Registering a Non-Banking Financial Company (NBFC) in India is a regulated process overseen by the Reserve Bank of India (RBI). An NBFC is a financial institution that offers banking services without holding a banking license. To ensure transparency, financial stability, and credibility, the RBI requires a comprehensive set of documents from any company applying for NBFC registration. Here is a detailed overview of the key documents required for successful registration.
The first and foremost requirement is the Certificate of Incorporation issued by the Registrar of Companies (RoC) under the Companies Act, 2013. Along with this, the Memorandum and Articles of Association (MoA & AoA) of the company must clearly state that the main business objective includes financial services or investment activities. A Board Resolution must also be passed by the company, authorizing the application for NBFC registration and confirming the company’s intent to carry out financial business.
One of the most critical requirements for NBFC registration is proof of Net Owned Funds (NOF). As per RBI regulations, a minimum NOF of ₹2 crore is mandatory for NBFCs (excluding certain categories like microfinance or housing finance companies which have separate criteria). This must be backed by audited financial statements, preferably of the latest financial year, and a banker’s certificate confirming the balance in the company’s account. If the NOF includes funds from shareholders or directors, their contribution must also be verified and documented.
The RBI requires full transparency about the people running the company. Hence, detailed KYC documents of all directors and shareholders must be submitted, including PAN, Aadhaar, passport copies, photographs, and proof of address. In addition, the credit reports (CIBIL or other) of all directors and shareholders are required to confirm that none of them have defaulted on financial obligations. Their educational qualifications and experience in financial services (if applicable) must also be included to demonstrate managerial competency.
A detailed business plan is another essential document. This plan should outline the proposed NBFC’s objectives, target markets, financial projections for at least three years, types of financial products or services to be offered, risk management framework, and compliance strategy. The business plan plays a crucial role in convincing RBI of the sustainability and seriousness of the applicant.
Other important documents include the organizational structure and shareholding pattern, income tax returns of the company and directors, and a statutory auditor’s certificate confirming the compliance of the applicant company with RBI norms and the legitimacy of NOF. If the applicant has group companies, their financial details, business activities, and any intercompany transactions must be disclosed.
Finally, all documents must be submitted online through the COSMOS portal of the RBI. It is also advisable to keep hard copies ready, as RBI may request physical verification or additional information during the review process.
Given the complexity and strict compliance required, seeking assistance from legal or financial consultants experienced in NBFC registration is highly recommended to ensure a smooth and successful application.
