Micro Finance Company Registration

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    What is a Micro Finance Company Registration?

    Micro finance companies are financial institutions that provide small loans to the poor, who typically cannot get a bank loan. Many micro finance companies were started because big banks would not provide loans to people with little or no collateral and low credit ratings. The first company of this type was Grameen Bank, which was created by Muhammad Yunus in Bangladesh in 1983. In many developing countries, such as Bangladesh, micro-finance companies have been successful because they were designed to help improve small businesses and agricultural production among the very poor citizens. The loan amount is often in the range of $150-500, which they use primarily towards education costs or other investment opportunities such as buying capital equipment for their business or farm. The interest rate can be 12% or even higher. There are basically 2 types of Micro Finance Company Registration that are allowed in India. North America has a few dozen Micro Finance Company Registration institutions that deal with loans of $500 and below, mostly targeting the poor in Third World countries. There are many ways to classify these financial companies, but typically a Micro Finance Company Registration purpose is to provide affordable loans for poor people in developing countries. The loan amount is usually small but the loan is usually over a long period of time and often becomes a long term savings program. The interest rate can be from 12% or more (which is high) but many are fixed at 8%.

    Mandatory Requirements for Micro Finance Company

    There are essentially 2 ways to register for a Micro Finance Institution (MFI). One way is to form a company and then apply to RBI for approval. The minimum requirements for a “Microfinance company” are Rs.5 crore net owned fund and active profiles of promoters. The second way is to register as a section 8 company. Leciel Consulting offers the second way of registration. Apply for central government licenses features of which are as follows:
    • An amount of Rs.50,000 can be given for business purposes and Rs.1,25,000 for household dwelling.s
    • No least net owned fund requirement. You can choose on your own
    • No RBI approval is needed since RBI has exempted this company from registration..

    Documents Required Micro Finance Company Registration

    • In the case of Indian citizens, the PAN card of shareholders and directors
    • Not more than 10 months old photograph of directors and shareholders.
    • Copy of Aadhaar card/voter identity card/passport/driving license of directors and shareholders
    • If you have rented property, then a copy of rent agreement
    • Electricity bill, water bill, bank statement, gas or telephone bill of shareholders and directors
    • Electricity bill, water bill, bank statement, gas or telephone bill of the registered office address
    • No objection certificate is needed from the owner of the registered office

    Procedure For Micro Finance Company Registration


    Details given by you will be checked and then we will apply for name approval.


    Director Identification Number is a Unique Number that is given to Existing Directors of Incorporated Companies.


    File for Incorporation Certificate will be done with CIN, PAN & TAN.


    Apply for PAN & TAN as they will be needed for opening a bank account.

    What is Included In Our Package?

    DIN for 3 Directors
    Digital Signature For 3 Directors
    Name search & approval
    Registration Fees
    Company PAN Card

    Frequently Asked Questions

    What is a microfinance company?
    A microfinance company is basically a type of financial institution which provides small-scale financial services in the form of loan, credit or savings. These companies are introduced to ease the credit system for small businesses as they don’t get a loan from banks due to their complex process.
    How to get a microfinance company registered?
    1) File Name Approval Application 2) Apply for DIN & DSC 3)Certificate of Incorporation 4) PAN & TAN Application
    Which documents are required to register microfinance companies?
    -Copy of PAN Card -Aadhar Card -Address Proof (Bank Statement, Mobile Bill, Telephone Bill), -Passport Size Photo -Ownership Proof (Electricity bill etc) -Utility Bill (Gas bill, Electricity bill) -NOC(Download format)/p>
    What are the benefits of registering a microfinance company?
    -It benefits in fostering self-reliance and entrepreneurship. -Constant and smooth access to funding. -High-grade overall loan repayment rate in correlation to traditional bank
    What is the registration fee of the Microfinance company?
    The starting registration fees for Microfinance Company is Rs.1,190,000/-
    Can Micro Finance Company Registration provide loans for the personal use of borrowers?
    Yes, the loan can be provided for the personal purpose of the borrowers by Microfinance companies, but still the aggregate amount cannot exceed 30% of the total loan.

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