{"id":14741,"date":"2020-08-13T14:34:15","date_gmt":"2020-08-13T09:04:15","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=14741"},"modified":"2020-08-13T14:34:17","modified_gmt":"2020-08-13T09:04:17","slug":"document-for-registering-microfinance-company-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/document-for-registering-microfinance-company-in-india\/","title":{"rendered":"A Complete Checklist of Document for Registering Microfinance Company in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The adoption of any business model in India requires registration under the relevant authority. Whether you want to commence a manufacturing unit of electronic items or form a finance company, registration is the primary requirement for all business nature. Anyway, in this blog, we will be looking into the document For Registering Microfinance Company.  Microfinance Company is the one-stop destination for the poor and unemployed individuals seeking financial aid without any collateral. Therefore, microfinance companies could be deemed a financial reservoir for those who lack adequate resources to procure funds to meet their basic requirements. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"559\" height=\"361\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-51.png\" alt=\"Document for Registering Microfinance Company\" class=\"wp-image-14742\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-51.png 559w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-51-300x194.png 300w\" sizes=\"(max-width: 559px) 100vw, 559px\" \/><\/figure><\/div>\n\n\n\n<p>People interested in setting up this business model need to go\nthrough a prescribed registration procedure that attracts ample documentation.\nMicrofinance companies can be formed in two ways:-<\/p>\n\n\n\n<ul><li>NBFC governed by the RBI\nregulation <\/li><li>Section 8 companies regulated\nby the Company Act 2013 <\/li><\/ul>\n\n\n\n<p>Given the form of the business models, the documentation for <a href=\"https:\/\/corpbiz.io\/microfinance-company-registration\"><strong>registering Microfinance companies<\/strong><\/a> varies considerably.\u00a0 The given sections would provide a complete briefing on documentations related to the registration of the microfinance companies based on these two business models: <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/\">Micro Finance Company Registration: Complete Process<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Documentation for NBFC-based Microfinance companies <\/h2>\n\n\n\n<p>Document For Registering Microfinance Company as NBFC:-NBFC business\nmodel is more of a legitimate version of the financial entity as most\nthird-part lenders are regarded as NBFCs. If you wish to opt for this business\nmodel to establish a microfinance company, you must provide the following\ndocumentation. <\/p>\n\n\n\n<p><em><strong>Those are as follows:-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Memorandum of Association\nexhibiting the company\u2019s goal, work methodologies, and identity. <\/li><li>Articles of Association\ncontaining the company\u2019s rule, hierarchical information, management details,\nand internal working. <\/li><li>Incorporation certificate\nissued by the Ministry of corporate affairs. <\/li><li>Board resolution copy generated\nduring the AGM in the presence of the board members. <\/li><li>Receipt of the fixed deposit\nissued by the bank. <\/li><li>No Lien certificate* stating\ndetail of net owned fund issued by the bank. <\/li><li>Banker\u2019s confidential report\nbriefly illustrating the company\u2019s track record related to banking activities. <\/li><li>The latest credit report of\ndirectors issued by respective banks showing existing credit information<\/li><li>Director\u2019s net worth\ncertificate certified by a Chartered Accountant. <\/li><li>Documents displaying\nprofessional &amp; academic qualification proof of the directors. <\/li><li>KYC of the existing director<\/li><li>Director\u2019s income proof such as\nreceipt of ITR or bank statement. <\/li><li>Document illustrating working\nexperience of the active directors in the financial sector. <\/li><li>Structure plan of the business\npremises where applicants proposed to conduct the business activities. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Documentation for Section 8 based Microfinance companies <\/h2>\n\n\n\n<p>Document For Registering Microfinance Company as section 8 company:-In case if you want to set up the microfinance establishment under the canopy of section 8 of the <strong><em>company Act 2013<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>, you would need the following documents for registration. <\/p>\n\n\n\n<ul><li>Scanned copy of the PAN card of\nall directors. <\/li><li>Documents regarding the address\nand identification proof of the core members of the establishments i:e\ndirectors and promoters. <\/li><li>Lease deed, rental agreement,\nor property\u2019s ownership documents.<\/li><li>NOC issued by the owner in case\nof the rented property. <\/li><li>Applicable stamp duty as\nmandated by the state<\/li><li>Any other documents as required<\/li><\/ul>\n\n\n\n<p>Setting up an establishment is one of the most significant financial\ndecisions ever made by an individual in a lifetime. To ensure a seamless\nestablishment of an entity, one has to steak around with prescribed\nregistration procedures. One wrong step could push you month\u2019s ways from being\nan authorized entity. Therefore, adopting the right approach is hugely crucial\nfor someone who wants to set up a business entity in the first attempt. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Facts about microfinance companies that worth your attention <\/h3>\n\n\n\n<ul><li>Department of Revenue is\nresponsible for the issuance of a corporate lien certificate*. It typically reflects\nthe liabilities of the entities in the context of corporate tax.<\/li><li>Under the NBFC business model,\nthe applicant needs to furnish MOA, AOA, and Board resolution copy as a part of\nthe documentation for registration of Microfinance Company. <\/li><li>RBI is the governing body that\nregulates the activities of microfinance companies. <\/li><li>The approval process for\nmicrofinance companies is not instantaneous as authority needs some time to\nscrutinize the documents. <\/li><li>Microfinance companies\nprimarily provide financial service to the unprivileged section of society. <\/li><li>Microfinance companies facilitate\nrural employment at a larger scale. <\/li><li>Microfinance companies could\ngenerate significant employment. <\/li><li>Most of the financial lending\nservices at microfinance companies are collateral-free. <\/li><li>Individual with a poor\nfinancial background can easily avail loans from these companies.<\/li><li>Microfinance companies usually\noffer low repayment rates when contrasted with trading lending companies. <\/li><li>Microfinance companies exercise\nharsh repayment protocol for the recovery of their money.<\/li><li>Their interest rate could be\nharsh as compared to other financial institutions.<\/li><li>Microfinance companies usually\ncompromise ethical business practices for the sake of profit and efficiency. <\/li><li>They usually have large loan\nportfolios with undercover conditions that are vicious in nature.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion <\/h2>\n\n\n\n<p>Microfinance companies are more vulnerable to cancellation as far as the registration is concerned. The reason is that the registration for Microfinance firms lures a significant number of documentations that are sensitive in nature. You or company members could possibly make a huge mistake while preparing or arranging these documents for the registration process. In those circumstances, we strongly recommend you hire experts to complete the registration formalities with ease. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/starting-a-microfinance-company-in-india\/\">Easy guidelines for starting a microfinance company in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The adoption of any business model in India requires registration under the relevant authority. Whether you want to commence a manufacturing unit of electronic items or form a finance company, registration is the primary requirement for all business nature. Anyway, in this blog, we will be looking into the document For Registering Microfinance Company. Microfinance [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":14743,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[507],"tags":[871],"acf":{"service_id":"52"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":6674,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14741"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=14741"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14741\/revisions"}],"predecessor-version":[{"id":14750,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14741\/revisions\/14750"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/14743"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=14741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=14741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=14741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}