FEATURES OF MICROFINANCE COMPANY REGISTRATION
FEATURES YOU CAN'T RESIST
SEPARATE LEGAL ENTITY
Just like any other company, Microfinance Section 8 Company, its directors and shareholders are distinct persons and have a separate identity Thus, their liabilities in the company are limited to the shares of the company held by them.
LOANS TO SMALL BUSINESS HOUSES AND TO POORS FOR DWELLINGS
Section 8 Microfinance Company Registration in India provides unsecured loans to small businesses of upto Rs. 50,000/- & to poor people for their dwelling residence of upto Rs. 1,25,000/- .
NO PRIOR RBI APPROVAL
Unlike any other Micro Finance Companies, the Micro Finance Section-8 Company is not required to take any prior RBI approval/ registration. However, Micro Finance Section-8 Company is also governed by the RBI guidelines after its incorporation.
NO MINIMUM CAPITAL REQUIREMENT
The RBI has exempted the Micro Finance Company to have any minimum paid-up capital requirements which means, you can start your microfinance business with nominal amount.
UPLIFTMENT OF WEAKER SECTION OF THE SOCIETY
Microfinance Company is incorporated with the objective to provide short term credit facilities to that section of society which is either having no access to the banking channels or is ineligible to meet the hefty banking criteria.
NO MINIMUM CAPITAL REQUIREMENT
The RBI has exempted the Micro Finance Company to have any minimum paid-up capital requirements which means, you can start your microfinance business with nominal amount.
MINIMUM COMPLIANCES
Microfinance Section-8 Company have the advantage of less legal compliances over the other type of micro finance companies.
STEADY SOURCE OF INCOME
Microfinance Section 8 Company enjoys the benefit of having a steady income in the form of Interest income.
EARN INTEREST UPTO 26% P.A
A Microfinance Section 8 Company can earn interest upto 26% p.a on loans advanced. Thus, it gives an additional edge to the Section 8 Micro FInance Companies over organised banking sector.
SECTION 8 COMPANY REGISTRATION PROCEDURE
MORE SIMPLE THAN IT LOOKS!
1. PREPRATIONS OF DIGITAL SIGNATURE (DSC)
1st we apply for DSCs of all the Directors & members. Digital Signatures are required for signing all the documents while incorporating your Section 8 Micro Finance company.
2. FILING APPLICATION FOR DIRECTOR'S DIN
After successful allotment of directors’ DSCs, the next step is the application of DIN (Director Identification Number). It is the unique number allotted by the MCA to each of the directors of the Section 8 Company.
3. CHOOSING UNIQUE NAME FOR YOUR SECTION 8 COMPANY
Meanwhile applying for your DSCs, we help you in selecting Unique Name for your dream Section 8 Company. This process completes in a single day.
4. PREPARING FORMS AND DOCUMENTS
On the 2nd day, after the approval of the Company’s name, we prepare all the e-forms and other documents. Drafting of MOA & AOA comes under this step.
5. FILING E-FORMS WITH MCA
After completing all the formalities and documentation work, we upload e-forms along with the attachments prepared in step-4 on the MCA portal for approval.
6. ALLOTMENT OF COI, PAN & TAN
The department will allot Certificate of Incorporation for your Section 8 Microfinance Company along with company’s PAN & TAN. You can now open Current Bank Account and start the operations. CONGRATULATIONS…