Section 8 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 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

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 You Can Provide

Section 8 Companies can offer various financial products to support communities.

Self-Help Group (SHG) Loans

Funding for SHG members to promote entrepreneurship and collective growth.

Daily/Weekly Loans

Short-term loans tailored for small vendors, traders, and daily wage earners.

Income-Generating Loans

Loans specifically for women entrepreneurs and small businesses to boost income.

Consumer Loans

Small credit for mobile phones, household items, or basic needs.

Emergency Loans

Financial assistance provided during medical emergencies or financial crises.

Step-by-Step Registration Process

Total Processing Time: Typically 20-25 Working Days

1. Name & DSC

Choose unique name & obtain DSC/DIN for directors.

2. License App

Apply for Section 8 License from the Ministry of Corporate Affairs.

3. Incorporation

File MoA & AoA with the Registrar of Companies (ROC).

4. PAN, TAN & Bank

Obtain PAN, TAN and open a dedicated corporate bank account.

5. Compliance

Register under GST, FCRA (if needed), and other applicable laws.

6. Start Ops

Begin providing loans and managing financial inclusion activities.

Documents Required

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 owner).
MOA & AOA Drafting – Stating the objectives of microfinance activities.
Projected Financial Plan & Social Welfare Objectives.

Compliance Requirements

To maintain legal status, Section 8 companies must adhere to:

Annual Filing (AOC-4 & MGT-7): Mandatory financial reporting to ROC.

GST Filing: Monthly, quarterly, and annual GST returns (if applicable).

Audit & Transparency: Maintain proper financial records and conduct annual audits.

Funding & Loan Documentation: Keep proper records of loans disbursed and recovered.

Our Comprehensive Service Package

Work Includes:

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

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

Why Choose Noble India Filings?

End-to-End Registration Support: From name approval to final incorporation, we handle everything.
Expert Guidance on Compliance: 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 Microfinance Registration

Q1: Can I 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?

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

Q3: How long does registration take?

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

Q4: Can a Section 8 Microfinance Company raise funds?

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

Q5: Can profits be distributed among members?

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

Start Your Microfinance Company Today!

Be a part of India’s financial inclusion revolution. Contact Noble India Filings for Expert Assistance.

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