According to Section 45(1A) of the Reserve bank of India, following conditions must be fulfilled for a company to get NBFC License:
Registration
A company must be registered as per the rules, regulations, and provisions mentioned under Section 3 of the Companies Act 2013 or the previous Companies Act 1956.
Director’s Qualifications
At least 1/3rd of the Directors must have experience in Finance. And he/she must be a full-time Director.
Business Plan
For NBFC registration, the company must have a detailed business plan laid out for operations for the next 5 years.
Net Owned Fund (NOF)
The company must have at least Rs. 2 Crores as a Net Owned Fund. For calculating NOF, only equity paid-up share capital is to be included in this. The preference share capital is not to be included. It also includes Premium on Shares, and Reserves, if any. It should not be a borrowed fund.
Clean Credit History
The CIBIL records of the company, the Directors and the members must be clean. They must have no write-offs or have not intentionally defaulted the repayment of loans to
FDI Compliance
In case the foreign investment is expected, the company needs to be in compliance with the FEMA Act.