The process of micro finance company registration requires the applicant to incorporate a Private Limited or Public Limited Company. After determining the minimum capital required, the application for the microfinance business license must be filed with the relevant regulatory agency. The applicant also needs to submit the necessary permits/licenses before the registration process can begin. The application form must be filled out in its entirety. The following steps will guide you through the process. After the initial steps, you can proceed to the next step of microfinance company registration.
Applicants can choose to register their company under the Companies Act, 2013 or the Societies Act, 1882. The first step to acquiring Micro Finance Company Registration in India is to register under the Companies Act. To do this, you must file the SPICe + Form with the Ministry of Corporate Affairs. After completing these steps, you will need to apply for a license from the Reserve Bank. Once you have the license, you need to obtain the required documentation and submit the form.
In order to obtain a licence from the regulatory body, you need to register as a public or private limited company. For private companies, you need two members and a minimum capital of Rs 1 lakh. For public companies, you must have at least seven members. The next step is to raise net owned funds of Rs 5 crore or more. You can also choose a Section 8 company and register as a Micro Finance Company under the Companies Act, 2013. You must make sure that you have all of the necessary documents to operate your new business.
Once you have all of these documents, you can proceed with the micro finance company registration process. You must open a bank account and deposit a minimum of two cores or five crores. In order to receive a licence from the Reserve Bank, you will need to apply to the Bank for a Section 8 (General) Company. This type of registration is easy to complete and is the most common way to start a Micro Finance Company.
The second step in the Micro Finance Company registration process is to decide what type of Micro Finance Company you will be registering. A Section 8 Microfinance company must meet certain criteria, including a minimum capital of five crore rupees. It should be noted that the registration process of a Microfinance Company in India is much simpler than the registration of a Society or Private Limited Company. A Section 8 is a non-profit entity that is not regulated by the Reserve Bank of India, but must comply with RBI interest rate and processing charges standards.
The third step is to raise the required capital for your Microfinance company. This can be in the form of equity or preference share capital, or can be in the form of a fixed deposit. After the registration process, the company must open a bank account and deposit a fixed deposit. Then, the company must submit an application to the Reserve Bank. To acquire a Section 8 license, an online application must be filed.
The third step in the Microfinance company registration process is to raise the required amount of authorized and paid up capital. This must be either equity or preference share capital, or it can be a fixed deposit. To obtain the registration of a Micro Finance Company, you need to have a fixed deposit of at least five crores and apply to the Reserve Bank of India. Then, the RBI will review your application and issue a certificate of commencement of business.
Once you have deposited the capital in a bank, the next step in Microfinance company registration is to apply for a No-Lien Certificate. This is a government document that allows the company to make loans to people with very low incomes. In the end, the microfinance company registration process involves filling out an application with the RBI. You will receive a reference number from the RBI. Then, you will need to submit the hard copy to the RBI regional offices to have it approved.