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From the Vakilkaro blog
Practical guides on registration, trademark, tax, NGO and compliance — written and reviewed by our legal team.
How to Register an NBFC with RBI
How to register an Non-Banking Financial Company (NBFC) with RBI in India involves a detailed process that begins with incorporating a private or public limited company under the Companies Act, 2013, and ensuring a minimum Net Owned Fund (NOF) of ₹2 Crore. The next step is applying through the RBI's
NBFC Company Registration Process
The NBFC company registration process in India involves incorporating a company under the Companies Act, meeting the ₹2 Crore Net Owned Fund (NOF) requirement, and submitting an application through RBI’s COSMOS portal. Essential documents include MOA, AOA, financial statements, KYC of directors, and
NBFC & FinanceNBFC Registration Fees
Understanding NBFC registration fees is crucial for aspiring financial service providers. This guide covers all essential costs, including the RBI application fee of ₹3,00,000, the minimum Net Owned Fund (NOF) requirement of ₹2 Crore, and additional expenses like professional fees, compliance costs,
NBFC & FinanceNBFC License Cost
Understanding NBFC license costs is essential for starting a Non-Banking Financial Company in India. Key expenses include the ₹2 crore minimum Net Owned Fund (NOF) requirement, a ₹3 lakh RBI application fee, consultant fees ranging from ₹5 to ₹15 lakh, and legal compliance costs. Additional expenses
NBFC & FinanceNBFC Registration Requirements
Registering an NBFC in India involves meeting key regulatory requirements set by the Reserve Bank of India (RBI). Companies must be incorporated under the Companies Act, 2013, with a minimum net-owned fund (NOF) of ₹2 crores, which may be higher for certain categories. The business plan, financial s
NBFC & FinanceNBFC Registration Criteria
NBFC registration criteria in India includes requirement of incorporation under the Companies Act, ₹2 crore net-owned funds, experienced directors, and RBI approval. Applicants must submit a business plan and required documents via the RBI’s COSMOS portal. After verification and in-principle approva
NBFC & FinanceNBFC Registration Cost
NBFC registration in India requires a minimum capital of ₹2 crores, an RBI application fee of ₹300,000, and professional fees ranging from ₹2 to ₹5 lakhs for legal, financial, and compliance services. Documentation costs may reach ₹1 lakh, while ongoing compliance with RBI guidelines, technology set
NBFC & FinanceNBFC License Requirements
Obtaining an NBFC license for sale in India requires RBI approval, registration under the Companies Act, 2013, and a minimum paid-up capital of ₹2 crores. Directors must have a solid financial background and a clean credit history. The process involves submitting a business plan, MoA, AoA, board res
NBFC & FinanceNBFC Available for Sale
NBFC available for sale offers a quick entry into India’s financial sector without the lengthy registration process. NBFCs available for sale include those specializing in microfinance, infrastructure finance, and housing finance. Buying an existing NBFC saves time with pre-approved compliance, regu
NBFC & FinanceNBFC License for Sale
Buying an NBFC license for sale offers a quicker path to enter the financial services market, bypassing the lengthy RBI registration process. It provides access to established operations, financial systems, and customer networks. However, due diligence is essential to verify the license’s legitimacy
NBFC & FinanceMicro Finance Company Registration process
Microfinance companies drive financial inclusion by offering small loans to underserved communities. In India, registering as an NBFC-MFI or Section 8 company is essential for operating legally. NBFC-MFIs require a net-owned fund (NOF) of ₹5 crore (₹2 crore for North-East states) and RBI approval, w
Micro Finance Company under Section 8
A Micro Finance Company under Section 8 focuses on financial inclusion and social welfare, offering loans to underserved communities without profit motives. Unlike NBFC-MFIs, it doesn’t require RBI approval, simplifying registration through the Ministry of Corporate Affairs (MCA). The process involv
NBFC & FinanceIncorporation of a Microfinance Company in India
The incorporation of a Microfinance Company (MFC) in India promotes financial inclusion by offering small loans to underserved communities. It can be registered as either an NBFC-MFI, regulated by the RBI with a ₹5 crore Net Owned Fund (NOF) requirement, or a Section 8 Company, governed by the Compa
NBFC & FinanceDocuments Required for NBFC Registration
To register, you need documents required for NBFC Registration like the Certificate of Incorporation (COI), MOA, AOA, company PAN, and office address proof. Directors and shareholders must provide identity proof (Aadhaar, PAN), address proof, qualifications, experience certificates, and CIBIL report
NBFC & FinanceMicro Finance Company Licence
A Micro Finance Company Licence is essential for legally operating a microfinance business in India. Microfinance companies offer underserved communities small loans and financial services, promoting financial inclusion. These companies can be registered as NBFC-MFIs or Section 8 companies. NBFC-MFI
NBFC & FinanceMicrofinance Companies
Microfinance companies promote financial inclusion by offering credit, savings, and insurance to underserved communities, empowering rural entrepreneurs and low-income groups without requiring collateral. They help reduce poverty, boost entrepreneurship, and drive sustainable development. These comp
NBFC & FinanceWhat is Registered under Section 8 Company?
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, to promote charitable objectives like education, social welfare, and environmental protection. Unlike other companies, it does not distribute profits; instead, earnings are reinvested in its mission. These com
Legal Services InformationWhat is Copyright?
Copyright grants creators exclusive rights over their original works, including literature, music, films, and software, preventing unauthorized use. It is automatic upon creation and lasts the author’s lifetime plus 50 to 70 years before entering the public domain. Global agreements like the Berne C
Business RegistrationsIs It Mandatory to Have a Registered Office for a Pvt Ltd or LLP?
Having a registered office is mandatory for both Private Limited Company registration (Pvt Ltd) and Limited Liability Partnership registration (LLP) under Indian law. This official address is where all legal notices, government correspondence, and official documents are sent. The registered office i
Business RegistrationsUnderstanding the Tax Differences Between Pvt Ltd and LLP
A Private Limited Company (Pvt Ltd) and Limited Liability Partnership (LLP) differ in taxation. Pvt Ltd companies are taxed at corporate rates (25% for turnover below ₹400 crore) and face double taxation—once at the corporate level and again on dividends (15% DDT). However, they benefit from tax ded
NBFC & FinanceCan an NBFC Accept Deposits from the Public?
Non-Banking Financial Companies (NBFCs) play a vital role in India’s financial sector, offering services like loans and asset management. However, only Deposit-Taking NBFCs (NBFC-Ds), licensed by the Reserve Bank of India (RBI), can accept public deposits. These companies must undergo an NBFC regist
Business RegistrationsCan a Foreign National as Director in a Private Limited Company in India?
Foreign nationals can be directors of private limited companies in India, provided they meet legal requirements. They must obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC). Additionally, at least one resident director, who has stayed in India for 182 days in th
NBFC & FinanceHow is a Section 8 Microfinance Company Funded?
A Section 8 Microfinance Company, established through microfinance company registration, is a non-profit entity in India promoting financial inclusion for underserved communities. It secures funding through equity capital from promoters and impact investors, debt financing via banks, NBFCs, and peer
Business RegistrationsCan I Convert an OPC to a Private Limited Company?
Converting an OPC Registration (One Person Company) to a Private Limited Company Registration provides growth, flexibility, and access to funding. The conversion is mandatory if the OPC’s paid-up capital exceeds ₹50 lakh or annual turnover exceeds ₹2 crore, but can also be done voluntarily. The proc