How to Get NBFC Registration in India: A Step-by-Step Guide

Non-Banking Financial Companies (NBFCs) are financial institutions that are not banks. They provide a variety of financial services, such as loans, advances, investments, and insurance. In order to operate in India, NBFCs must be registered with the Reserve Bank of India (RBI).

The process of NBFC registration in India is relatively straightforward. The following are the steps involved:

1.     Form a company: The first step is to form a company under the Companies Act, 1956. The company must have a minimum paid-up capital of INR 20 lakhs.

2.     Obtain a certificate of commencement of business: Once the company is formed, it must obtain a certificate of commencement of business from the Registrar of Companies.

3.     Apply for NBFC registration: The next step is to apply for NBFC registration with the RBI. The application can be submitted online or offline.

4.     Submit required documents: Along with the application, the following documents must be submitted to the RBI:

o    Certified copy of the company's certificate of incorporation

o    Memorandum of association and articles of association of the company

o    Net worth certificate of the directors and shareholders of the company

o    Educational qualification certificates of the proposed directors

o    Highest experience certificates of the proposed directors

o    Directors' and shareholders' business profiles

o    Credit report of the directors and shareholders

o    KYC details of the directors and shareholders

o    PAN of the company, GST number, and address proof of the company

o    Bank account details of the company

o    Audited balance sheet of the last 3 years or from the date of incorporation

o    Related party disclosures

o    Income tax returns

o    Banker's report confirming no lien on fixed deposit

5.     Pay the registration fee: The RBI charges a registration fee of INR 1 lakh for NBFC registration.

6.     Obtain NBFC registration certificate: Once the RBI is satisfied with the application, it will issue an NBFC registration certificate.

The process of NBFC registration in India can take up to 3 months. However, it is important to note that the RBI may ask for additional information or clarifications during the process.

Here are some of the benefits of getting NBFC registration in India:

  • It allows you to operate as a legal and regulated financial institution.
  • It gives you access to a wider range of financial products and services.
  • It helps you to build credibility and trust with your customers.
  • It makes it easier to raise capital from investors.

If you are planning to start an NBFC in India, it is important to get NBFC registration from the RBI. This will help you to comply with the regulatory requirements and operate your business smoothly.

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