Micro Finance Company
(Section-8)
Registration

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  • MICRO FINANCE COMPANY (SECTION-8) REGISTRATION
    1,40,000/-

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What is a Micro Finance Company – An overview?

The Micro finance Company is basically the financial institutions who provides small type of financial services in the form of loans and credits. This company is given to ease the credit system for small businesses as they don’t get a loan from banks as like a lots of complex process. Therefore it is commonly/normally named as a Micro-credit, Micro-benefit organization.

There are two way to incorporate of Micro Finance companies that are allowed in India:.

  • Non – Banking Finance Companies (NBFC) are duly registered with RBI. The NBFC has to maintain Net Owned Fund (NOF) of Rs. 5 Crores.
  • Section 8 companies (companies formed/registered under Section 8 of the Companies Act 2013). This type of Micro Finance Company should not need to require RBI approval and is not required to maintain a minimum Net Owned Fund.

Conditions of Micro Finance Company (Section-8)

  •  Approval of RBI is not required
  • Minimum 2 persons required as Directors/Shareholders.
  • No minimum capital or not owned fund requirement, however, suggested a minimum capital of Rs. 1,00,000.
  • Only Unsecured Loans can be provided.
  • Interest can’t be charged higher than the allowed limit.
  • Basic documents required only.       

Benefits of Micro Finance Company (Section-8)

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No need for RBI approval

RBI guidelines specifically follow rules and regulations as like to form NBFC (Micro Finance Company) therefore Section-8 Micro Finance Company can start its work without the approval of RBI.

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Loans up to a Specific Limit

A Micro Finance Company is allowed to provide unsecured loans to small businesses up to Rs. 50,000 and Rs. 1,25,000 to Dwelling Residence.

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Requirement of Net Owned Funds

The other Financial Companies like Nidhi Company or NBFCs need to have a certain amount of Net Owned Funds before starting their business, but there is no such condition for Micro Finance Company as like section-8 company.

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Minimum Member

The other Financial Company Business is like 7 members in Nidhi and NBFCs but which is lower than the Micro Finance Company Registration can be done minimum with 2 Directors and Shareholders.

Strategy
Result

We Ensure Best Service

Proffs Tax is the best Online business consultancy for help to Company Registration Experts in India will help you with your Micro Finance Company Registration Online in a quick and easy process.

  • First and foremost, we will apply for your Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  • Choosing a Unique Name for your Company.
  • Preparing required Nidhi Company registration documents.
  • Filing e-forms with MCA.
  • Allotment of COI. Congratulations, your Micro Finance Company Registration is now complete.

Once the incorporation is completed, you can open a Current Bank Account at any of your nearest bank by submitting a copy of your Company’s COI, MOA, AOA PAN, and Board Resolution and all these documents provided by Proffs Tax team.

After Micro Finance Company registration and within 180 days, there are some other annual compliances that need to be required. These compliances are compulsory by the MCA department so then after completing that annual compliance you really want to work and grow their business. If in case of non-compliance, some penalty may also be levied but, don’t worry. The proffstax team has reminded you to be on time.

Proffs Tax is the best Online business consultancy for help to Company Registration Experts in India who will help you with your Micro Finance Company Registration Online in a quick and easy process.

DOCUMENTS REQUIRED