Escort Bayanlar Maltepe
Mp3 İndir Dur
Finance

Successful Ways to Start Micro Finance Company

Small businesses generally struggle to get loans from traditional banks due to a lack of documentation and other requirements. In such cases, microfinance businesses come into existence to help small businesses get access to credits. 

Before starting a microfinance company, you will need to be aware of certain crucial steps. Generally, there are two ways to set up a microfinance company.  Continue reading this blog to learn the difference between the two and the process involved to set them up. 

You can set up a microfinance company under two categories, such as: 

  • As an NBFC, Non-Banking Finance Company, registered with the RBI. 
  • As a section 8 company, formed based on the provisions of section 8 of the Companies Act, 2003. 

Requirements to register your microfinance company

To register your microfinance company, you will need to meet certain requirements. 

  • Requirements to register as an NBFC
  • You must have RBI approval. 
  • You must have a minimum net-owned fund of Rs. 5 crores. 
  • The director or one of the directors must have at least ten years of experience in the service industry. 
  • The maximum loan limit must not be more than 10% of the total assets.  
  • You must follow the due process of forming a company. 
  • It is mandatory to have at least seven members to register a public NBFC and two members for a private NBFC.  

Requirements to register as a section 8 company

  • RBI approval is not mandatory. 
  • No minimum requirement of owned funds. 
  • No prior experience is required for the directors. 
  • You can offer unsecured loans of up to Rs. 50,000/- to SMEs. 
  • You must have a minimum of two members in your microfinance company. 

The Process involved in registering a microfinance company 

The process of registering a company finance company depends on whether you are choosing an NBFC or section 8 company. Here are the steps based on the two categories mentioned above. 

Registration as an NBFC

1. Form a company

Before registering as an NBFC, you will need to form a public or private company.  You will need at least 7 members to form a public company and at least Rs. 100,000/- and 2 members to form a private company. 

2. Raise the minimum net owned fund 

You will need to have a minimum capital of Rs. 5 crores as the Net Owned Fund.

3. Deposit the capital as FD 

You will need to deposit the required capital as a fixed deposit in a bank. After that, you will get a No lien Certificate.

4. Apply for the license

To get a license from the Reserved Bank of India, you will need to submit the following documents: 

  • Memorandum of Association
  • Articles of Association
  • Company incorporation certificate
  • Board resolution document
  • Auditor’s report on the receipt of fixed deposit
  • No lien certificate from the bank
  • Structure plan of the microfinance company
  • Directors’ credit reports 
  • Qualification and education proofs of directors
  • Income proof and KYC of directors
  • Work experience proof of directors in the financial sector 

Registration as a section 8 company

1. Get your DSC and DIN

To register your company, you will need to get the Digital Signature Certificate (DSC) and Director Identification Number (DIN) for your directors. They are required for the authorization of the e-forms. 

2. Apply for a name approval

After that, you will need to apply for name approval. You will need to fill in Form INC-1. Keep in mind that the proposed name must suggest that your company is a section 8 company. For instance, your company name must contain words like foundation or microcredit. 

3. Draft MoA and AoA

In this step, you will need to draft your Articles of Association (AoA) and Memorandum of Association (AoA). You must file them along with specific documents. 

4. Apply for incorporation

In the end, you will need to file for microfinance company incorporation under form INC-12. You must submit the following documents with your application:

  • PAN Card copies of company directors  
  • Identity proof
  • Address proof
  • Photographs
  • Ownership proof of the office
  • The stamp duty applicable in your state

As mentioned earlier, a microfinance company registration depends on the type of company. It is worth noting that the registration of a company comes with a cost. You will need to pay Rs. 25000/- to register a section 8 company, and the registration cost to register an NBFC comes between Rs. 4 to 5 lakhs. 

So, if you wish to set up a microfinance company to offer sme loans to small and medium businesses, you will need to carefully read the above-said steps. It allows you to avoid delays or frustration during the registration of your company.

Suruchi Pandey

Hi there! This is Suruchi Pandey. I am a Self-employed, Working Professional. I love to Blogging, Creative Art, Photography, Reading, Others. I would love to connect with everyone here.
Antalya escort

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Kartal Escortbonus veren sitelerfruit partystardaMaltepe EscortPendik Escortbonus veren sitelerbonus veren sitelerbonus veren sitelerAnadolu Yakası EscortArascasinolimitsizbahismisliwinhullbetsowinbetloyalbahislibertabetmoldebetorbibetankabahisataşehir escortPure casinoHyper casinoDrift casinoBetsson casinoligobetMahmutlar Escorthttps://www.digitalnorthampton.com/casino siteleribetonredPorno Film izledeneme bonusuistanbul escortküçükçekmece escortbesiktas escortankara escortmasalbet üyelikpin up giriş1xbet üyelikotobet üyelikJojobetcasibom girişcasilotbetosferluckyland slotsluckyland slots appbakırköy escortholiganbetbingo blitzcasino worldslotomaniaslotomania free coinsmcluck casino loginhello millionsjackpot party casinoonwinonwin girişmeritking güncel girişcasino sitelericaesars social casinocaesars social casino loginspree casinoluckybirdmoonspin casino no deposit bonusslot madness no deposit bonussweeptastic casinosweeptastic casinocash frenzy free slotsrolling richesrolling riches casinotao fortuneGrandpashabetgrandpashabetgrandpashabetcratosroyalbetGrandpashabetbetwoontao fortunecrown coins casinofunzcitykickr casinojackpotafortune wheelzreal prizemega bonanza no deposit bonusmega bonanza no deposit bonusslotparkgrandpashabetgrandpashabetTokyobetfree sc coinssocial casino no deposit bonusnew sweeps casinosfree sc casino real moneyyay casino no deposit bonusCaesars Social Casinofirespin casinosweeps coins casinosocial casino no depositsweeps cash casinosonline casinos free sclist of sweepstakes casinosCasibom Casino Sitelericasibomcasibom güncel girişimajbetcasibom mobilsetrabetbetcio girişhttps://www.bakirkoyfal.com/haartransplantatieTokyobetcasinolevantMaquilhagem PortoJojobethttps://verylol.com/marsbahisgalabetgalabet girişnakitbahis güncel girişdumanbet güncel girişkralbetdinamobet güncel girişkulisbetbetkanyonvaycasino güncel girişmatbetsekabetmatadorbetbetciosekabetonwinonwinonwinsahabetkingroyalkingroyalkingroyalmeritbetjojobetholiganbetcasibomholiganbet girişmarsbahis girişcasibom girişmatadorbet girişsahabet girişonwin girişsekabet girişholiganbet girişjojobet girişmatbet girişimajbet girişmarsbahis girişjojobet girişmatbet girişmarsbahis girişultrabet güncel giriştipobet güncel girişcasibomjojobet girişmicroblading portosobrancelhas portomicroblading portomaquilhadora portocasibomMeritkingGüvenilir Bahis Sitelerivaycasinoocasibom girişsahabetsahabetmarsbahismarsbahisbetparksuperbetindeneme bonusu veren siteler forumvaycasinobetturkey güncel giriştrendbet güncel girişkulisbet güncel girişjojobet girişfixbet girişparibahisjojobet girişgalabetotobet güncel girişcasibomcasibomjojobet girişvaycasino güncel girişbetturkey girişcasibomextrabetholiganbetsekabet girişjojobet girişbetturkeybetturkeymadridbetatlasbet güncel girişJojobet Girişcasibom girişistanbul escortcasibom girişcasibommatbetfixbetbetciocasibompusulabetpusulabet güncel girişcasibom girişsweet bonanzacoinbar güncel girişmavibet girişceltabetstarzbet twittermarsbahismarsbahisbetebetbetebetmarsbahisgalabetotobetgalabetotobetgalabetportobet güncel girişsahabetcasibommarsbahiscasibomcasibomcasibommarsbahisholiganbet güncel girişmeritbet güncel girişjojobet güncel girişkingroyal güncel girişkingroyal güncel girişsahabet güncel girişimajbet güncel girişonwin güncel girişonwin güncel girişbetcio güncel girişmatadorbet güncel girişbetturkeystarzbetxslotcasibom güncel girişmillibahismaldives casinoacarbetvbetvbetvbetromabettaraftarium24justin tvvbetvbetselçuksportstaraftarium24sahabet girişcasibom güncel girişfatih eskortvaycasinoBetkare Güncel Girişmatbet girişmavibetcasibomjojobetjojobetjojobettipobet güncel girişholiganbet giriştaraftarium24justin tvselcuksportshdbetsmovegoldenbahisbetnanopusulabetCasibom792bettiltzbahisbets10Pusulabet güncel girişBets10sahabetbetbetwoonSekabet girişarlequin casinoasyabahistempobet1xbetpillow coversmatbet güncel girişMobil Ödeme Bozdurmacasibomonwinbagcilar escortbahisbeybetplayKavbetsetrabetcasibomcasibomganobet güncel girişcasibombetturkey girişcasibomcasibomsweet bonanza,sweet bonanza oyna,dede oynapusulabetbetturkey güncel girişbetturkeybetturkeycasibomcasibom girişbetasus güncel girişbetturkey
casino siteleri canlı casino siteleri 1xbet canlı casino siteleri