Quick Answer
NBFC Registration Online India is the process of obtaining a certificate of registration from the Reserve Bank of India (RBI) to operate as a Non-Banking Financial Company. Governed by the Reserve Bank of India Act, 1934 and the Companies Act, 2013, this registration is mandatory for any company engaged in lending, investment, or other financial activities.
NBFC Registration — detailed explanation below
Governing Act — NBFC Registration Online India
The primary legislation governing NBFCs is the Reserve Bank of India Act, 1934, specifically Section 45-IA which mandates registration. Additionally, the Companies Act, 2013 governs the incorporation and management of the company. The RBI has issued Master Directions on NBFC Registration (2016) detailing the application process.
Government Department & Website for NBFC Registration Online India
The Reserve Bank of India (RBI) is the regulatory authority for NBFC registration. Applications are submitted through the RBI's online portal: https://cosmos.rbi.org.in. The Department of Non-Banking Supervision (DNBS) handles the scrutiny and approval.
NBFC Registration Online India Application Process
The process involves: (1) Incorporate a company under the Companies Act, 2013 with minimum net owned funds of ₹2 crore. (2) File the application in Form NBS-1 on the RBI's COSMOS portal with required documents. (3) RBI scrutinizes the application and may issue a Certificate of Registration (CoR) if all conditions are met. The company must have a sound business plan and fit and proper management.
Key Forms Required for NBFC Registration Online India
The main form is Form NBS-1 (Application for Registration of NBFC). Supporting documents include: Memorandum and Articles of Association, board resolution, audited financial statements, credit rating report (if applicable), and KYC of directors. For NBFCs accepting public deposits, additional forms like NBS-2 are required.
Eligibility Criteria for NBFC Registration Online India
To be eligible, the company must: (1) Be registered under the Companies Act, 2013. (2) Have minimum net owned funds of ₹2 crore (₹25 lakh for certain NBFCs like those in North East). (3) Have a 'fit and proper' management. (4) Ensure that its financial activities constitute at least 50% of its total assets and income.
Timeline for NBFC Registration Online India
The RBI typically processes applications within 3-6 months from the date of submission of complete documents. However, the timeline may vary based on the complexity of the application and RBI's workload. No specific timeline can be guaranteed.
Fees for NBFC Registration Online India
The government-prescribed fees for NBFC registration are as follows:
| Fee Type | Amount (INR) |
|---|---|
| Application Fee (Form NBS-1) | 2,500 |
| Registration Fee (if CoR granted) | 10,000 |
| Annual Fee (for NBFCs with assets > ₹100 crore) | 5,000 |
Note: Fees are subject to change as per RBI notifications.
Frequently Asked Questions
What is NBFC Registration Online India?
NBFC Registration Online India is the process of applying to the RBI for a certificate to operate as a Non-Banking Financial Company. It is mandatory for companies engaged in lending, investment, or financial activities.
Who needs NBFC Registration Online India?
Any company incorporated under the Companies Act, 2013 that carries on the business of loans, advances, acquisition of shares/stocks, or other financial activities must obtain NBFC Registration Online India from RBI.
What is the minimum capital required for NBFC Registration Online India?
The minimum net owned funds required for NBFC Registration Online India is ₹2 crore. However, for NBFCs operating in the North Eastern Region, the minimum is ₹25 lakh.
How long does NBFC Registration Online India take?
The RBI typically processes NBFC Registration Online India applications within 3-6 months after submission of complete documents. The timeline may vary based on the application's completeness and RBI's workload.
What documents are needed for NBFC Registration Online India?
Key documents include: Memorandum and Articles of Association, board resolution, audited financial statements, KYC of directors, and credit rating report (if applicable). All documents are submitted via Form NBS-1 on the RBI's COSMOS portal.
Can a company apply for NBFC Registration Online India without prior RBI approval?
No, a company must obtain NBFC Registration Online India from RBI before commencing financial activities. Operating without registration is illegal and may attract penalties.
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