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Microfinance Company Registration 4999

Microfinance Company Registration

                   What is an NBFC?

A Non-Banking Financial Company (NBFC) can be defines as a company which is registered under the Companies Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares, stock, bonds hire-purchase, insurance business or chit business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or construction of immovable property.

                  What is MFI?

Micro Finance Institutions(MFI’s) can be defines as a microfinance institution is an organization that offers financial services to low income populations. Almost all give loans to their members, and many offer insurance, deposit and other services. A great scale of organizations are regarded as microfinance institutes. They are those that offer credits and other financial services to the representatives of poor strata of population.

What is the difference between Non-banking finance companies (NBFC’s) and banks?

An often heard question from the laymen is what is the difference between a bank and non-banking finance company? Like for an example- There is a difference between ICICI bank and Mahindra Finance. Yes! Banks and other non-banking financial institutions differ in some functional area.

Banks and NBFCs are basically financial intermediaries. Banks are regulated under the Banking Regulation Act though most of the laws of Companies Act are also applicable to banks. NBFCs are registered under the Companies Act.  Both are regulated by the RBI. Main differences between banks and NBFCs are:

  • Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

  • NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself

  • Bank is a financial institution whose liabilities (i.e., deposits) are widely accepted as a means of payment in the settlement of debt. On the very other hand, on-bank financial intermediaries are those institutions whose liabilities are not accepted as means of payment for the settlement of debt.

  • Banks are termed as creators of credit through money multiplier activity whereas NBFCs are not.

Documents Required

  • Certified copy of up-to-date Memorandum and Articles of Association of the Company.

  • Certified copy of up-to-date Memorandum and Articles of Association of the Company.

  • Banker’s Report in a sealed envelope.

  • Auditors report about receipt of minimum net owned fund.

  • A certificate of Chartered Accountant regarding details of group/associate/subsidiary/holding companies along with details of investments in other NBFCs as shown in the Performa Balance Sheet.

Procedure for NBFC-MFI Registration

1. Company Registration

The first step is to form a new Public Limited Company under the Companies Act.

2. Minimum Net Owned Fund

NOF should be Rs. 500 Lac After the incorporation of a new Company in the form of Equity share capital. The Capital to be raised after incorporation of a company here should be Equity Share Capital and not Preference Share Capital.

3. The Opening of a Bank Accountant

The amount which is received post incorporation of the company shall be deposited in a bank account as Fixed Deposit and its must be free from all aliens.

4. Application to RBI

Application to RBI for Business Operations.

5. RBI

RBI will conduct due diligence and will issue certificate of commencement of business.

 

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Our Pricing

Basic

Rs. 4999/-
inclusive of all fees
  • Micro Finance Institutions(MFI’s) can be defines as a microfinance institution is an organization that offers financial services to low income populations. Almost all give loans to their members, and many offer insurance, deposit and other services. A great scale of organizations are regarded as microfinance institutes. They are those that offer credits and other financial services to the representatives of poor strata of population.

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Documents Required

Documents for Private Limited Company registration

  1. PAN card- All Directors
  2. ID Proof (Aadhar card/DL/Voter ID) of all Directors
  3. Permanent address Proof (Bank Passbook-front page/Latest utility bill)- All Directors
  4. Address Proof of proposed Registered Office of company
    1. If taken on rent then NOC with the utility bill from the owner
    2. If not taken on rent or owned by any other entity then NOC signed by an owner
    3. If owned by Director then sale deed with an electricity bill
  5. Passport size photograph of all directors
  6. Main objects of the proposed company in detail
  7. Four names of the proposed company as per preference
  8. Significance of names of the proposed company
  9. Shareholding proportion
  10. Signed forms (Format provided)

Process to incorporate a Private Limited Company

The process of Private Limited Company registration involves obtaining the Digital Signature Certificate (DSC) & Director Identification Number (DIN), obtaining approval for name, creating and filing of documents with RoC and filing of an application for PAN & TAN. It takes around 15-20 days to complete all the legal formalities to register a Private Limited Company in India. This time period is subject to the time taken by government authorities to process the application.

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  • Incorporation Done: What's Next?
  • Incorporate A Private Limited Company
  • 5 Things To Know Before Incorporation
  • Comparison Between PLC And LLP
  • Annual Compliances For PLC And LLP

Need Help With Registering A Private Limited Company?

Talk to our Legistify's Inhouse Legal Expert for assistance On 011-000-00-000

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Choose the Right Business Type

Compare the features of different business structures to choose the best for your business!

Key Features Sole Properties
Separate Identity
Limited Liability
Transfer of Ownership
Number of Members 2-200 2- Unlimited 1 2-20 1
Perpetual Existence
Tax Benefits Some Many Some Many Few
Foreign Members
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  • How many people can start a Private Limited Company?

    To incorporate a PLC, there must be at least 2 directors and 2 shareholders. The maximum number of directors in a Private Limited Company is 15 and maximum number of shareholders are 200.

  • How much capital is required to start a Private Company?

    It does not require any minimum amount to be infused as capital. There is no legal requisite to present the proof of capital invested at the time of Private Limited Company registration.

  • What is a Digital Signature Certificate (DSC)?

    A Digital Signature Certificate (DSC) is the digital equivalent (that is electronic format) of physical or paper certificates. Like physical documents are signed manually, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.

  • What is Director Identification Number (DIN)?

    A Director Identification Number (DIN) is a unique identification number given to an existing or a potential Director of a company.

  • What is Memorandum of Association (MoA)?

    A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a company to define its relationship with shareholders.

  • What is Articles of Association (AoA)?

    The Articles of Association is a document that contains the purpose of the company as well as the duties and responsibilities of its members defined and recorded clearly. It is an important document which needs to be filed with the Registrar of Companies.

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Jessica

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Kellie

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