Unlock Your Potential: Register Your Microfinance Company
Microfinance companies refer to financial institutions that assist low-income groups with finances. Tailormade provides end-to-end consulting for getting loans or funds. These financial requirements are mostly lesser if you compare with other corporate sectors. We guide you on how to access non-traditional financial institutions, for instance, banks, for fulfilling your financial requirements.
We have a team of certified domain experts, including CAs, CS, business experts, and more that has a hands-on experience in suggesting the best finance solutions. In addition to consulting, we come up with a series of microfinance company registration solutions online. These can be related to discovering authentic financial assistance, and much-needed support to startups. With complete monetary assurance (even for minimal hand loans), we promote women's entrepreneurship, introduce discipline in lending to low-income groups, and prevent over-borrowing without leading to high future debts.
Process for Microfinance Company Registration
However, the Reserve Bank of India monitors and conducts financial support. It observes if all financial activities are performed up to specified constraints.
There are ideally two ways to register a microfinance company in India.
A. Non-banking Finance Companies (NBFC) that are duly registered with RBI
We conduct detailed searches of public records maintained by the ROC to prepare comprehensive Search Reports. These reports include vital details such as a company’s legal status, directors, share capital, charges, and compliance history—helping businesses make informed decisions for partnerships, investments, or due diligence.
Private or Public Company
Any company can be registered as an NBFC microfinance company by forming a private or public company. For a private company, you require at least 2 members and a capital of INR 1 Lakh. In the case of a public company, you should have at least 7 members.
Capital Requirement
For registration, you require a minimum net-owned worth of INR 5 crores. This requirement differs for the northeastern region-based companies, which should have at least INR 2 crores.
Deposit the Capital
The next step is to have a deposit of the capital in a bank as a fixed deposit. You should obtain a “No Lien” certificate for it.
Have a Licence
Finally, an application is to be filled out and submitted along with all valid documents. This application should be a hard copy and must be submitted to the regional office of the Reserve Bank of India. This procedure requires certain documents also in support, which are listed below.
B.Section 8 Companies
It’s a non-profit organisation, whose registration requires these steps to pass through: .
Digital Signature Certificate and DIN
To register a Section 8 company, you should apply for a digital signature certificate and director identification number (DIN). These documents are must-haves to authorize e-forms.
Name Approval
This step is dedicated to the name of the company. For this, you need to fill the Form INC-1. This name should sound a Section 8 Company, whose suffix like Sanstha, Foundation, or Micro Credit defines on its own.
MOA and AOA
Upon name approval, the registration requires the Memorandum of Association (MOA) and Articles of Association (AOA). You need to show up some necessary documents to obtain these certificates.
Documentation
This is the last but most crucial step, which ensures documentation of all relevant papers like the incorporation certificate & Form INC-12 for a licence. What documents it precisely requires, the below-mentioned list can help you find them.