TLDR: Registering a Non-Banking Financial Company (NBFC) in India is an intricate process that requires adherence to strict regulatory guidelines set by the Reserve Bank of India (RBI). If you’re someone looking to onboard advisors to help with NBFC registration, understanding the online process, timeframes and associated fees is crucial for a seamless and compliant setup. This guide breaks down the NBFC registration process, covering the steps involved, the time required, and the costs you should be aware of.
 

What is NBFC Registration?

An NBFC is a financial institution that provides banking services without meeting the legal definition of a bank. NBFCs offer a variety of financial services like loans, asset financing, and investment management. However, to operate legally in India, NBFCs must be registered with the RBI and comply with its stringent regulations.
 

Why Is NBFC Registration Important?

Registering an NBFC ensures that the company complies with the RBI’s rules, including capital adequacy and financial reporting requirements. This legal recognition not only protects the NBFC but also builds trust with clients and stakeholders. Additionally, registered NBFCs can access a wider range of business opportunities and government schemes designed to promote financial inclusion.
 

Online NBFC Registration: An Overview

The RBI has made the process of registering an NBFC accessible online, streamlining the application and compliance stages. Here’s a detailed look at the time, process and fees involved in registering an NBFC online.
 

1. Time Required for NBFC Registration

The NBFC registration process is detailed and involves several steps, each of which has its own timeline. Typically, the entire process takes anywhere from 4 to 6 months, but the duration can vary based on the following factors:

  • Document Preparation: Preparing all necessary documents and ensuring compliance with RBI requirements can take up to 1-2 months.

  • Application Submission: The online submission process is quick, but the RBI’s review and approval stage can take 3-4 months, as it involves background checks, document verification, and detailed scrutiny.

  • Post-Approval Compliance: After approval, NBFCs must fulfill post-registration requirements, such as appointing a Statutory Auditor, which can add an additional month to the timeline.

CorpZo Insight: To minimize delays, it’s crucial to ensure all documents are accurate and compliant with RBI guidelines before submission. CorpZo offers end-to-end assistance in document preparation, ensuring a faster and smoother registration process.
 

2. Step-by-Step Process for Online NBFC Registration

The online NBFC registration process involves several steps. Here’s a breakdown of the critical stages:
 

Step 1: Establishing a Company

Before applying for NBFC registration, you need to set up a Private Limited Company or Public Limited Company under the Companies Act, 2013. Ensure the company’s objective aligns with NBFC activities like lending, investment, or financial services.

  • Minimum Capital Requirement: Ensure that the company has a minimum Net Owned Fund (NOF) of ₹10 crores, as required by the RBI.

CorpZo Tip: Setting up a company correctly is the foundation for a successful NBFC application. Our experts help you establish a compliant company structure to facilitate the registration process.
 

Step 2: Preparation of Documents

The next step is to prepare all required documents for submission. This includes:

  • Company Incorporation Certificate

  • Memorandum of Association (MOA) and Articles of Association (AOA)

  • Net Owned Fund (NOF) Certificate from a Chartered Accountant

  • Directors’ Profiles and KYC Documents

  • Business plan detailing the proposed NBFC activities and projections for the next 3-5 years.

CorpZo Support: We help you compile, review, and verify all necessary documents, ensuring they meet RBI standards to avoid delays during the verification stage.
 

Step 3: Online Application on RBI's Site

RBI’s platform is used for submitting the NBFC registration application online. Here’s how the process works:

  1. Register the company on the specific portal by providing basic company information.

  2. Upload the required documents, including the NOF certificate, MOA, AOA, business plan, and KYC documents.

  3. Submit the application and pay the application fee (₹3,000). The RBI's platform generates a Company Application Reference Number  for tracking.

CorpZo Insight: The RBI's portal can be technical and complex to navigate. At CorpZo, we handle the entire online application process for you, ensuring all documents are correctly uploaded and tracked.
 

Step 4: RBI Review and Background Verification

Once the application is submitted, the RBI conducts a detailed review, which includes:

  • Verification of Documents: The RBI verifies the authenticity and accuracy of the submitted documents.

  • Background Check: A thorough check is performed on the company’s directors and promoters to ensure compliance with financial regulations and standards.

This process can take 3-4 months, depending on the RBI’s workload and the complexity of the application.

CorpZo Advantage: We stay in touch with the RBI throughout the review process, addressing any queries or concerns they might have to expedite approval.
 

Step 5: Certificate of Registration (CoR)

If the application meets all requirements, the RBI issues a Certificate of Registration (CoR), officially recognizing the company as an NBFC. The NBFC is now legally authorized to operate and provide financial services in India.
 

3. Fees Associated with NBFC Registration

The cost of registering an NBFC includes several components:

  • Company Incorporation Fees: ₹10,000 - ₹20,000 (varies based on the type of company and professional fees).

  • RBI Application Fee: ₹3,000 (paid during online submission through RBI's provided Site).

  • Capital Requirement: The company must have a minimum NOF of ₹10 crores. This fund must be deposited in a bank account and certified by a Chartered Accountant.

  • Professional Fees: Costs associated with hiring consultants or advisors to manage the registration process and ensure compliance (typically ranging from ₹50,000 to ₹1,50,000 based on the service provider and scope of work).

CorpZo Tip: Investing in professional support can save time and reduce the risk of application rejection. CorpZo provides cost-effective packages tailored to different business needs, ensuring transparency and value for money.
 

Common Pitfalls in NBFC Registration and How to Avoid Them

While the process may seem straightforward, many applicants face challenges that delay approval. Here are some common pitfalls:

  • Insufficient Documentation: Errors or incomplete documents can result in application rejection or delay.

  • Lack of Compliance with NOF Requirements: Failing to meet the minimum NOF requirement of ₹10 crores can halt the registration process.

  • Inadequate Business Plan: The RBI scrutinizes business plans closely. A poorly prepared business plan can lead to application rejection.

CorpZo Pro Tip: Work with experts to prepare a comprehensive business plan and ensure all documents are correctly compiled. At CorpZo, we conduct thorough audits before submission, helping you avoid common pitfalls and maximize your chances of success.
 

Why Choose CorpZo for NBFC Registration?

Registering an NBFC requires a deep understanding of RBI regulations, the RBI's platform, and the documentation process. CorpZo provides a comprehensive solution that simplifies the registration journey:

  1. End-to-End Support: From setting up the company to filing the application and obtaining the CoR, we manage the entire process for you.

  2. RBI Compliance Expertise: Our team has extensive experience with RBI regulations, ensuring your application meets all requirements and stands out.

  3. Document Preparation and Verification: We prepare and verify all necessary documents, minimizing the risk of delays and ensuring a smooth approval process.

  4. Post-Registration Assistance: After receiving the CoR, we continue to support your business with compliance management and other regulatory requirements.
     

Conclusion

NBFC registration is a detailed and regulated process that requires precision, compliance, and timely submissions. Understanding the timeframes, costs, and process involved helps ensure that your application progresses smoothly. If you’re looking to onboard advisors to navigate the NBFC registration process, partnering with experts like CorpZo can save you time, reduce risks, and streamline your path to becoming a registered NBFC.

Contact CorpZo today to get expert assistance with your NBFC registration.

Call +91 9999 139 391 or WhatsApp for a free consultation.