Starting an NBFC vs. Buying One – What’s Smarter?
Entering India’s Non-Banking Financial Company (NBFC) sector is an attractive opportunity for investors, fintech founders, and financial institutions. The big question most investors face is:
Should you start a fresh NBFC or buy an existing one?
While setting up a new NBFC may sound exciting, the practical realities often push investors toward NBFC acquisition as the smarter route.
Starting a Fresh NBFC: The Reality Check
Registering a new NBFC in India is a highly regulated process under the Reserve Bank of India (RBI). Investors often face:
- 6–8 months (or more) of RBI approvals
- Extensive documentation and regulatory scrutiny
- Continuous compliance filings even before operations begin
- Risk of delays, clarifications, or outright rejection
For businesses looking to enter the market quickly, this timeline can be a major bottleneck.
Buying an Existing NBFC: A Faster Market Entry
This is why many investors today prefer buying an already registered NBFC.
✔ Quicker Launch
With an RBI-approved NBFC, you can enter the market immediately, avoiding long registration timelines.
✔ Built-In Infrastructure
An existing NBFC often comes with:
- Established systems and processes
- Compliance framework already in place
- Corporate history and goodwill
This reduces the time and cost needed to become operational.
✔ Lower Compliance Stress
By skipping the initial registration phase, you avoid months of procedural filings and regulatory uncertainty.
The Hidden Risks of NBFC Takeovers
While acquiring an NBFC offers speed and convenience, it is not risk-free.
Common issues include:
- Undisclosed liabilities
- Pending RBI or MCA compliances
- Incomplete statutory filings
- Legacy management or governance gaps
Without proper checks, these issues can slow operations or create regulatory challenges later.
Why Due Diligence & RBI Approval Matter
A successful NBFC takeover depends on:
- Comprehensive financial, legal, and operational due diligence
- Proper RBI approval for change in control and management
- Accurate valuation and structured transaction documentation
Missing any of these steps can expose buyers to serious compliance risks.
Our Experience in NBFC Takeovers
We have assisted 50+ NBFC acquisitions through a structured and compliant process that ensures:
- Clean regulatory history
- Transparent financial verification
- Smooth RBI and MCA approvals
- Secure and compliant transition of ownership
Our end-to-end advisory minimizes risk and maximizes speed.
So, What’s the Smarter Choice?
- Starting an NBFC suits those with time, patience, and long-term plans.
- Buying an NBFC is ideal for investors seeking speed, certainty, and operational readiness.
The smarter option depends on your business goals—but in most cases, NBFC acquisition offers a faster and more efficient entry into the financial sector.
Planning an NBFC Acquisition? Let’s Talk.
If buying an NBFC is on your mind, our experts can guide you through every step—from due diligence to RBI approval and takeover execution.
📞 Contact us for a free consultation: +91 93113 47006
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