Section 8 Microfinance Company has been registered under the Companies Act 2013 of India who has an objective of providing the loans & other financial help to the groups of small business who have not been included in the formal banking system due to any reason including poverty, occupation, ethnicity, religion, or nationality.

It is the most suitable option to register a Section 8 Microfinance Company if you want to start a finance business anywhere in India without any interference & approval from the RBI i.e. Reserve Bank of India and with no capital restriction. It can be start with the social aim of helping poor people for reducing poverty.

A Section 8 Microfinance Company is needed because of the following reasons:

   Provides financial assistance for the enterprises that are not able to lend anything as       guarantee.

   Encourages the women entrepreneurship

   Provides too much support needed by the startups.

   Offers assistance also for the smaller amounts

No need of the approval of RBI

Can provide unsecured loan

No demographic barrier

No requirement of minimum capital

Defaulters of loan repayment can be sued for non-payment

High rate of interest (may be up to 26% p.a. interest rate)

Limited compliances

Engaged in the other activities also including education, health, environment, sanitation, and many more.

Registered with ROC i.e. Registrar of Companies as a non-profit organization

Step 1: Planning & Documentation

Before going for the registration, you should make sure that you have all the required documents.

Step 2: Apply for DSC

The next step involves applying for the DSC i.e. Digital Signature Certificate of all the directors

Step 3: Name Approval

After that, you should have to select a unique name for your company and must check its availability.

Step 4: Company Registration Application

Then, you are required to fill the online application which is SPICe form available on the MCA Portal along with your documents including MOA & AOA.

Step 5: Incorporation Certificate Issuance

After the approval of the documents from MCA i.e. Ministry of Corporate Affairs, PAN, TAN & Certificate of Incorporation will be issued to you.

For directors:

PAN card of both the directors

Aadhaar Card of both the directors

Bank statement of both the directors with address (not older than 2 months)

Passport size photographs of both the directors

Email address & phone numbers of both the directors

For proposed registered office address

Copy of any utility bill

Copy of NOC from the owner

The registration fees to register a Section 8 Microfinance Company will be around Rs. 50,000/-

Section 8 Microfinance Company is company providing financial helps to the small business groups. Registration of the Section 8 Microfinance Company is very important. LegalPillers is here to help you with the hassle-free registration of the Section 8 Microfinance Company. Choose LegalPillers as your trusted partner for registering the company.