An NBFC is a company registered under the Companies Act, 2013 which is engaged in the business of loans and advances, receiving deposits (some NBFC only), acquisition of stock or shares, leasing, insurance business, investment business, micro-financing etc. 

NBFC Company Registration once done can commence its operations only after obtaining the license from the Reserve Bank of India. For this, the first process is the formation of a company under Companies Act, 2013. The name of the company must reflect the character of the NBFC. For example, investment, finance etc. may be used. 

At the time of incorporation, the net owned funds shall be Rs 2 crore, that is the paid-up share capital should suitably arise either at par or premium so as to attain a minimum net owned fund of Rs. 2 crores. 


The capital to be raised should be equity share capital and not preference share capital. The limit of Rs. Crores shall be reflected by way of a fixed deposit in the bank account of the company. The entire sum should be kept in a bank account in a deposit account free from all liens. The RBI at the time of considering the application verifies the deposit held by the company with the bankers. The final step would be the application to the RBI. 


An application for certificate/license shall be filled online, by creating a COSMOS account and also a physical copy of the application shall be sent to the RBI headquarters. Which means that once the application is filled the company shall get an application reference number for the COR application filled online, the company submits the hard copy of the application form in duplicate, along with supporting documents to the concerned regional office. NBFC registration is complete once the Reserve Bank of India issues the certificate of registration after satisfying itself that the conditions are enumerated in section 45-IA of the RBI Act, 1934 are satisfied.