MicroFinance Company Registration
How to start Micro-Finance Company Registration?
1.Private or Public Limited Company Registration
2.Approval from Reserve Bank of India for starting the business of Micro-Finance
A microFinance company must have a minimum capita of Rs. 5 Crores. However in North east India requirement of minimum capital is Rs. 2 crores, capital is required in these kind of Companies. This amount is to be deposited in a bank account opened in a name of a company as Fixed deposit.
Anyone who wants to register a Micro Finance Company, first and foremost they need to from a Company as per Companies Act, 2013. And after a getting a certificate of incorporation you need to deposit a sum of Rs. 5 Crores or 2 Crores as the case may be as their Fixed deposit by opening a Bank account on the name of the company. After doing all this you need to submit an application to the Reserve Bank of India, in a prescribed format for NBFC-MFI registration along with all the documents. The Application will be submitted online and the Hard Copies of all the documents needs to be submitted in the office of Regional office of Reserve Bank of India. After Receiving all the Documents the Reserve Bank of India will conduct a due diligence. And if the apex court is satisfied with all the documents and the information given is true then it will issue a certificate of commencement of business to the Microfinance Company.
1.Certified true copies of Certificate of Incorporation of Businesses and certificate of commencement of business of the concerned company.
2.Certified copy of up to date Memorandum of Association And Articles of Association.
3.Certified true copies of Board resolution in supporting the registration of the company, along with a declaration that the company will comply with prescribed rules and regulations and compliances that are directed by the Reserve Bank of India.
4.Banker’s report relating to dealing made with the company.
5.An auditor's’ report stating that the applicant compay owns the minimum capital required.
6.Certified copies of educational and Professional qualification of al the Director an Experience certificate i the sector of Financial Services if any.
A Micro finance Company can charge different rate of Interest from different customers, but the variation between the minimum and maximum interest rates shall not exceed 4 percent for individual loans.