What is a Microfinance Company?

A Microfinance company is an organization that offers a range of financial services to low-income businesses including credit facilities, deposit & insurance services. NABARD defines a microfinance company as the Provision of thrift, credit & other financial services and products of very small amounts to the low-income businesses in rural, semi-urban and urban areas to meet their specific financial needs. Only Non-Banking Finance Companies can be setup as Microfinance Companies with the prior approval of the Reserve Bank of India.

 

Eligibility for Registration of Microfinance Company

A person/association of people proposed to be registered as a Microfinance Company has as its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity and protection of the environment or any such other objects.

Minimum two people are required for registration of Microfinance Company/Section-8 Company, you are eligible to register a company/firm in India, if you are Indian origin, Non-Resident Indian (NRI), Person of Indian Origin (PIO), Overseas Citizenship India (OCI), with a proposal to offer unsecured loan of ₹50,000 to small business and loan up to ₹1.25 lakh to dwelling residence and it should be a non-profitable organization (Trust, NGO, Society & Company).

 

Mandatory Requirements for Registration of Microfinance Company

1. 1^st The applicant shall approach their Chartered Accountants to apply for a Digital Signature Certificate (DSC) and Directors Identification Number (DIN).
   
2. Please find a suitable company name and make sure to check for the name availability on MCA portal.
   
3. Please make sure to select names that end with the words like Sanstha, Foundation, Association, Federation, Chambers, Microcredit etc, the applicant has to check with a different name combination in case of the provided name is already registered.
   
4. It is advisable to generate five different names for easy processing.
   
5. Once the company name is fixed, please save the reference number for name approval and then consult your CA to draft a Memorandum of Association (MOA) & Articles of Association (AOA).
   
6. Once the above mentioned steps are complete the applicant is ready with DSC, DIN, Company Name, MOA & AOA to register.
   
7. Please complete the application form for registration.
   
8. The applicants shall complete the application form on their own or take the help of a CA & attach the entire required document as per our Required Documents section.
   
9. Please scan the required documents and keep them ready to apply on MCA portal.
   

 

Required Documents for Registration of Microfinance Company

1. Application form.
   
2. Copy of PAN of all Promoters/Directors.
   
3. Directors/Promoters Residence proof (ration card/bank statement/telephone bill/electricity bill/aadhaar card).
   
4. Directors/Promoters Identity proof (voter id card/passport/aadhaar card/driving licence).
   
5. Photograph of all Directors/Promoters.
   
6. Proof of ownership of registered office or rental agreement for the same.
   
7. No Objection Certificate from the owner.
   
8. Applicable stamp duty as mandated by the state.
   
9. Document evidencing payment of fee if any.
   
10. Copy of MOA & AOA.
    
11. No Objection Certificate from Directors/Promoters.
    
12. Aadhaar card of Directors/Promoters.
    
13. Other documents will be drafted by professional (CS/CA).
    

 

Microfinance Company Registration in Bangalore

To register online please follow the below following steps:

1. Please visit the MCA portal for register a company.
   
2. Please click on Sign In option provided on the top right corner to get the login page.
   
3. Please enter the User Id & Password to login on MCA portal (if you are a new user then click on Register option to get the New User Registration page & enter the all details and click on the Create My Account option).
   
4. After login please click on the MCA Services option on menu bar and select the Company Services option and click on SPICe+ to reach the dashboard page.
   
5. Please select the New Application option button to reach the SPICEe+ Part-A page.
   
6. The applicant shall select the Section-8 Company option from the drop-down list of Type of Company option and upload the all required documents at the prompted space and click on the Auto Check button to see whether details are entered correctly.
   
7. Now please click on the Save button to get a message that SPICe+ Part-A is saved successfully and click on Submit button.
   
8. If the Microfinance company name allocation has not been done previously then click on Submit for Name Reservation button to get the name allotted and then proceed, otherwise click on Proceed for Incorporation button to get the SPICe+ Part-B page & complete the page prompts as appropriate and then click on Save & Continue button.
   
9. Now enter the Subscriber & Directors details and click on Save & Proceed button to reach another page.
   
10. The applicant should select the Add/Edit option provided under the D Particulars of Individual option to get the respective page for adding/editing details and click on Continue button to come back to online applying page. Similarly, the applicant should click on other Add/Edit button to complete the page requirements and click on Continue button to come back to the online applying page.
    
11. Now please enter the all details in Stamp Duty page prompts and click on Save & Continue button to reach the PAN/TAN Information page.
    
12. Please enter the prompted details as applicable and click on Save & Continue button to reach the Attachments page.
    
13. Please on the Choose File button and follow the onscreen information to upload the desired documents as per the system requirement.
    
14. Please click on Save & Proceed button after all the required documents uploading successfully.
    
15. The applicant will reach the AGILE-PRO page and enter/select the prompted details & click on Save & Next button to get another set of prompts for AGILE-PRO.
    
16. Please complete the page prompt as appropriate and click on Save & Next button.
    
17. The applicant shall continue to add the details of Directors as per the prompt and click on Save & Next button to reach the attachments page for AGILE-PRO.
    
18. Please click on Choose File button against the respective attachment requirement and upload the documents.
    
19. Please click on Save & Next button to reach the Declaration page after all documents are uploaded successfully.
    
20. The applicant shall click the checkbox by reaching the declarations page & enter the prompted details as appropriate and click on Prescrutiny button to get the Prescrutiny Successful message and click on Submit button.
    
21. The applicant will get an information alert pop-up and click on Ok button.
    
22. Now under File section SPICe+ Part-A, SPICe+ Part-B, AGILE-PRO, SPICe+ AOA, SPICe+ MOA & INC-9 documents will be listed on dashboard page, please click on Download button to download the documents to your local hard disk.
    
23. Please open the downloaded documents & add a Digital Signature to them as appropriate.
    
24. After Digital Signature is added please click on MCA Services in menu bar and select the Upload forms option under the e-Filing session to reach another page.
    
25. Please select the Normal Forms option and click on Browse button to select the Digital Signature added documents one by one.
    
26. Please click on Upload button to upload these documents after all the required documents are added.
    
27. The applicant will reach the Fee for Services page with an information alert pop-up showing a computer generated SRN number as acknowledgment please save it for future reference, the same will be sent to your registered mobile number & email id.
    
28. Please close the pop-up and scroll down & click on Pay Fee Now button.
    
29. Please select your applicable payment mode and click on Submit button to reach another page with information and click on I Accept button.
    
30. The applicant will reach the respective online payment gateway page to make the online payment for this procedure.
    
31. Please save the receipt for future reference after payment made.
    
32. The submitted application will be processed internally.
    
33. Update about the progress/requirement of additional details will be sent to the applicant through message or email.
    
34. All verification and checking of the provided details are satisfactory then application will be granted with the registration of the firm.
    
35. The applicant will get the company incorporation certificate from the MCA as per the business address they mentioned on the application.
    

 

Created & Posted by Jitender Kumar

Intern at TAXAJ

 

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. for any further queries related to this or anything else visit the TAXAJ | Watch all the Informational Videos Here.

 

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