  We develop a formalism to describe the formation of bound states in quantum
field theory using an exact renormalization group flow equation. As a concrete
example we investigate a nonrelativistic field theory with instantaneous
interaction where the flow equations can be solved exactly. However, the
formalism is more general and can be applied to relativistic field theories, as
well. We also discuss expansion schemes that can be used to find approximate
solutions of the flow equations including the essential momentum dependence.
