Non-Banking Financial Companies (NBFCs) play a vital role in strengthening India’s financial system by providing credit and financial services to individuals, entrepreneurs, MSMEs, and start-ups. NBFC Registration is governed by the Companies Act, 2013, and the RBI Act, 1934, and requires approval from the Reserve Bank of India (RBI).

An NBFC operates similarly to a bank in terms of lending and financial services, but does not hold a banking license. It cannot accept demand deposits like traditional banks, but can engage in various financial activities as permitted by RBI regulations.
 

Our NBFC Registration Services Include:

⇒ End-to-end support for NBFC incorporation

⇒ Assistance in preparing a comprehensive NBFC business plan

⇒ Advisory on business and marketing strategies

⇒ Guidance in meeting RBI compliance requirements

⇒ Support for audit and secretarial compliance

⇒ Consultation on digital financial services marketing
 

What is an NBFC?

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act that provides financial services such as:

⇒ Secured and unsecured loans

⇒ Industrial and commercial loans

⇒ Leasing and hire-purchase

⇒ Investment in shares, stocks, bonds, and debentures

⇒ Insurance and capital market-related activities

⇒ Chit fund and microfinance activities (subject to approval)

NBFCs significantly contribute to credit disbursement in the retail and MSME sectors. They function under strict supervision and regulatory control of the Reserve Bank of India (RBI).
 

Procedure for NBFC Registration

1. Incorporate a Company

Register a company under the Companies Act with the required directors. The company must maintain a minimum Net Owned Fund (NOF) of ₹2 crore (or as prescribed by RBI) and ensure directors have a satisfactory CIBIL record.

2. Prepare and Submit Application

Compile all required documents and submit the online application to the RBI.

3. Submission to RBI Regional Office

Send the physical copy of the application along with supporting documents to the concerned RBI regional office.

4. Grant of Certificate of Registration

After thorough verification and satisfaction of all eligibility conditions, RBI grants the Certificate of Registration, allowing the company to commence NBFC operations.
 

Documents Required for NBFC Registration

⇒ Certificate of Incorporation

⇒ Company PAN and Corporate Identity Number (CIN)

⇒ Certified copy of MOA and AOA

⇒ Detailed company profile and management brochure

⇒ Directors’ profiles duly signed

⇒ CIBIL reports of all directors

⇒ Statutory Auditor’s certificate confirming Net Owned Funds

⇒ Auditor’s certificate stating no public deposits are held

⇒ Board resolution confirming no NBFC activity before RBI approval

⇒ Company bank statements and financial details

⇒ Audited financial statements (if applicable)

⇒Income Tax Returns (if applicable)

⇒ Business plan with financial projections for the next 3 years
 

Benefits of NBFC Registration

⇒ Expands access to financial services for individuals and businesses

⇒ Supports industrial, commercial, and service sector growth

⇒ Flexible interest rate structure (subject to RBI guidelines)

⇒ Strong contribution to MSME and retail credit markets

⇒ Customer-focused financial solutions

⇒ Increased credibility under RBI regulation
 

Society Registration

Society Registration is suitable for individuals who wish to form a non-profit organisation to promote charitable, educational, cultural, or social causes. A registered society operates as a legal entity dedicated to community welfare and non-commercial objectives.
 

Benefits of Society Registration

⇒ Separate legal identity

⇒ Name approval and legal recognition

⇒ Memorandum of Association (MOA) preparation

⇒ Eligibility for Income Tax benefits (subject to approval)

⇒ Simple and streamlined registration process

⇒ Quick incorporation timeline

NBFC Registration is ideal for entrepreneurs entering the financial services sector, while Society Registration is best suited for individuals aiming to work toward social development and community welfare under a structured legal framework.