NBFC Advisory

NBFC Incorporation & Compliance

End-to-end NBFC incorporation, RBI licensing, CoR application, and ongoing compliance — from business plan to regulatory audit.

⏱ 12–24 Weeks 📋 15+ Deliverables 🌍 India
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Overview

What is NBFC Incorporation & Compliance?

Non-Banking Financial Companies (NBFCs) play a critical role in India's financial ecosystem. Setting up an NBFC requires incorporation under the Companies Act, followed by RBI registration (Certificate of Registration) under Section 45-IA of the RBI Act, 1934.

Why It Matters

Operating as an NBFC without RBI registration is illegal and can lead to criminal prosecution. Even after registration, NBFCs face stringent prudential norms, NPA classification, and reporting requirements that differ based on size (NBFC-ND, NBFC-D, NBFC-ND-SI, etc.).

SilverSiX provides end-to-end NBFC advisory — from incorporation and CoR application to ongoing compliance, scale-based regulation, and funding advisory.

📊 NBFC Categories

  • NBFC-ND (Non-Deposit taking)
  • NBFC-D (Deposit taking)
  • NBFC-ND-SI (Systemically Important, > ₹ 500 Cr)
  • NBFC-P2P, NBFC-AA, NBFC-Account Aggregator
  • Core Investment Company (CIC)
  • Housing Finance Company (HFC)
Our Scope

Comprehensive NBFC Services

🏢 Incorporation

Complete company incorporation with NBFC-compliant MOA/AOA and capital structure.

  • Company incorporation (Pvt Ltd / Public Ltd)
  • MOA / AOA with financial activity clause
  • Minimum net owned fund (₹ 2 Cr for NBFC-ND)
  • Director fit & proper assessment

📜 CoR Application

RBI Certificate of Registration application with comprehensive business plan and documentation.

  • Business plan & market analysis
  • Net owned funds certification
  • Directors' fit & proper declarations
  • CIBIL / credit reports
  • RBI online application (COSMOS)

📋 Scale-Based Regulation

Compliance with RBI's scale-based regulatory framework for NBFCs.

  • Base layer, Middle layer, Upper layer classification
  • NOFHC requirement (Upper layer)
  • Capital adequacy (15% minimum)
  • Exposure & concentration norms

💰 Funding Advisory

Capital raising through equity, debt, and external commercial borrowings for NBFCs.

  • Equity infusion & preferential allotment
  • Bank credit line structuring
  • Securitization & assignment
  • NCD issuance (private placement)

📈 Returns & Reporting

All RBI returns including NBS-1, NBS-2, NBS-3, NBS-4, and statutory liquidity reporting.

  • NBS-1 (Deposits) — quarterly
  • NBS-2 (Prudential norms) — quarterly
  • NBS-3 (Liquid assets) — quarterly
  • NBS-4 (Fraud reporting) — event-based
  • Scale-based regulatory returns

🔍 Regulatory Audit

Annual statutory audit and RBI inspection preparedness.

  • Statutory audit coordination
  • RBI inspection readiness
  • NPA classification review
  • Fair practices code compliance
Execution

Our NBFC Process

1

Feasibility & Planning

Business model validation, regulatory category selection, and capital planning.

2

Incorporation

Company formation with NBFC-compliant constitutional documents and capital infusion.

3

CoR Application

Comprehensive RBI application with business plan, NOF certification, and director KYC.

4

RBI Liaison

Responding to RBI queries, site inspection coordination, and follow-up until CoR issuance.

5

Operational Setup

Policy framework, IT systems, and compliance infrastructure setup.

6

Ongoing Compliance

Quarterly returns, annual audits, and regulatory update advisory.

Deliverables

What You Receive

DeliverableDescriptionTimeline
Feasibility ReportNBFC category, capital & regulatory roadmapWeek 2
Business PlanComprehensive plan for RBI CoR applicationWeek 3
Incorporation KitCompany formation + MOA/AOA + PAN/TANWeek 4
NOF CertificateNet owned funds certification from CAWeek 5
CoR ApplicationRBI COSMOS application with all annexuresWeek 6
Policy FrameworkKYC, AML, Fair Practices, NPA policiesWeek 8
Compliance CalendarNBS-1 to NBS-4 + scale-based returnsWeek 10
Inspection ReadinessRBI inspection preparedness kitOngoing
FAQ

Common Questions

What is the minimum capital required for an NBFC? ▼
The minimum Net Owned Funds (NOF) for an NBFC-ND is ₹ 2 Crores. For NBFC-D and certain categories like Factoring, the requirement may be higher. The entire NOF must be deployed in the business.
How long does RBI take to issue the CoR? ▼
Typically 4–6 months from application, depending on the completeness of documents, RBI queries, and the applicant's background. We expedite this through meticulous application preparation.
Can an NBFC accept public deposits? ▼
Only NBFCs with a specific deposit-taking license (NBFC-D) can accept public deposits, subject to stringent prudential norms. Most new NBFCs operate as non-deposit taking (NBFC-ND).
What is scale-based regulation? ▼
RBI classifies NBFCs into Base Layer, Middle Layer, and Upper Layer based on size, activity, and interconnectedness. Upper layer NBFCs face stricter norms including NOFHC requirements.
Can a foreign company invest in an Indian NBFC? ▼
Yes, FDI is permitted in NBFCs under the automatic route up to 100% for most activities. However, specific conditions apply for deposit-taking and certain regulated activities.

Ready to Structure Your NBFC Setup?

Book a confidential discovery call with our advisory team. We assess your situation and outline a clear execution roadmap within 48 hours.

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