Section 8 Microfinance Company Registration

Money is core part or our life, whether we are doing any business or living our standards, it is true that without money nothing is possible.

In our Country, Micro Finance play a vital role, because there are so many small businesses and individual persons, who requires money in small. The problem is that banks and other financial institutions can not help such small businesses and individuals due to non-eligibility or high formalities of documents.

Therefore, social needs does not fulfill and hence the small businesses could not be capable to grow with market and consequently they dissolved.

Section 8 micro finance company is the best solution for all those, who seeks the funding without hurdles. It's objects to provide the credits with the motive of helping people, who really needs money at small level.

Therefore, Section 8 Company is a Social Non-Profit Organization and it is registered under section 8 of Companies Act, 2013. It was earlier known as Section 25 Company as per Companies Act, 1956.

RBI Approval does not require for Section 8 Micro Finance

Section 8 Micro Finance Companies are exempt from RBI License. RBI under its notification RBI/20011-12/384

Ref.DBOD.No.Ret.BC 77/12.06.132/2011-12 has notified that Section 8(earlier known as section 25) Companies are exempted from RBI Licnese.

Section 45-IA, 45-IB and 45-IC of the RBI ACT, 1934 shall not apply to any non-banking financial company which is :

What is the Loan limit on Section 8 Micro Finance Companies

1. Loan Limit is depending upon the basis of rural and urban area. 2. Loan amount will not exceed Rs. 60,000 in the first cycle and Rs. 1,00,000 in subsequent cycles;
3. Total indebtedness of the borrower will not exceed Rs. 1,00,000
4. Tenure of the loan not to be less than 24 months for loan amount in excess of Rs. 30,000 with prepayment without penalty;
5. Loan to be extended without collateral;
6. Aggregate amount of loans, given for income generation, is not less than 50 per cent of the total loans given by the mfis
7. Loan is repayable on weekly, fortnightly or monthly installments at the choice of the borrower.

Advantages of Section 8 Micro Finance Company

List Documents Required for Registration of Section 8 Companies

On the basis of above documents, VAKIL KARO EXPERT will file the Registration documents to ROC and help you to register your Section 8 Micro Finance Company.

PROCEDURE TO REGISTER SECTION 8 MICRO FINANCE WITH "VAKIL KARO" VAKIL KARO EXPERT helps you to register the Section 8 Micro Finance Company with the following procedure ---

1.Application for Name Approval – After collection of Documents, our Expert will file the name approval application by filling "RUN" form at ROC. Once the Name is Approved, it is valid for 20 days from the date of approval.
2. Application for Digital Signatures (DSC) – Our Expert will guide to approve and verify the class -2 Digital Signatures, which is requires for digital signs of ROC Documents.
3. Drafting of MOA & AOA – Drafting of Memorandum of Association and Articles of Association is the essential part of Registration process, and it requires expertise and professional skills. These documents are the core documents of the company, because it contains the objects and activity to be pursued by the company.
4. Drafting of SPICE Forms – SPICE means the Simplified Performa of Incorporation of Company Electronically, it is also the essential work of company registration, because it contains the major details of persons and name of the Company and Activity code of the Company.
5. Submission of Documents at ROC – When all the documents are completed with, VAKIL KARO EXPERT submit all the documents at ROC for the Registration of Company and the Registrar shall issue the Certificate of Registration/ Incorporation (COI) in a specified format. It means the Company is Registered from the date of Certificate issued. IS GST Required for Section 8 Companies ?

Section 8 Company is the Company helping poor people and small businesses and it is formed for social benefits. It provides Credit with in a specified limit. And hence on the Credit Services GST is not applicable.

Why I choose "VAKIL KARO" & why not "OTHERS"

TEN Reasons why you should Choose VAKIL KARO ---

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