Online NBFC Registration Services in India

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

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013 that is engaged in the business of providing loans and advances, acquiring shares, stocks, bonds, debentures or other marketable securities issued by the Government, local authorities or other entities, leasing, hire-purchasing, insurance, chit business or other financial activities as specified by the Reserve Bank of India (RBI).

It is important to note that the NBFC does not include any institution whose principal business involves any sort of agriculture activities or industrial activities or purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of any immovable property. 

In order to operate as an NBFC, a company requires NBFC Registration from the Reserve Bank of India (RBI). The registration must be applied for via the RBI Pravaah Portal. For assistance in the NBFC registration process online, you can connect with our NBFC consultants at Registrationwala.

NBFC Registration: Key Highlights at a Glance

Below are the key highlights of NBFC Registration in India at a glance:-

RBI’s 50-50 Test for NBFC Registration

The RBI's 50-50 Test is the foundational criterion used by Reserve Bank of India (RBI) to determine whether a company's principal business is financial in nature. A company is considered to have financial activity as its principal business if:

• Financial assets constitute more than 50% of its total assets (net of intangible assets).

• Income from financial assets constitutes more than 50% of its gross income.

If a company fulfills both these criteria, it may qualify for registration as an NBFC by the RBI, subject to meeting other applicable regulatory requirements. The RBI defines "principal business" to ensure that only companies predominantly engaged in financial activities are registered as NBFCs and regulated and supervised by RBI.

Companies whose principal business is agricultural operations, industrial activity, the purchase and sale of goods, providing services or the purchase, sale or construction of immovable property will not be regulated as NBFCs by RBI even if they carry out financial activities to a limited extent.

NBFCs vs Banks: Key Differences

A Non-Banking Financial Company can lend credit and make investments in the same manner as a bank. However, there are certain differences that differentiate an NBFC from a bank. Some of the differences are given in the table below:-

Is Registration Necessary for all NBFCs?

As per the RBI Act of 1934, any Non-Banking Financial Company (NBFC) cannot commence or resume its business activities of operating a non-banking financial institution without:-

• Obtaining a Certificate of Registration (CoR) from the Reserve Bank of India (RBI), and

• Meeting the Net Owned Funds requirement.

However, there are certain exceptions. To avoid dual regulation, the RBI has exempted some financial institutions that are regulated by other regulatory authorities from obtaining NBFC registration. These include:

Further, under the Reserve Bank of India (Non-Banking Financial Companies - Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, certain Type I NBFCs with assets below Rs. 1,000 crore do not need to obtain RBI registration. However, this exemption is available only if they do not deal directly with customers, do not raise public funds and meet the conditions and disclosure requirements prescribed by the central bank.

Types of NBFCs

The RBI classifies NBFCs into different types based on the nature of their principal business and activities:-

What are Eligibility Criteria For RBI NBFC Registration?

The applicant must be a company incorporated under the Companies Act and intending to commence the business of a non-banking financial institution as defined under the RBI Act, 1934. To be eligible for NBFC Registration, the company should comply with the following:-

• It should meet the minimum Net Owned Fund (NOF) requirement prescribed by the RBI.

• The directors and promoters should satisfy RBI Fit and Proper Criteria.

• The applicant company should have the necessary infrastructure, management and business plan to carry out NBFC business.

• It should comply with all other eligibility conditions and guidelines prescribed by the RBI.

NBFC Registration Process

The applicant company can initiate the NBFC registration process in the following manner:

Actions against Operational Unregistered NBFCs

It is illegal for any unincorporated financial entity to falsely claim that it is an NBFC regulated by the Reserve Bank of India (RBI) to mislead the public into collecting deposits. 

Such entities may face action under the Bharatiya Nyaya Sanhita, 2023, the RBI Act, 1934 and other applicable laws. Information about such entities may be reported to the nearest office of the RBI and the police, so that the necessary action can be taken against them. 

Documents Checklist for NBFC Registration

Below is an indicative list of the documents required to be submitted along with the application for NBFC Registration:-

• Certified copy of the CoI (Certificate of Incorporation) of the applicant company

• Certified copy of the CoCoB (Certificate of Commencement of Business) in case the applicant company is a PLC (Public Limited Company).

• Certified copies of the extract of the main objective clause in the Memorandum of Association relating to the financial business of the proposed NBFC.

• Resolution of the Board of Directors stating the following:

• The company is not carrying on any NBFC activity or has stopped any NBFC activity and will not carry on or start the same before getting license registration from the RBI.

• The company has not accepted any public deposit, in the past and does not hold any public deposit as of the date, and will not accept the same in the future without the prior approval of the Reserve Bank of India

• The UIBs in the group where the director holds a substantial interest or otherwise has not accepted any public deposit in the past and does not hold any public deposit as of the date and will not accept the same in future

• The company has formulated a “Fair Practices Code” as per the RBI Guidelines

• Copy of Fixed Deposit receipt & bankers certificate of no lien indicating balances in support of Net Owned Funds (NOF).

• For companies already in existence, the audited balance sheet and Profit & Loss account along with directors & auditors report or for the entire period the company is in existence, or for the last three years, whichever is less should be submitted.

• Copy of the certificate of highest educational and professional qualification in respect of all the directors.

• Copy of experience certificate, if any, in the Financial Services Sector (including Banking Sector) in respect of all the directors.

• Banker’s reports in respect of the applicant company, its group/subsidiary/associate/holding company/related parties, and directors of the applicant company having substantial interest in other companies. The Banker’s report should be about the dealings of these entities with these bankers as a depositing entity or a borrowing entity. The applicant has to provide bankers' reports from all the bankers of each of these entities and provide the report for all the entities. The details of deposits and loan balances as on the date of application and the conduct of the account should be specified.

Our Assistance to get the NBFC Registration in India

Registrationwala helps companies obtain RBI licenses and comply with various RBI regulatory requirements. One of the key services we provide is NBFC Registration. 

Our team can assist you with NBFC registration for your business by providing the following services:-

• Helping you collect and prepare the necessary documents.

• Filing NBFC registration application with RBI on your behalf.

• Following up with RBI and resolving any queries or discrepancies during the application process.

• Delivering the NBFC Registration Certificate to your doorstep.

So, get in touch with us if you want to obtain NBFC registration for your company in a timely and cost-effective manner.

Frequently Asked Questions (FAQs)