Micro Finance Company

Work Includes:

✅ Microfinance Company Registration – Legal incorporation under Section 8.
✅ Loan Application Drafts with Terms & Conditions – Legally compliant loan agreements.
✅ Employee Hiring Agreement – Contracts for staff recruitment.
✅ Agent Hiring Agreement – Legal agreement for microfinance agents.
✅ Designated Staff Hiring Agreements – Customized agreements for:

• Manager
• HR Manager
• Credit Manager (With defined roles & responsibilities).
• Other Special Recruitments as per business requirements.

Note: Additional compliance services and ongoing legal support are available upon request.

Microfinance Company Registration – Start Your Microfinance Business Legally

Empower Small Businesses & Communities with a Legally Registered Section 8 Microfinance Company

A Section 8 Microfinance Company is a non-profit financial institution registered under the Companies Act, 2013 to provide microloans and financial assistance to low-income individuals, small businesses, and self-help groups (SHGs) without the need for RBI approval. This is a cost-effective alternative to an NBFC-MFI, allowing social entrepreneurs to contribute to financial inclusion and community development.

At “Noble India Filings”, we specialize in Section 8 Microfinance Company Registration, ensuring a smooth and legally compliant process to help you start your microfinance operations seamlessly.

Why Register a Section 8 Microfinance Company?

✔ No RBI Approval Required – A Section 8 company can provide small loans without RBI registration.
✔ Minimal Capital Requirement – No minimum capital requirement; register with a low investment.
✔ Social Impact & Financial Inclusion – Helps in poverty alleviation, women empowerment, and rural

       development.
✔ Legal Recognition & Credibility – Operate under a structured legal framework with a proper      

       compliance system.

Eligibility Criteria for Section 8 Microfinance Company Registration

✔ Must be registered as a Non-Profit Company (Section 8) under the Companies Act, 2013.
✔ Objectives must include promoting financial empowerment, providing microloans, and supporting

       small businesses.
✔ At least two directors (for Private Limited) or three directors (for Public Limited) are required.
✔ 100% of profits must be reinvested in social welfare and financial inclusion activities.
✔ Cannot distribute dividends or profits to its members.

Types of Microfinance Loans Provided by Section 8 Companies

🔹 Self-Help Group (SHG) Loans – Funding for SHG members to promote entrepreneurship.
🔹 Daily/Weekly Loans – Short-term loans for small vendors, traders, and daily earners.
🔹 Income-Generating Loans – Loans for women entrepreneurs and small businesses.
🔹 Consumer Loans – Small credit for mobile phones, household items, or basic needs.
🔹 Emergency Loans – Financial assistance during medical or financial crises.

Step-by-Step Process for Section 8 Microfinance Company Registration

Step 1: Name Approval & Digital Signature (DSC & DIN)

🔹 Choose a unique company name and obtain Director Identification Number (DIN) & Digital Signature

       Certificate (DSC) for directors.

Step 2: Section 8 License Application

🔹 Prepare necessary documents and apply for a Section 8 License from the Ministry of Corporate Affairs.

Step 3: Company Incorporation

🔹 File incorporation documents (MoA, AoA) with the Registrar of Companies (ROC).

Step 4: PAN, TAN & Bank Account Opening

🔹 Obtain PAN & TAN and open a dedicated corporate bank account.

Step 5: Compliance & Tax Exemption Registration

🔹 Register under GST, FCRA (if receiving foreign funds), and other applicable laws.

Step 6: Start Microfinance Operations

🔹 Begin providing small loans, support community enterprises, and manage financial inclusion activities.

Documents Required for Section 8 Microfinance Company Registration

📌 PAN & Aadhaar Card of directors.
📌 Director’s Address Proof (Bank Statement, Electricity Bill, etc.).
📌 Passport-size Photographs of directors.
📌 Registered Office Address Proof (Rent Agreement & NOC from the owner).
📌 MOA & AOA Drafting – Stating the objectives of the microfinance activities.
📌 Projected Financial Plan & Social Welfare Objectives.

Compliance Requirements for Section 8 Microfinance Companies

✔ Annual Filing with ROC (MCA Form AOC-4 & MGT-7) – Mandatory financial reporting.
✔ GST Filing (if applicable) – Monthly, quarterly, and annual GST returns.
✔ Income Tax Returns (ITR) Filing – Annual tax compliance.
✔ Audit & Financial Transparency – Maintain proper financial records and annual audits.
✔ Funding & Loan Documentation – Keep proper records of loans disbursed and recovered.

Why Choose Us for Section 8 Microfinance Company Registration?

✅ End-to-End Registration Support – From name approval to final incorporation, we handle everything.
✅ Expert Guidance on Compliance & Legalities – Ensure smooth MCA, Income Tax, and GST compliance.
✅ Quick & Hassle-Free Process – Registration in just 20–25 working days.
✅ Affordable & Transparent Pricing – No hidden charges.
✅ Post-Registration Support – Help in loan structuring, compliance, and tax exemptions.

FAQs on Section 8 Microfinance Company Registration

Q1: Can a Section 8 Microfinance Company give loans without RBI approval?

✅ Yes! Unlike NBFC-MFIs, Section 8 Companies do not require RBI registration for providing small loans.

Q2: How much capital is required to start a Section 8 Microfinance Company?

✅ No minimum capital requirement is specified by law, making it a low-cost alternative to NBFCs.

Q3: Can a Section 8 Microfinance Company raise funds?

✅ Yes! It can receive donations, grants, CSR funds, and government subsidies.

Q4: Can profits from microfinance operations be distributed among members?

🚨 No! 100% of the profits must be reinvested in financial inclusion and social activities.

Q5: How long does it take to register a Section 8 Microfinance Company?

✅ The registration process usually takes 20-25 working days, depending on approvals.