microfinance company registration
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The means m of a can broadly be classified into 2 sections:
Microfinance companies are the financial institutions that give small-scale financial services in the form of savings, loans, and credit. Microfinance Company is also known as a Micro Finance Institution. It is a kind of non – deposit acquiring NBFC. For NBFC registration you can visit our website legalraasta. It gives small financial assistance to people with low income and in rural and semi-urban areas.
Micro Finance Companies are suitable to give a loan or credit of approx. Rs 50,000 in a rural area and Rs. 1,25,000 in urban areas to people with the low-income group and small entrepreneurs. Without charging any marginal money or guarantee security. It can give loans at inexpensive rates directed by the RBI and central government. They are a big support to rural and agricultural development plus income and employment creation.
Anyone who wants to register a Microfinance company requires to register a company first under the Companies Act, 2013. Once the company is registered and you have received certificates of incorporation under the Companies Act, 2013 you require to open a bank account in the name of the company and deposit a number of Rs.2-5cores as fixed deposit in the account.
After depositing the amount of fixed deposit you require to create a proper application to RBI in the directed format for NBFC – MFI Registration, along with all the detailed documents. The application will be filed online and hard copies of all documents will be presented to the regional office of RBI. After getting the application and all the essential documents the RBI will handle due application. If the bank is convinced with the application and the documents, it will pass on the Certificates of the starting business to the Microfinance company.
For Microfinance Institutions in India, RBI has formed a policy structure in order to render assured legitimacy. Here are the following privileges of Microfinance company registration :
The procedure to register a Micro Finance Company is compact as it includes the license and certificate from RBI. Since RBI is included in this process it can take a month to complete it.
Though, the license RBI is so important. So, let us follow the procedure in brief:
This is the first step to register the MFI company in India. It can be a public limited company or a private limited company. Moreover, originally, a company can be registered with Rs.1 lakh capital.
This is the next step to boost the share capital with both authorized and Paid up to Rs.2 Crores. This is because to register an NBFC in India, the least net worth needed is Rs.2 crore.
After establishing the capital amount, the following step is to put the sum of Rs.2 crore in Fixed Deposit and receive a certificate of no charge from the bank. This shall be added to the application when filed with the RBI.
Fulfill the demanded list for RBI registration. The demand for Micro Finance Company Registration is as follows:
Fill the online application for NBFC registration as a MIF. Once the online application is registered, the company receives a Company Application Reference Number.
Once the application is filed, a hard copy of the application with all the essential documents are to be transferred to the regional office of the RBI.
The following are the essential documents required for all directors and shareholders MIF registration :
For further more information regarding NBFC Registration, Nidhi company registration, Directions for NBFC-MFI you can visit our website: Legal Raasta.
Either give us a call on +91 850008585 or email us at contact@legalraasta.com. You can also download our app click on this link- https://play.google.com/store/apps/details?id=com.legalraasta.www.legalraasta_gst
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NBFC Micro Finance Institution Requirements & Registration
