Detailed Overview
Establish a Legally Compliant Non-Banking Financial Company
A Non-Banking Financial Company (NBFC) is a financial institution that offers banking services (like loans, credit facilities, and investment products) without holding a full banking license. In India, NBFCs are strictly regulated by the Reserve Bank of India (RBI) under the RBI Act, 1934. Registering an NBFC is a complex, high-compliance legal process that requires deep expertise in financial regulations, corporate law, and capital structuring.
Whether you want to start a microfinance institution, an investment company, a fintech lending platform, or an asset finance company, obtaining a Certificate of Registration (CoR) from the RBI is legally mandatory. The foundational requirement is incorporating a Private or Public Limited Company with a minimum Net Owned Fund (NOF) of ₹2 Crores (to be increased to ₹10 Crores by 2027 under new RBI scale-based regulations). Our specialized team of former bank auditors and senior Company Secretaries ensures your application meets the RBI's stringent 'Fit and Proper' criteria for directors.
Why Register as an NBFC?
Fintech startups and lending platforms cannot legally disburse loans using public or private funds without an NBFC license. Operating without one invites severe criminal prosecution and immediate business shutdown by the RBI.
At GST Times, we take the legal complexity out of the picture. Our system reviews your files, coordinates with government registrars, handles all clarifications, and delivers your certificate securely to your dashboard online.
Core Benefits & Advantages
Registering for this compliance/setup unlocks critical legal and commercial opportunities for your brand:
Legal Authority to Lend
An NBFC license grants you the absolute legal authority to operate a lending business, issue credit cards, or manage investment portfolios across India.
Fintech & App Integrations
Payment gateways, CIBIL integration, and App Store approvals for loan apps strictly require an active RBI-issued NBFC Certificate of Registration.
Access to Institutional Credit
Registered NBFCs can legally raise massive capital through debentures, venture capital, and commercial banks to scale their lending books.
High Corporate Valuation
Because RBI licenses are rare and heavily scrutinized, an active, clean NBFC commands a massive premium valuation in the M&A market.
Required Documents Checklist
You only need to upload scan copies or photographs of these basic documents. No physical paperwork is required:
Corporate Pre-requisites
- Certificate of Incorporation of the Private/Public Limited Company.
- MoA and AoA specifically stating 'financial business' as the main object.
- Board Resolution approving the NBFC registration application.
Financial & Director KYC
- Audited Balance Sheets and P&L accounts for the last 3 years.
- Detailed profile and KYC of all directors (to meet 'Fit & Proper' rules).
- Bankers' Report confirming the ₹2 Crore Net Owned Fund (NOF) deposit.
Our Step-by-Step Filing Process
We complete your work in four simple milestones, keeping you informed at every turn:
1
Company Incorporation & NOF Verification
We first incorporate a Pvt/Public Limited Company (if not already done) and assist in structuring the mandatory ₹2 Crore Net Owned Fund via equity.
2
COSMOS Portal Application
Our experts compile the extensive documentation (business plan, director profiles, financial projections) and submit the application on the RBI COSMOS portal.
3
Physical Submission & RBI Scrutiny
A hard copy of the application is submitted to the Regional Office of the RBI. The RBI thoroughly scrutinizes the directors' backgrounds and funding sources.
4
Issuance of CoR
Once the RBI is satisfied with the application and compliance readiness, it issues the official Certificate of Registration (CoR) to commence operations.
Frequently Asked Questions (FAQs)
Got doubts? Here are direct answers from our expert Chartered Accountants:
What is the Net Owned Fund (NOF) requirement?
Currently, the minimum NOF required to apply for an NBFC license is ₹2 Crores. However, under the new Scale-Based Regulatory (SBR) framework, this is gradually being increased to ₹10 Crores by March 2027.
Can an NBFC accept deposits from the public?
Generally, no. A newly registered NBFC is categorized as a Non-Deposit taking NBFC (NBFC-ND). Accepting public deposits requires a specific, much harder-to-get license (NBFC-D) and an investment-grade credit rating.
What is the 'Fit and Proper' criteria for directors?
The RBI strictly evaluates the directors' financial background, educational qualifications, and criminal records. At least 1-2 directors should ideally have extensive senior-level experience in the banking or financial services sector.
Can a foreign company invest in an Indian NBFC?
Yes, 100% Foreign Direct Investment (FDI) is allowed in the NBFC sector under the automatic route, subject to minimum capitalization norms set by the RBI and FEMA compliance.
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