A non-banking financial company requires a certificate of registration from the Reserve Bank of India before it may carry on lending, investment or similar financial activity as its principal business. This is among the most demanding approvals in Indian regulatory practice — it involves a minimum net owned fund, fit-and-proper scrutiny of every promoter and director, and a business plan that the Bank examines seriously.
Who needs this
- Promoters planning a lending, leasing or investment business
- Fintech platforms whose model involves lending from their own book
- Investors acquiring an existing NBFC, which requires prior approval for change in control
- Existing NBFCs facing a compliance or classification question
Documents required
This is the usual list. Depending on your state and your specific facts, an authority may ask for more — we tell you at the scope stage rather than midway through.
- Certificate of incorporation and constitution documents of the company
- Proof of minimum net owned fund, certified by a chartered accountant
- Detailed business plan with three-year financial projections
- Banker's report and credit reports on promoters and directors
- Fit-and-proper declarations and detailed profiles of directors
- KYC and net worth documents for each promoter
How we handle it
1. Feasibility
We assess whether the proposed activity actually requires NBFC registration, which category applies, and whether the promoters meet the fit-and-proper criteria. Some models do not need an NBFC at all.
2. Company and capital
The company is structured with the correct object clause and the net owned fund is put in place and certified.
3. Application
The application is filed on the RBI's COSMOS portal, followed by the physical submission to the regional office.
4. Queries
RBI raises detailed queries. Responding fully and promptly is the difference between an approval and a returned application.
5. Certificate and ongoing compliance
On grant, we set up the returns, prudential norms and reporting the category requires.
Fees and timeline
Change in control or management of an existing NBFC requires prior written approval from RBI. Acquisitions structured without that approval are not merely risky — they are invalid.
We quote after a short conversation rather than publishing a single number, because the honest answer depends on your state, your turnover and your category. Call +91 98999 00300 or send the details through the enquiry form.
Common questions
What is the minimum net owned fund?
It depends on the category of NBFC and has been revised over time. We confirm the current requirement for your category before you commit capital.
How long does the process take?
Considerably longer than most applicants expect. RBI examines these thoroughly and the timeline depends heavily on the quality of the application and the speed of query responses.
Can a foreign investor hold shares in an NBFC?
Foreign investment in NBFCs is permitted subject to the sectoral conditions and reporting requirements under FEMA.
This page is general information, not advice on your facts. Rules, rates and due dates change. Government fees are payable to the concerned authority and are separate from our professional fees.