Register Micro Finance (Credit) Company
Get Started By Paying Rs. 9000/-
Micro Finance Company
What is a Micro Finance Company?
A Micro finance Company which is also commonly known as Micro credit organization deals in small loan which is less than Rs.50,000 to various household, small businesses who do not have access to formal banking channels or eligibility for loans.
How to register micro finance Company in India?
There are two option by which micro finance can be registered in India one is through NBFC and another through Section 8 company. NBFC require 5 crore capital but section 8 does not require any minimum capital. Here is the process:
# Prepare DSC and file Name Approval: The first step is to prepare DSC and DIN. This takes sometime one to two days. Thereafter, you need to file for name approval. The name should be unique and should end with words like foundation, sanstha etc.
# File for License: After getting name approved, the next step is to prepare all the documents and then apply for license to do Micro finance business in consonance with prescribed RBI guidelines.
# File for Incorporation: After getting the license, we need to file for incorporation and once company is incorporated, you can start the micro finance business in India. However, please remember that you cannot take any deposit under section 8.
Documents Required for Micro Finance Company Registration
For Directors/ Shareholder
Copy PAN Card
Address Proof (Bank Statement, Mobile Bill, Telephone Bill)
Passport Size Photo
For Registered Office
Ownership Proof (Electricity Bill)
Utility Bill (Gas Bill, Electricity Bill)
NOC (Download format)
Micro Finance Company Registration Process
Micro finance company registration process requires you to comply with the RBI guidelines which are prescribed for NBFC companies. But you don’t require minimum capital of Rs.5 crore, RBI registration and provisioning requirements.
# Step 1 – Prepare DSC. DIN & Name approval: The first step is to file for DSC, DIN and name approval. The name should be unique under which one word reflect your brand. Further, maximum 6 names can be filed at one time.
# Step 2 – Apply for License: The second and the most important part is to get license from the government to do the social work in India. This is done through e-form no.12 with proper application and attachments.
# Step 3 -File for incorporation: The third step is to file the incorporation along with all necessary documents.The form is attached with all the important attachments like MOA, AOA, declarations etc.