NBFC Registration with the RBI, Fully Managed by Experts
A Non-Banking Financial Company must obtain a Certificate of Registration from the RBI before it can carry on financial business. We guide you through incorporation, the Net Owned Fund requirement, the application and RBI queries — end to end.
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What Is NBFC Registration?
A plain-language explanation before the details.
An NBFC is a company that does financial business — like lending, investing in shares, or asset finance — but is not a bank. To run one legally you need an RBI Certificate of Registration.
Under Section 45-IA of the Reserve Bank of India Act, 1934, a non-banking financial company cannot commence or carry on the business of a non-banking financial institution without obtaining a Certificate of Registration from the RBI and holding the minimum Net Owned Fund prescribed by the Bank.
The Reserve Bank of India — Department of Regulation / Department of Supervision — grants the Certificate of Registration and regulates NBFCs on an ongoing basis, now under the Scale-Based Regulation (SBR) framework.
A Certificate of Registration continues in force unless it is cancelled or surrendered, subject to the NBFC continuing to meet the principal-business test, Net Owned Fund and ongoing regulatory conditions.
Quick Facts
Is This Service Right for You?
Ideal for
- Fintech and digital-lending businesses planning to lend from their own book
- Promoters setting up a loan / asset-finance company
- Investment companies dealing principally in shares and securities
- Microfinance ventures serving small borrowers
- Group holding structures needing a Core Investment Company
- Businesses whose financial assets and income cross the 50-50 test
You may need this if
- Your company's principal business is financial (lending / investment / asset finance)
- Financial assets are more than 50% of total assets and financial income more than 50% of gross income
- You intend to carry on non-banking financial business for the public
- You need an RBI Certificate of Registration to operate lawfully
- Your existing activity may have crossed into NBFC territory
- You need help meeting and maintaining the Net Owned Fund requirement
Not sure if you need this?
Talk to an Expert →Common Categories of NBFC
NBFCs are classified by activity and, under Scale-Based Regulation, by layer. The right category affects your Net Owned Fund, permitted activities and returns. We help you identify and apply for the correct one.
Investment & Credit Company (NBFC-ICC)
The consolidated category covering asset finance, loan and investment companies — lending and investment in shares / securities.
Infrastructure Finance Company (IFC)
An NBFC deploying a large share of its assets in infrastructure loans, subject to specific net-worth and rating conditions.
Micro Finance Institution (NBFC-MFI)
An NBFC engaged in microfinance, subject to qualifying-asset and conduct norms for micro-loans.
Core Investment Company (CIC)
An NBFC holding investments primarily in group companies; systemically important CICs are separately regulated.
NBFC-Factor
An NBFC whose principal business is the factoring of receivables under the Factoring Regulation Act.
Non-Deposit vs Deposit-Taking
NBFCs are also split into non-deposit-taking (including systemically important, NBFC-ND-SI) and deposit-taking (NBFC-D), with different norms.
Why NBFC Registration Is Required
Carrying on non-banking financial business without RBI registration is prohibited and can attract serious consequences. Registration establishes your company as a regulated financial institution.
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01
It Is Mandatory
Section 45-IA prohibits any company from commencing or carrying on non-banking financial business without a Certificate of Registration from the RBI. Operating without it is an offence.
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02
Operate as a Regulated Lender
A CoR lets your company lawfully lend, invest and provide financial services from its own balance sheet within the RBI framework.
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03
Access Institutional Funding
Banks, investors and lenders generally deal only with a registered NBFC, so registration is often a precondition for raising debt and equity.
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04
Regulatory Credibility
RBI registration signals that your company meets net-worth, fit-and-proper and governance standards — building trust with customers and partners.
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05
Scale With a Clear Framework
Registration brings your business under a defined set of prudential norms and returns, giving a stable base to scale lending operations.
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06
Avoid Penal Consequences
Unregistered financial activity can attract penalties, prosecution and directions to stop business — registering protects the promoters and the company.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- The applicant is a company incorporated under the Companies Act, 2013 (or 1956)
- Minimum Net Owned Fund — indicatively ₹2 crore historically, raised to ₹10 crore for many categories under SBR (subject to prevailing RBI directions)
- The 50-50 principal-business test is met: financial assets over 50% of total assets and financial income over 50% of gross income
- Directors / promoters satisfy the RBI fit-and-proper criteria and have a clean track record
- A credible business plan and, where required, capital contributed from disclosed, tax-paid sources
- The company is not carrying on prohibited activities and has proper governance in place
Everything You Need. One Professional Team.
Category Assessment
Determine whether you need an NBFC licence and the correct category / layer under SBR.
Company & NOF Setup
Guide incorporation (if needed) and structuring capital to meet the Net Owned Fund requirement.
Documentation
Prepare the application, business plan, board resolutions, KYC and fit-and-proper declarations.
COSMOS Application
File the online application on the RBI portal and submit the physical file to the Regional Office.
RBI Query Handling
Respond to RBI clarifications and additional-information requests through to grant of CoR.
Certificate of Registration
Coordinate through to issue of the Certificate of Registration by the RBI.
Policy & Framework Setup
Help put in place required policies — fair practices code, KYC / AML, credit and governance.
Ongoing Returns Support
Support periodic NBS / DNBS returns, CIC / credit-bureau reporting and annual compliance.
What You’ll Receive
Documents Required for NBFC Registration
The RBI reviews the company, its capital, its promoters and its business plan. Keep clear, certified copies ready; the exact set is confirmed against your category and the current RBI checklist.
Company & Incorporation
- Certificate of Incorporation, MOA & AOA (with financial objects)
- Company PAN and latest audited financials
- Board resolution to apply for NBFC registration
- Details of the registered office and place of business
Capital & Net Owned Fund
- Auditor's certificate of Net Owned Fund
- Proof of capital / bank statement evidencing NOF
- Shareholding pattern and source-of-funds details
- Banker's report on the company's account
Directors & Promoters
- PAN, Aadhaar and KYC of all directors / promoters
- Fit-and-proper declarations and CIBIL / credit reports
- Educational / professional and net-worth details
- Detailed business plan and projected financials (typically 3 years)
Net Owned Fund is indicative
NOF has historically been ₹2 crore and has been raised to ₹10 crore for many categories under Scale-Based Regulation. Treat figures as indicative and subject to prevailing RBI directions for your category.
The 50-50 test decides NBFC status
A company is an NBFC if its financial assets exceed 50% of total assets and its income from financial assets exceeds 50% of gross income. Both limbs must be met.
Fit-and-proper promoters
Directors and promoters must meet RBI fit-and-proper criteria, with a clean credit record and disclosed source of funds.
Company first
You must first have a company incorporated under the Companies Act with financial objects in its Memorandum before applying for the CoR.
Don’t have all the documents?
We’ll identify what your case needs →The NBFC Registration Process, Step by Step
From category assessment to the RBI COSMOS application, query handling and grant of the Certificate of Registration.
Assess NBFC status & category
Confirm whether you need a licence, apply the 50-50 test and identify the correct category and layer.
Incorporate & build NOF
Ensure a company with financial objects is in place and structure capital to meet the Net Owned Fund requirement.
Prepare the application file
Draft the business plan, board resolutions, fit-and-proper and KYC documents, and the auditor's NOF certificate.
File on the RBI COSMOS portal
Submit the online application, generate the reference number and file the physical application with the RBI Regional Office.
Respond to RBI queries
Address the RBI's clarifications and requests for additional information and documents.
Grant of Certificate of Registration
On satisfaction of all conditions, the RBI issues the Certificate of Registration to the NBFC.
Set up ongoing compliance
Put policies in place and begin periodic NBS / DNBS returns, credit-bureau reporting and annual filings.
What to Expect on Timelines
| Stage | Expected Time |
|---|---|
| Company setup & NOF structuring | Before application |
| Application preparation (business plan, KYC, NOF certificate) | Case-dependent |
| RBI review & query rounds | As per RBI processing |
| Grant of Certificate of Registration | On satisfaction of conditions |
| Ongoing returns (NBS / DNBS) | Periodic (monthly / quarterly / annual) |
RBI processing time varies with the completeness of the application and the number of query rounds. We do not promise a fixed grant date — the RBI grants the Certificate of Registration only when it is satisfied that all statutory conditions are met.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| Periodic Returns | NBS / DNBS returns to the RBI as applicable to the category · Credit-bureau (CIC) reporting of borrowers · Statutory auditor certificate on NBFC status · Systemically important NBFC returns where applicable |
| Prudential | Maintain minimum Net Owned Fund · Comply with capital adequacy / provisioning norms · Follow the Fair Practices Code and KYC / AML · Board-approved policies and internal controls |
| Annual & Event-Based | Companies Act annual filings (ROC) · Income-tax return and audit · Intimate change of directors / control to RBI · Report material events and changes in business |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Apply the 50-50 test and pick the right category / layer yourself
- Interpret the RBI Master Directions and SBR framework
- Structure and evidence the Net Owned Fund correctly
- Draft a business plan that meets RBI expectations
- Complete the COSMOS application and physical file accurately
- Handle multiple rounds of RBI queries
- Risk rejection or return of the application
With TaxClue
- Expert confirms whether you need a licence and which category fits
- NOF structuring guided to meet the requirement
- Business plan and application prepared to RBI standards
- COSMOS filing and physical submission handled
- RBI queries answered by our team
- Statutory policies set up for you
- Higher-quality application, fewer avoidable delays
Skip the guesswork.
Let an expert handle it →Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
Ongoing Compliance for a Registered NBFC
Periodic Returns
- NBS / DNBS returns to the RBI as applicable to the category
- Credit-bureau (CIC) reporting of borrowers
- Statutory auditor certificate on NBFC status
- Systemically important NBFC returns where applicable
Prudential
- Maintain minimum Net Owned Fund
- Comply with capital adequacy / provisioning norms
- Follow the Fair Practices Code and KYC / AML
- Board-approved policies and internal controls
Annual & Event-Based
- Companies Act annual filings (ROC)
- Income-tax return and audit
- Intimate change of directors / control to RBI
- Report material events and changes in business
Penalties & Consequences
What is at stake if you do not comply
- Carrying on non-banking financial business without RBI registration is an offence
- Falling short of the minimum Net Owned Fund can lead to rejection of the application
- Commencing financial business before the Certificate of Registration is granted is prohibited
- Failing to maintain the 50-50 test, NOF or conditions can lead the RBI to cancel the CoR
- Unregistered financial activity can attract penalties, prosecution and a direction to stop business
Regulatory Updates 2025–26
- 2025: NBFC registration requires a Certificate of Registration from RBI and a minimum Net Owned Fund of ₹10 crore for most new NBFCs.
Why Businesses Choose TaxClue
Specialist Team
NBFC licensing and RBI compliance handled by professionals who do it regularly.
RBI-Standard Applications
Business plans and files prepared to the standard the RBI expects.
Compliance-First
Fit-and-proper, NOF and governance addressed up front to reduce query rounds.
Transparent Fees
A clear, itemised quote upfront — government charges at actuals.
Post-Licence Support
We stay on for returns, policies and ongoing RBI compliance.
One Team
Company law, tax and RBI compliance under one roof.
Your Documents Deserve Professional Care
- Documents handled by professionals under confidentiality
- Access limited to the team working on your file
- Communication over secure digital channels
- Documents retained only as long as needed for compliance
Frequently Asked Questions
What is an NBFC?
Is RBI registration mandatory to run an NBFC?
What is the minimum Net Owned Fund for an NBFC?
What is the 50-50 test?
What are the main categories of NBFC?
Do I need a company before applying?
How is the application filed with the RBI?
How long does NBFC registration take?
What are the fit-and-proper criteria for directors?
What ongoing compliance applies after registration?
Can an NBFC accept public deposits?
What is the minimum capital required for NBFC registration?
How is Net Owned Fund (NOF) calculated?
Can a foreign-owned company register as an NBFC?
How long does the Certificate of Registration remain valid?
What returns must an NBFC file after registration?
Official Sources & Legal References
Every regulatory point on this page is drawn from primary law and official RBI sources. Verify directly:
- RBI — NBFC Master Directions & Scale-Based RegulationRegulatory framework, categories and NOF requirements for NBFCs
- Reserve Bank of India Act, 1934 — Section 45-IARequirement of registration and minimum Net Owned Fund · India Code
- RBI COSMOS — Application PortalOnline portal for filing NBFC registration applications
Related Guides
NBFC Types, Documents & Compliance
Read guide ArticleSmall Finance Bank Registration (RBI)
Read guide ArticleAsset Reconstruction Company (ARC) Registration
Read guide ArticleRBI Integrated Ombudsman Scheme
Read guide ArticleRBI Master Direction Updates 2025-26
Read guide ArticleFDI Downstream Investment Rules
Read guideNBFC Registration Resources — All Free
Register Your NBFC with the RBI, the Right Way
From confirming whether you need a licence to structuring the Net Owned Fund, filing on COSMOS and handling RBI queries — our experts manage the NBFC registration end to end. Free consultation, no obligation.