💰 Start a Financial Business with NBFC Registration

 

Do you want to start a lending, investment, or financial services business in India? A Non-Banking Financial Company (NBFC) allows you to offer loans, credit facilities, investments, hire-purchase, and asset financing services — without becoming a bank.

At KLS Advisors, we specialize in end-to-end NBFC Registration and RBI Compliance Support. Our experienced Chartered Accountants and legal professionals ensure your NBFC is registered legally, efficiently, and fully compliant with RBI norms.

 

What is an NBFC (Non-Banking Financial Company)?

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 that offers financial services like loans, investments, leasing, and asset financing. Unlike banks, NBFCs cannot accept demand deposits but play a crucial role in providing credit to individuals and small businesses.

NBFCs are regulated by the Reserve Bank of India (RBI) under the RBI Act, 1934 and must obtain an RBI license before commencing operations.

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Why Register an NBFC?

Registering as an NBFC opens up several opportunities for businesses and entrepreneurs in the finance sector. Here are the main reasons why NBFC registration is beneficial:

1. ✅ Legal recognition – Operate legally under RBI supervision.
2. 💼 Access to funding – Easier to raise funds from investors.
3. 🏦 Business diversification – Offer loans, credit, leasing, and investment services.
4. 📈 Higher credibility – Gain customer trust through RBI certification.
5. 🔒 Regulatory protection – Operate within RBI-approved financial frameworks.

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Types of NBFCs in India

NBFCs are classified based on their business activities and liabilities. Below are the major types:

 

1️⃣ Deposit Accepting NBFCs

 

These NBFCs accept deposits and lend funds. They are strictly regulated by RBI and must meet capital adequacy and reserve requirements.

 

2️⃣ Non-Deposit Accepting NBFCs

 

These NBFCs do not accept deposits but provide loans, leasing, or investment services.

 

3️⃣ Investment and Credit Company (NBFC-ICC)

 

Engaged in providing loans, acquisition of securities, and financial leasing.

 

4️⃣ Asset Finance Company (AFC)

 

Specializes in financing physical assets such as automobiles, machinery, and equipment.

 

5️⃣ Infrastructure Finance Company (IFC)

 

Focuses on lending for infrastructure projects like power, telecom, and roads.

 

6️⃣ Micro Finance Institution (NBFC-MFI)

 

Provides small loans to low-income individuals or groups.

 

7️⃣ Mortgage Guarantee Company

 

Engages in providing mortgage guarantee services.

 

8️⃣ Core Investment Company (CIC)

 

Holds shares and securities of group companies for management and investment.

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Eligibility Criteria for NBFC Registration

To register as an NBFC with RBI, you must meet specific eligibility requirements:

• The company must be registered under the Companies Act, 2013.
• Minimum Net Owned Fund (NOF) of ₹10 crore (as per recent RBI guidelines).
• The company’s primary business must involve financial activities (more than 50% of total assets and income).
• Directors and promoters must have a clean financial background and experience in finance.
• The company must comply with RBI fit and proper criteria for directors.

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Documents Required for NBFC Registration

Before applying to RBI, you must prepare the following documents:

1. Certificate of Incorporation (CIN)
2. Memorandum of Association (MoA) & Articles of Association (AoA)
3. Net worth certificate from a Chartered Accountant
4. Audited balance sheets for the last three years (if applicable)
5. Bank account statement showing the Net Owned Fund (NOF)
6. Board resolution declaring intent to operate as an NBFC
7. Details of directors and shareholders
8. PAN, Aadhaar, and ID proofs of directors
9. Business plan and projected financial statements
10. Copy of educational and professional qualifications of promoters

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Step-by-Step Process for NBFC Registration

At KLS Advisors, we follow a systematic approach to ensure smooth and compliant NBFC registration with RBI.

 

Step 1: Incorporate the Company

 

Register your business as a Private Limited Company or Public Limited Company under the Companies Act, 2013.

 

Step 2: Arrange the Minimum Net Owned Fund (NOF)

 

Deposit a minimum of ₹10 crore in the company’s bank account as per RBI’s latest guidelines.

 

Step 3: Prepare Documentation

 

Compile all necessary documents, including the business plan, MoA, AoA, and KYC details of promoters.

 

Step 4: Apply Online via RBI COSMOS Portal

 

Submit your NBFC application online through the RBI COSMOS Portal along with required attachments.

 

Step 5: Submit a Hard Copy to RBI Regional Office

 

After online submission, send a physical copy of your application and documents to the nearest RBI Regional Office.

 

Step 6: RBI Review & Due Diligence

 

RBI evaluates your application, background of promoters, and financial capability.

 

Step 7: RBI License Approval

 

Once the verification process is successful, RBI issues a Certificate of Registration (CoR) — allowing you to operate as an NBFC in India.

 

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How KLS Advisors Helps with NBFC Registration

At klsadvisors.in, we specialize in providing end-to-end NBFC registration and compliance services. Our team ensures your application meets all RBI norms and helps you avoid costly delays or rejections.

 

Our NBFC Registration Services Include:

 

• Company Incorporation Assistance
• RBI Application Preparation
• Business Plan & Financial Projection Drafting
• Net Owned Fund (NOF) Certification Support
• RBI Liaison & Follow-Up
• Legal & Compliance Advisory
• Post-Registration RBI Compliance

We make the NBFC registration process simple, transparent, and result-oriented — saving you time and effort.

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RBI Compliance After NBFC Registration

Once you obtain your NBFC license, maintaining compliance with RBI regulations is crucial. KLS Advisors provides ongoing support for:

• Annual RBI returns filing
• Statutory audit and financial reporting
• Net Owned Fund (NOF) compliance
• Corporate governance and board meeting support
• Regular policy drafting (KYC, Fair Practices, Risk Management)
• RBI notifications and circular updates

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Why Choose KLS Advisors for NBFC Registration?

• 🧾 RBI Registration Expertise: Over a decade of experience in financial compliance.
• 💼 End-to-End Solutions: From company incorporation to RBI approval.
• ⚡ Quick Processing: Fast, accurate documentation and submission.
• 📊 Tailored Strategy: Customized financial business plan for every client.
• 🧠 Expert Consultants: Chartered accountants, legal experts, and financial advisors under one roof.
• 📍 Pan India Support: Serving clients across Delhi, Gurgaon, Mumbai, Bangalore, and other cities.

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Timeline for NBFC Registration

The complete NBFC registration process generally takes around 90–120 working days, depending on documentation and RBI’s processing speed.

Stage	Process	Estimated Duration
Company Incorporation	Register with MCA	7–10 Days
NOF Deposit & Document Preparation	Fund transfer and documentation	15–20 Days
Application Submission	Through RBI COSMOS Portal	5 Days
RBI Verification & Approval	Due diligence and background checks	60–90 Days
Total Time		3–4 Months

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Post-Registration Services by KLS Advisors

Our support doesn’t end with your NBFC registration. We provide complete post-registration services, including:

• RBI reporting and compliance
• Financial and operational advisory
• Loan policy formulation
• Accounting and taxation services
• Regular audits and RBI updates

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Frequently Asked Questions (FAQs)

Q1. What is the minimum capital requirement for NBFC registration? A minimum Net Owned Fund (NOF) of ₹10 crore is required as per the latest RBI guidelines.

Q2. Can foreign investors register an NBFC in India? Yes, foreign investors can set up an NBFC through the Foreign Direct Investment (FDI) route under RBI approval.

Q3. How long does it take to get NBFC registration from RBI? It usually takes around 3 to 4 months after submission of complete documents.

Q4. Can an existing company apply for NBFC registration? Yes, an existing registered company can apply for NBFC registration if it meets RBI’s financial and operational requirements.

Q5. What is the difference between an NBFC and a bank? NBFCs cannot accept demand deposits and do not form part of the payment and settlement system like banks.

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Get Started with NBFC Registration Today

Ready to start your Non-Banking Finance Company? Let KLS Advisors guide you through every step of the process — from business planning to RBI approval.

 

📞 Call us: +91-XXXXXXXXXX 📧 Email: Info@klsadvisors.in 🌐 Visit: www.klsadvisors.in

 

At KLS Advisors, we make NBFC registration simple, compliant, and future-ready. Build your financial brand with experts who understand your vision.