 100% RBI approval ratio.

Full Support: From company incorporation to license grant, we cover every step.

Affordable Pricing: Budget-Friendly Packages without hidden costs.

Fast-Track Services: Promise to complete registration in a few days.

Client-Centric Approach: Customized solutions based on your needs.

We are not just consultants, we are your business partners who help make your dreams a reality.

Ready to Start Your NBFC Journey? Let’s Do This!

NBFC Registration is a challenging but rewarding process that can turn your financial business dreams into reality. But you don’t have to go through this journey alone – Company Registration Online is your trusted partner who is with you every step of the way. From company incorporation to RBI license grant, we ensure that your process is easy, fast and stress-free.

So, what are you waiting for?

Call us now or get started. Your finances are just one registration door away!