To register a Non-Banking Financial Company (NBFC) in India, the applicant must follow the guidelines set by the Reserve Bank of India (RBI). The process includes several key steps:
1. Incorporate a Company: First, register a private or public limited company under the Companies Act, 2013. The company must have financial activities as its principal business.
2. Meet Capital Requirements: Ensure a minimum Net Owned Fund (NOF) of ₹2 crore (₹10 crore for certain NBFC types like infrastructure finance companies).
3. Open a Bank Account: Deposit the required NOF into a bank account in the company’s name and obtain a banker's certificate confirming the deposit.
4. Prepare Documents: Compile key documents including incorporation certificate, Memorandum and Articles of Association, board resolution, net worth certificate from a CA, income tax PAN, and KYC of directors and shareholders.
5. Apply Online: Submit the
NBFC registration application through RBI’s COSMOS portal and obtain a Company Application Reference Number (CARN).
6. Submit Hard Copies: Send a physical copy of the application and documents to the concerned RBI regional office.
After verification, the RBI may grant a Certificate of Registration, allowing the company to operate as an NBFC.
