Category NBFC Registration

A strong financial sector is important for the growth of any country. When companies have access to money and financial support, they grow faster and help the nation move toward economic progress. In India, the government encourages financial development by allowing different types of financial institutions to operate. One such important part of the Indian financial system is the Non-Banking Financial Company (NBFC).

NBFCs play a big role in offering financial help to people and businesses, especially in areas where banks may not be able to reach. They provide services like loans, investment facilities, retirement plans, asset management, and more. Because of their wide reach and flexible approach, NBFCs support many small businesses, create employment, and help in the overall growth of the Indian economy.

To start and operate an NBFC legally, a company must go through the NBFC Registration process with the Reserve Bank of India (RBI).

Requirements for NBFC Registration in India

To register as an NBFC in India, a company must meet the following requirements:

• The company must be registered under the Companies Act, 2013 or any earlier Companies Act.

• As per RBI’s 2021 guidelines, the company must have a net worth of at least ₹10 crore or more.

• The company must have at least one director with experience in finance or a related field.

• A good CIBIL score is required.

• A certified copy of the company’s Certificate of Incorporation must be submitted.

• The company’s Memorandum of Association must clearly show the financial activities it plans to conduct.

• A director’s certificate showing experience in banking or financial services is required.

Eligibility Criteria for NBFC Registration

To apply for NBFC Registration, a company must also meet these eligibility conditions:

• Must be registered as a private or public limited company.

• Must have a clear 5-year financial plan for its operations.

• Must maintain a strong credit history.

• Must have a minimum net owned fund of ₹2 crore.

• Must show a record of good financial stability.

• Should offer financial services such as lending, investment, leasing, or hire purchase.

• Must not run any unrelated business unless approved by the RBI.

• Should have a qualified and knowledgeable board of directors, including at least one financial expert.

• Must follow all RBI guidelines and rules.

• Must have a properly established registered office in India.

• Must apply with all required documents as per RBI rules.

• In the company’s articles, there should be no restriction on the transfer of shares.

• The company must obtain an NBFC Certificate of Registration to start its operations.

Role of NBFC Registration

NBFC Registration is important because it brings many benefits:

1. Regulatory Compliance

Registration ensures that NBFCs follow RBI rules, maintain transparency, and work responsibly.

2. Consumer Protection

RBI guidelines protect customers from unfair practices and ensure safe financial services.

3. Financial Stability

Registered NBFCs are closely monitored, which helps prevent risks and keeps the financial system stable.

4. Credit Access

NBFCs give loans to individuals and businesses that banks may not support, helping more people access credit.

5. Economic Growth

NBFCs support small businesses, agriculture, housing, and MSMEs, helping the country grow.

6. Market Integrity

Registration ensures NBFCs do not engage in fraud or unfair practices.

7. Risk Control

RBI regulations help NBFCs avoid taking excessive risks.

8. Investor Confidence

A registered NBFC earns trust, attracts investors, and grows faster.

Why Choose Adviso?

NBFC Registration involves many rules, documents, and compliance steps. Without expert help, the process can become difficult and time-consuming. Adviso offers complete support for NBFC Registration, including guidance from experienced lawyers, CAs, and CS professionals. Our team helps you follow every requirement smoothly, avoid mistakes, and get quick approval from the RBI.

With Adviso, your NBFC registration becomes simple, efficient, and fully compliant with all legal guidelines.