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NBFC Company Registration in India

A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 2013. It is engaged in the business of loans and advances, acquisition of shares, stock, bonds, hire-purchase. NBFC are regulated by RBI and RBI permission is must to start NBFC business. As per the RBI guidelines, the net owned funds of the NBFC should be Rs. 2 Crores. An NBFC cannot indulge Primarily in Agricultural, Industrial Activity, Sale-Purchase, Construction of Immovable Property. Foreign Investment is allowed up to 100 %.

Types of NBFC Companies in India:

  • Asset Finance Company: Principal business is to finance physical assets such as automobiles, tractors, lathe machines, cranes, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines. Ex: Tayota Financial Services India Limited.

  • Investment Company: Principal business is of acquisition of securities. Ex: Aditya Birla Capital Limited, GMR Airports Limited.

  • Loan Company: Principal business is to provide finance by giving loans or advances. Ex: Bharat Financial Inclusion Limited.

  • Infrastructure Finance Company: Pricipal business is to provide infrastructural loans. Ex: L & T Infrastructure Finance Company Ltd.

  • Infrastructure Debt Fund: Pricipal business is to facilitate the flow of long term debt into infrastructural projects. Ex: L & T Infra Debt Fund Limited.

  • NBFC-Fators: Pricipal business is to do the factoring. Ex: Canbank Factors Limited, IFCI Factors Ltd.

  • Gold Loan Company: Pricipal business is to provide loan againest gold. Ex: Muthoot Finance, Manapuram Finance.

  • Account Aggrigators: Pricipal business is take business of account aggrigation for a fee. Ex; Finsec AA Solutions Private Limited.

  • Residuary Non-Banking Companies: Pricipal business is of to receive deposits. Ex: Fullerton India Credit Company Limited.

Minimum Requirements for NBFC Company Registration

Directors Two Directors
Shareholders Two Shareholders
Authorised Share Capital Rs.2 Crores
Paidup Share Capital Rs.2 Crores
  • Two directors and Two shareholders are rquired. The directors and shareholders may be the same persons. They should be majors. The director must be an Individual whereas the shareholder may be the body corporate. One of the directors must be resident Indian.
  • Authorised Share Capital is the amount up to which, you can invest in the company as share capital.
  • Paidup Share Capital is the amount up to which, you can deposit in the Company's Bank Account towards Share Capital.
  • NBFC Company to ensure: Every NBFC company must take RBI license to carry on the NBFC Business in India. Every NBFC company must get the net owned funds of Rs.200 lakhs to apply for RBI License.

Documents Required for NBFC Company Registration

  • A

    Directors Documents

    1. Directors PAN
    2. Directors ID Proofs
      Aadhaar Card or Voter ID or Passport or Driver's License
    3. Directors Address Proofs:
      Latest one month Savings Bank statement or
      Latest Telephone Bill on his own name or
      Latest Moblie Bill on his name or
      Latest Power Bill on his own name.
    4. Directors latest passport size photograph
    5. Directors Email ids
    6. Directors Mobile Numbers linked with their Aadhar
    7. Incase of Foreign direcrtors, International Passport is mandatory
  • B

    Company Documents

    1. Registered Office Address Proof: Latest Power Bill
    2. No-objection letter from the Landlord.
    3. Rental Agreement from the landlord if the premises are rented.
    4. Company email id.

How to Register a NBFC Company - NBFC Company Registration Process

Now the NBFC Company can be registered simply in 3 Steps. Below is the 3 step NBFC Company Registration process.
  • 1

    Digital Signature Certificates

    Through eMudhra - One Hour Job

    NBFC Company registration in India is entirely online. To register a Company, the Shareholders of the Company have to sign documents digitally using Class-III Digital Signature Certificate (DSC). We will apply Class-III DSCs through eMudhra or other Digital Signature Certificate provider Online. We will attest and submit your documents with eMudhra or other Digital Signature Certificate provider and get your DSCs approved and download the same for signing purpose. Apart from Shareholders, a practicing professional such as Company Secretary or Chartered Accountant has to mandatorily digitally sign and attest the documents to get your Company Incorporated. We also get this done with our associated CA/CS professionals.

  • 2


    Through MCA Portal - 5 to 7 Days

    Once the DSCs are approved, we will then draft the By-Laws and Articles of the Company and prepare the Company Incorporation documents (ie. eSpice+ PartB, eSpice MOA, eSpice AOA, Form DIR-2, Form INC-9, eAGILE Form, Directors KYC documents, NOC and other declarations as may be required) and once you give confirmation from your end to upload with the MCA, we will do that by paying requisite challan amount online.

  • 3

    Certificate of Registration

    Through eMail - 1 Day

    Once we upload and pay the incorporation challan amount to MCA, the Registrar of Companies will go through your application and after due scrutiny, approves the same and issues you the Certificate of Incorporation online through your registered email address.

  • 4

    RBI License

    Through RBI - 3 months

    Once the company is incorporated, open bank account and deposit the share capital amount in the bank and issue share certificates to the shareholders and apply for NBFC License with the Reserve Bank of India (RBI). You can commence the operations of the company once you get NBFC License from RBI.

What All You Get

Certificate of Incorporation (CIN) Memorandum of Association (MOA)
Articles of Association (AOA) Company PAN & TAN
Digital Signature Certificates (DSC) Director Identification Numbers (DIN)
GST Registration (GSTIN) MSME Registration (UDYAM)
PF Registration ESI Registration
PT Registration* Shops & Establishment Registration**
GST Software Share Certificates

* PT Registration is available in the states of Maharashtra, Karnataka & West Bengal only

** Shops & Establishment Registration is available in the state of Delhi only

Bank Account, Other Licenses & Compliance:

Company Bank Account Opening:

Now, the Ministry of Corporate Affairs (MCA) is giving automatic Company Bank Account along with the Certificate of Incorporation in any one of the following banks (ie. Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, State Bank of India, Union Bank of India, IndusInd Bank or Axis Bank). You have to select any one of the bank as listed and this is mandatory. If you do not wish to open bank accounts in either of these banks, you can open your bank account separately once you get the Certificate of Registration and other incorporation documents such as MOA, AOA and Company PAN. No amount is required to get the bank account opened in these banks. Once you get all documents, you can then submit KYC with the bank and deposit the Share Capital amount.

Company PAN & TAN:

The Company PAN & TAN will also be generated simultaneously along with the Certificate of Incorporation. You are not required to apply for it separately. You will only get password protected ePAN & eTAN at the time of Company Incorporation and if you want physical PAN & TAN, again you need to separately apply for it by paying the application fee at PAN application center or online. This ePAN & eTAN are sufficient to get other supporting licenses and run your business. The password to open ePAN is the date of registration and the PIN code of the Company Registered office for eTAN.

RBI License

As per Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can commence or carry on business of a non-banking financial institution without obtaining a certificate of registration from the Bank and without having a Net Owned Funds of ₹ Two crore. However, in terms of the powers given to the Bank, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI ie. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, Nidhi companies as notified under the Companies Act, 2013, Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982,Housing Finance Companies regulated by National Housing Bank, Stock Exchange or a Mutual Benefit company.

GST Registration:

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees*:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees**.

* This limit is increased to Rs. 40 Lakhs w.e.f 1st April 2019 for all states except the State of Telangana. Special category states ie. Jammu and Kashmir, Ladakh and Assam also opted Rs.40 lakhs limit.

** This limit is increased to Rs. 20 Lakhs w.e.f 1st April 2019 for Special Category States.

We help registering your business under GST by making application online subsequent to the business formation. This GST Registration in India is online and subject to approval with the GST Officer. Normally, with in 4 to 5 days, you will get your GSTIN and sometimes it may be delayed due to various reasons.

Other Licenses:

Subsequent upon your Company Registration, you need to apply for certain other licenses such as (ie. MSME Registration, Import Export Code (IEC), Shops & Establishments Registration, Professional Tax Registration (PT), FSSAI License, Local Trade License etc. We help you get these licenses at an affordable cost.


Once your register your Company, you need to file certain periodic documents with the Registrar of Companies, GST department, Income Tax Department and Other Statutory Department online by paying requisite fee. Apart from filing documents, you need to maintain certain records, registers and maintain books of accounts. You need to prepare the Company financials such as Profit & Loss Account, Balance Sheet, Schedules to Accounts, Notes to Accounts, Directors Report etc. You also need to prepare resolutions and minutes of meetings of the board of directors and members of the Company. Our team of experts will assist you in getting all these compliances done at an affordable cost.

Fund Raising & Tax Planning:

Our team of experienced Chartered Accountants & Company Secretaries will help you get funds to run your business by preparing project reports, business plans, term sheets & Share Purchase Agreements etc. We also help you pay less tax to the government through a proper tax planning.

RBI Returns

Returns to be submitted by deposit taking NBFCs:
Quarterly Returns on deposits in First Schedule.
Quarterly return on Prudential Norms is required to be submitted by NBFC accepting public deposits.
Quarterly return on Liquid Assets by deposit taking NBFC.
Annual return of critical parameters by a rejected company holding public deposits.
Monthly return on exposure to capital market by deposit taking NBFC with total assets of ₹ 100 crore and above.
Half-yearly ALM Return
Half-yearly ALM return by NBFC holding public deposits of more than ₹ 20 crore or asset size of more than ₹ 100 crore.
Annual Financial Reports
Audited Balance sheet and Auditor’s Report by NBFC accepting public deposits.
Branch Information Report
NBFC company has to file branch information report in the prescribed format.
Returns to be submitted by non-deposit taking NBFCs:
A Quarterly statement of capital funds, risk weighted assets, risk asset ratio etc.
Monthly Return
Monthly Return on Important Financial Parameters.
Monthly return statement of short term dynamic liquidity
Half yearly return statement of structural liquidity.
Half yearly return statement of interest rate sensitivity.
Branch Information Report
Non Deposit taking NBFC company also needs to file branch information report in the prescribed format.

Benefits of a NBFC Company Registration:

Limited Liability:

The liability of the members of the Company is limited. The Directors or Shareholders are not personally liable for the debts of the Company. For example, when Company is in default of repayment of debt or loan, there is a protection to the personal assets of the Directors or Shareholders. They can recover the loan amount only by selling the assets of the Company.

Aids Economic Development

Non Banking Financial Companies (NBFC) mobilize resources thereby converts savings in to investments, capital formations, provides long-term credits or specilized credits and helps in development of financial market. Further, NBFCs often take lead role in providing innovative financial services to Micro, Small, and Medium Enterprises (MSMEs) most suitable to their business requirements. NBFCs do play a critical role in participating in the development of an economy by providing a boost to transportation, employment generation, wealth creation, bank credit in rural segments and to support financially weaker sections of the society. Emergency services like financial assistance and guidance is also provided to the customers in the matters pertaining to insurance. They supplement the role of the banking sector in meeting the increasing financial needs of the corporate sector, delivering credit to the unorganized sector and to small local borrowers.

NBFCs are Game Changers

  • Sectoral Size: The NBFC sector has grown considerably in the last few years despite the slowdown in the economy.

  • Profitability: NBFCs are more profitable than the banking sector because of lower costs. This helps them offer cheaper loans to customers. As a result, NBFCs' credit growth - the increase in the amount of money being lent to customers.

  • Growth: On an average, it grew 22% every year. This shows, it is contributing more to the economy every year. In terms of year-over-year growth rate, the NBFC sector beat the banking sector in most years between 2006 and 2013.

  • Infrastructure Lending: NBFCs contribute largely to the economy by lending to infrastructure projects, which are very important to a developing country like India.

  • Inclusive Growth: They finance projects of small-scale companies, which is important for the growth in rural areas. NBFCs cater to a wide variety of customers - both in urban and rural areas. They also provide small-ticket loans for affordable housing projects. All these help promote inclusive growth in the country.

P2P Lending

P2P Lending is nothing but peer to peer lending. It is also known as Social Lending or crowd lending. Peer-to-peer (P2P) lending enables individuals to obtain loans directly from other individuals, setting out the financial institution as the middleman. P2P Companies have greatly increased its adoption as an alternative method of financing. The P2P lending business model is regulated by the Reserve Bank of India and recognized as Non- Banking Financial Company. Currently the business of P2P lending is emerged by Fintech companies in India. P2P lending companies connect borrowers directly to investors through online web portals. The P2P company sets the rates and terms and enables the transactions. P2P Lenders are Individual investors who wish to get a better return on their cash savings than a bank savings account. P2P borrowers seek an alternative to traditional banks or a better rate than banks offer.

Director Dual Role:

The Director of the Company can be the employee of the Company. He can give his own premises on rent/lease to Company and Collect rent from it, he can give loan to the Company and can take loan from Company, he can supply goods or services to the Company and get consideration for that.

Separate Entity:

The members of the Company may come and may go but Company may not go that means the members are different and the Company is different. Company can own assets on it own name and can sell. It can sue and can be sued in a court of law.

Trading in Money Market

Non Banking Financial Companies (NBFC) can trade securities in Money Market whereas a normal company can not. An NBFC can manage portfolios of stocks and sahres. An NBFC can underwrite shares or stocks.

CompaniesHouse - The MCA:

As an Official Company Registration Agent, we have built strong ties with the Ministry of Corporate Affairs, Govt of India since our own formation. Since we began, our goal has been to provide a seamless incorporation process that is quick and simple to use. Today, our company registration system is one of the most effective and efficient in India. In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered. We also keep our company formation pricing competitive, while always exploring innovative ways to provide value to our customers. We are pleased to be one of the most affordable ways to start a company in India.

We have the expertise to advise which is the correct corporate structure they need to put in place. Most customers come to us for help registering a company limited by shares. The limited company structure is popular as it allows profits to be distributed amongst the shareholders while at the same time protecting them through the limited liability aspect. Our team has well over 20-years of combined expertise forming companies and providing corporate and secretarial services that help thousands of our clients grow their businesses each year.

We are incredibly passionate about the quality of our service, and we are incredibly proud of our customer feedback, as shown by our excellent reviews and ratings. Time and time again, we are selected for the value and expertise that our team is known for. We have helped shape the industry by providing innovative business services and bundled packages that have evolved alongside the needs of our customers.

Our clients have access to free support from an expert team. We are always on standby to help. If you need assistance at any point before, during, and after the registration of your company, you will be able to reach us by telephone or email.

Why CompaniesHouse?

No Hidden Charges:

We believe in clear and transparent pricing. The price advertised is the price you pay. There are no additional costs to register your business.

Speedy Service:

In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered.

20+ Years of Exp:

We are experts in our field, our team has over 20 years of experience. Take the hassle out of setting up your business, rest assured that you are backed with the support you need to succeed.

Trusted Service:

Today our clients expect outstanding service. That's why we are so proud that 99% of our clients rate us "Great" and "Excellent" on Google.


The whole process, from ordering to using your company registration license, is made as simple and easy as possible to help you build your business.

Privacy & Security:

Customer privacy and security is paramount. We ensure your payment, company and personal information is protected at the highest level.

What Client Says?

You are truly experienced in Company Registrations. Keep it up!

Ram Kumar Chilukuri Director, Anewa Engineering Pvt Ltd

Thanks for your continuous support. God bless you!

Nrupesh CFO, Blujay Solutions Private Limited

Thank you CompaniesHouse for saving in Income Tax!

Avtar Singh Managing Partner, Chetak Transporters

We are surprised to get our Company registered in one day. Thanks.

Mohammed Fasiuddin Director, Avidus Engineering Pvt Ltd

Thank you for the initial discussion as we choose best business format!

Lakshmi Keerthi Reddy Director, Lavanar Sea Food Farming Private Limited

Thank you CompaniesHouse for reminding on timely statutory compliance!

Rambabu Director, Cybervillage Solutions Pvt ltd

Let's Clear Your Doubts

What is DIN?

DIN stands for Director Identification Number. Every Director of the company will get this unique Director Identification Number subsequent upon the Company Incorporation. With this DIN, he/she can register any number of companies.

A DIN holder has to file his KYC with MCA every year on or before 30th day of September otherwise a penalty of Rs. 5000/- will be imposed.

What is DSC?

DSC stands for Digital Signature Certificate. Class-III Digital Signature Certificate is required for each Shareholder while registering his/her company.

There are different companies who issue Class-III DSCs. These companies are called DSC Certifying Authorities. We have associated with eMudhra Tamil Nadu. eMudhra is one of the largest Digital Signature Certifying Authority in India.

What is Authorised Share Capital?

An authorized share capital is a share capital amount upto which the shareholders can invest in equity of the company.infact, this the permission limit to invest amount into Equity Sharecapital.

What is Paidup Sharecapital?

Paid up share capital is an amount, which is deposited by the shareholders of the compnay in company's bank account towards share capital.

What is CIN?

A CIN is a company identificaton number, which is generated by the Ministry of Corporate Affairs while generating the Certificate of Incorporation.

We can treat it as the company registration number.

What is the duration for Company Registration?

If we apply direct incorporation without applying for Certificate of Name Availability, it may take 3 to 5 working days. Some times, it may be incorporated even in one day.

But it is advisable to apply first company name and then incorporation and in this case it may take 10 to 15 days.

What is the Government fee for NBFC Company Registration?

As the minimum share capital requirement is Rs.200 Lakhs and the company incorporation fee is approximately Rs. 350,000/-. However, this fee may be varied from state to state in India.

Can I start company from my home address?

Yes, you can start a Company from your home address too.

Can I register my Company on my own?

No, you can not register Company on your own as Professionals like Company Secretary/Chartered Accountant has to sign digitally along with a Director on the application forms, then only your Companay will be registered.

What is minimum amount of Sharecapital with wich I can start my Company?

Rs. 2 Crore.

What are the minimum number of Directors required to register an NBFC Company?

Minimum of two directors are required to register the NBFC Company.

What are the minimum number of members required to register an NBFC Company?

Minimum of two members are required to register the NBFC Company.

What are the differences between NBFC and BANK?

NBFC cannot accept demand deposits whereas the Bank can. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself whereas the Bank can do. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of Banks.

Does the Reserve Bank of India regulate all NBFC Companies?

No. Housing Finance Companies, Merchant Banking Companies, Stock Exchanges, Companies engaged in the business of stock-broking/sub-broking, Venture Capital Fund Companies, Nidhi Companies, Insurance companies and Chit Fund Companies are NBFCs but they have been exempted from the requirement of registration under Section 45-IA of the RBI Act, 1934.