<p style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Yes, a startup can apply for NBFC (Non-Banking Financial Company) registration in India<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">, provided it meets the eligibility criteria laid down by the Reserve Bank of India (RBI).</span>

<p style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Here&rsquo;s what a startup needs to fulfill to </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">apply for NBFC registration</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">:</span>

<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">1. </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Company Structure</h3>
<ul style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">The startup must </span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">be registered</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> as a </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Private Limited Company<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> or a </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Public Limited Company<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> under the Companies </span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Act,</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> 2013.</span></li>
</ul>
<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">2. </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Minimum Net Owned Fund (NOF)</h3>
<ul style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">The company must have a </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">minimum Net Owned Fund of ₹2 crore<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">. </span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">For</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> NBFCs involved in microfinance or </span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">certain</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> special categories</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">, the requirement may vary</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">.</span></li>
</ul>
<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">3. </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Business Plan & Activity</h3>
<ul style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">The startup must propose to engage in </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">financial services<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> such as lending, investment, leasing, etc.</span></li>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">A </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">clear</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> business model and robust financial projections</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> are essential for RBI approval.</span></li>
</ul>
<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">4. </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Clean Background of Directors</h3>
<ul style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">The directors and shareholders must have a </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">clean credit and financial history<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> and </span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">must</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> not be involved in </span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">any</span><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> financial fraud or irregularities.</span></li>
</ul>
<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">5. </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">RBI Compliance</h3>
<ul style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">The startup must be ready to </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">comply with RBI regulations<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">, including regular reporting, audits, and KYC/AML norms.</span></li>
</ul>
<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">6. </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">Documents Required</h3>
<ul style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Certificate of Incorporation</span></li>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Memorandum & Articles of Association</span></li>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Board Resolution</span></li>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Audited financials</span></li>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">KYC documents of directors/shareholders</span></li>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; list-style-type: disc;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Business plan and NOF proof</span></li>
</ul>
<h3 style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Final Note:</span></h3>
<p style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">While startups can apply for NBFC registration, </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">preparation is key<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">. It's advisable to </span><strong style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">consult a legal or financial expert<span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true"> to ensure proper documentation and compliance with RBI guidelines.</span>

<p style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">Would you like a checklist or step-by-step guide on how a startup can apply for NBFC registration?</span>



<p style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;"><span style="color: #0e101a; background: transparent; margin-top: 0pt; margin-bottom: 0pt;" data-preserver-spaces="true">4o</span>

Useful information about how a startup can apply for NBFC registration