{"id":7096,"date":"2020-04-21T11:56:24","date_gmt":"2020-04-21T06:26:24","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=7096"},"modified":"2022-11-16T14:42:11","modified_gmt":"2022-11-16T09:12:11","slug":"micro-finance-company-registration-process","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/","title":{"rendered":"Micro Finance Company Registration: Complete Process"},"content":{"rendered":"\n<p class=\"has-drop-cap\">India is the second-largest growing economy in the world with a huge population. The Private sector Banks and Government Banks cannot open their branches in the remote villages areas. Though the presence of India Banks is increasing, there is still limited reach to the remote regions of our country. In India, the Micro Finance Companies act as a cluster of banking services to meet the financial requirements of low-income people. These Companies are introduced for small-scale businesses that are not able to get loans from banks. The Micro Finance Companies provide financial services like credit, loan, insurance, money transfer, and savings. These financial institutions are a huge support to agricultural and rural development in India. In this article, we will discuss the process of <a href=\"https:\/\/corpbiz.io\/microfinance-company-registration\"><strong><em>Micro Finance Company Registration<\/em><\/strong><\/a>.&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_is_a_Micro_Finance_Company\" >What\nis a Micro Finance Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_are_the_objectives_of_Micro_Finance_Company\" >What\nare the objectives of Micro Finance Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_is_the_role_of_Micro_Finance_Company\" >What is the  role of Micro Finance Company ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_are_the_basic_requirements_for_Micro_Finance_Company_Registration\" >What\nare the basic requirements for Micro Finance Company Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_are_the_different_types_of_Legal_Structure_for_Micro_Finance_Company_Registration\" >What\nare the different types of Legal Structure for Micro Finance Company\nRegistration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_is_the_process_of_Micro_Finance_Company_Registration\" >What\nis the process of Micro Finance Company Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_are_the_documents_required_for_Micro_Finance_Company_Registration\" >What\nare the documents required for Micro Finance Company Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#What_are_the_advantages_of_Micro_Finance_Company\" >What\nare the advantages of Micro Finance Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/micro-finance-company-registration-process\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Micro_Finance_Company\"><\/span>What\nis a Micro Finance Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nMicro Finance Company is also known as Micro Finance Institution. The Micro\nFinance Company is a type of company that provides financial services like\ncredit, loan, savings, insurance, and money transfer to small enterprises and\nsmall businesses. These Companies offer microcredits to a special type of borrowers.&nbsp; &nbsp;<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>The\nMicro Finance Company is a non-deposit taking Non-Banking Financial Company\n(NBFC) (other than Section 8 Company registered under Companies Act, 2013),\nwhich<\/em><\/strong> <strong><em>performs banking at small scale\nas the other banks do.<\/em><\/strong> The existence of Micro Finance Company is at a\nvery small scale as compared to NBFC. The Micro Finance Company provides\nlending of financial services to economically weaker sections of the society\nwho do not have regular facilities of banking.&nbsp;\n&nbsp;&nbsp;<\/p>\n\n\n\n<p>The individuals who have no access to\ncapital, Micro Finance Company are the solutions for the individuals. The Micro\nFinance Company helps individuals to become stable financially and work for\nbuilding a better lifestyle. <strong><em>The sectors who can opt the solution of Micro\nFinance Company to increase and improve production are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Small-scale\nbusinesses<\/li><li>Artisan Business<\/li><li>Agricultural\nActivities<\/li><li>Professional and\nTransport Trades<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_objectives_of_Micro_Finance_Company\"><\/span>What\nare the objectives of Micro Finance Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nobjectives of the Micro Finance Company are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>To offer banking services at small monetary amounts<\/li><li>To increase in participation of women in generating sustainable livelihood<\/li><li>To provide access to quality healthcare<\/li><li>To make people with low-income self-sufficient<\/li><li>For low-income people enrichment and increase in the mode of livelihood<\/li><li>To offer financial and banking assistance to small-scale enterprises which cannot afford any collaterals<\/li><li>To  create an opportunity for self-employment for low-income people<\/li><li>To provide financial and banking support to individuals who work in varying trades like fishing, carpentry, transportation, etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_role_of_Micro_Finance_Company\"><\/span>What is the  role of Micro Finance Company ?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The role of Micro Finance Company are as follows:<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"576\" height=\"366\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-78.png\" alt=\"role of Micro Finance Company \" class=\"wp-image-7118\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-78.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-78-300x191.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Funding for&nbsp;Sustainable&nbsp;Living<\/h3>\n\n\n\n<ul><li><strong><em>The Micro Finance Company creates opportunities for the underprivileged section of society to improve the living standards and become entrepreneurs.<\/em><\/strong> These Companies provide loans without any collaterals, which creates more flexible opportunities for initiating new business.&nbsp; <\/li><li>The Micro Finance Company helps the following individuals to improve the standard of living: <\/li><\/ul>\n\n\n\n<ol><li>Villagers<\/li><li>Indigent Women<\/li><li>Low-income families<\/li><li>Economically-weaker Population<\/li><li>Small Entrepreneurs <\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Provides\nBetter&nbsp;Loan&nbsp;Repayment&nbsp;Rate<\/h3>\n\n\n\n<ul><li><strong><em>As compared to the\ntraditional lenders, the interest rate of Micro Finance Company loans is lower.<\/em><\/strong> The default in payment of the loan by borrowers is a rare occurrence.\nHence. To eliminate poverty, the loan provided by Micro Finance Company acts as\na logical choice for many underprivileged people.&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Provides Opportunity&nbsp;Savings,&nbsp;Future  Investment&nbsp;and Educate&nbsp;Children <\/h3>\n\n\n\n<ul><li><strong><em>The increase in\npoverty leads to eliminate the cost of education for many individuals. The\nloans provided by Micro Finance Company increase the stability of the\nlivelihood of common people and also increases the savings of the individuals.<\/em><\/strong> Hence, through savings, individuals can create several opportunities\nfor better education, health care, and future investments.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Generates&nbsp;Job&nbsp;Opportunities<\/h3>\n\n\n\n<ul><li><strong><em>The Micro Finance\nCompany provides lendings to individuals, which helps individuals to create\nbusinesses and which leads to the creation of job opportunities<\/em><\/strong>. <\/li><li>The increase in\nlabor increases the productivity and stability of income. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_basic_requirements_for_Micro_Finance_Company_Registration\"><\/span>What\nare the basic requirements for Micro Finance Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nbasic requirements for Micro Finance Company Registration are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The Micro Finance\nCompany should maintain 85% of qualifying assets. <\/li><li>The Reserve Bank of\nIndia (RBI) approval is mandatory for commencing of business affairs of Micro\nFinance Company<\/li><li>The Micro Finance\nCompany should maintain a minimum paid-up capital of 5 crore Rupees. In\ncontrast, the Micro Finance Company in north-eastern states requires\nmaintaining a minimum paid-up capital of 2 crore Rupees.&nbsp; &nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_different_types_of_Legal_Structure_for_Micro_Finance_Company_Registration\"><\/span>What\nare the different types of Legal Structure for Micro Finance Company\nRegistration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The different type of legal structure for Micro Finance Company Registration are as follows:<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"576\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-76.png\" alt=\"Legal Structure for Micro Finance Company Registration\" class=\"wp-image-7098\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-76.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-76-300x175.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">NBFC-MFI<\/h3>\n\n\n\n<ul><li><strong><em>The Registration of\nNBFC-MFI is done as per Companies Act, 2013 with the RBI (Reserve Bank of\nIndia). <\/em><\/strong><\/li><li><strong><em>The minimum capital\nrequired for Registration from RBI is 5 crore Rupees, but in the case of north-eastern\nstates 2 crore Rupees is the minimum capital requirement. <\/em><\/strong><\/li><li>The NBFC-MFI is a\nnon-deposit taking NBFC which have not less than 85% of its assets as\nqualifying assets. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Societies\n<\/h3>\n\n\n\n<ul><li><strong><em>The <\/em><\/strong><em><strong>Registration<\/strong><\/em><strong><em> is done as per Society registration Act, 1860.<\/em><\/strong><\/li><li>There is no minimum requirement of paid-up capital under Societies. <\/li><li>Societies are non-commercial organizations which are formed to promote objects like science, culture, art, religion, etc. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Trust<\/h3>\n\n\n\n<ul><li><strong><em>The Registration is\ndone as per the Indian Trust Act, 1882.<\/em><\/strong><\/li><li>There is no minimum\nrequirement of paid-up capital under Trust.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Section\n8 Company<\/h3>\n\n\n\n<ul><li><strong><em>The Registration of Section 8 Company is sone under the Companies Act, 2013.<\/em><\/strong><\/li><li>The <a href=\"https:\/\/corpbiz.io\/section-8-company-registration\"><strong><em>Registration of Section 8 company<\/em><\/strong><\/a> is very easy and does not require a minimum paid-up capital for Registration as Micro Finance Company.<\/li><li>Section 8 Company is registered for not-for-profit or charitable purposes like art, commerce, science, sports, education, charity, religion, social welfare, environment protection, or any other subject. The profit or any other income is applied for promoting the main object of the company. The members of Section 8 company are not paid any dividend.&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Co-operative\nSocieties<\/h3>\n\n\n\n<ul><li><strong><em>The Registration is\ndone as per the Co-operative Societies Act, 2002.<\/em><\/strong><\/li><li>There is no requirement\nof minimum paid-up capital for Co-operative Societies. <\/li><li>It is a voluntary\nassociation of individuals to meet the common social, economic and cultural\nneeds and aspirations through a democratically and jointly owned enterprise. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_process_of_Micro_Finance_Company_Registration\"><\/span>What\nis the process of Micro Finance Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The process of Micro Finance Company registration is as follows:<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"580\" height=\"276\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-77.png\" alt=\"process of Micro Finance Company Registration\" class=\"wp-image-7099\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-77.png 580w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/04\/image-77-300x143.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Registration of Company<\/h3>\n\n\n\n<ul><li><strong><em>The Registration of\nCompany is done under the Companies Act, 2013.<\/em><\/strong> The company should be registered either as a Public Limited company or\nPrivate Limited Company. The initial capital requirement for Registration is\n1,25,000 Rupees.&nbsp;&nbsp;&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Raising\nof Capital<\/h3>\n\n\n\n<ul><li>The paid-up, as well as the authorized capital, is raised. <strong><em>The\nraising of capital to 5 crore Rupees or 2 crore Rupees is decided based on the\ncase.<\/em><\/strong> The amount of capital raised should be done only through the\nEquity Share Capital. The capital cannot be raised through Preferential Share\nCapital. The possibility of raising capital from Preference Share Capital is\nruled out from the step where the account is opened in Bank.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Opening of Account in Bank <\/h3>\n\n\n\n<ul><li><strong><em>The amount received by the company after the Incorporation of Company should be deposited in the bank account as Fixed Deposit.<\/em><\/strong> Subsequently, the Bank provided a certificate of no lien to the applicant. The certificate of no lien should be attached to an application. After attaching the application with the no lien certificate, it should be submitted to the Reserve Bank of India (RBI). &nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Application\nSubmission with RBI<\/h3>\n\n\n\n<ul><li>All the certified copies are submitted with reserve Bank of India (RBI) for carrying business operations of Micro Finance Company. The certified copies of the following documents are required:<\/li><\/ul>\n\n\n\n<ol><li>A true certified copy of Certificate of Incorporation of Company;<\/li><li>A true certified copy of an extract of the main object clause in Memorandum\nof Association (MoA);<\/li><li>A true certified copy of Fixed Deposit Receipt provided by Bank;<\/li><li>A true certified copy of Bankers Certificate of no lien in relation to\nNet Owned Fund by the Company;<\/li><li>A true certified copy Bankers Report.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Filing of Application Online<\/h3>\n\n\n\n<ul><li><strong><em>An online application will be filed with Reserve Bank of India (RBI) for\nMicro Finance Company Registration.<\/em><\/strong> After the application for Registration is filed\nwith RBI, the company will get a Company Application Reference Number\n(CARN).&nbsp;&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Submission of Hard Copy with RBI<\/h3>\n\n\n\n<ul><li><strong><em>After filing of application online, a hard copy of the application along with all the required documents should be submitted with the regional office of RBI (Reserve Bank of India).<\/em><\/strong><\/li><li>After receiving the hard copy of the application, <strong><em>the RBI will conduct <\/em><\/strong><em><a href=\"https:\/\/corpbiz.io\/due-diligence\"><strong>Due diligence<\/strong><\/a><\/em>.<\/li><li>Once RBI is satisfied, a certificate of commencement of business will be issued to the Micro Finance Company. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_Micro_Finance_Company_Registration\"><\/span>What\nare the documents required for Micro Finance Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nnecessary documents for Micro Finance Company Registration are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>A minimum of 2 people\nare needed for the Registration of Company; <\/li><li>A latest passport size\nphotographs of all Directors\/Promoters;<\/li><li>A copy of PAN of all\nDirectors\/Promoters;<\/li><li>Digital Signature\nCertificate (DSC) of Directors;<\/li><li>Directors\nIdentification Number (DIN) of Directors;<\/li><li>A copy of Identity\nProof like Passport, Aadhaar Card, Voter ID;<\/li><li>A copy of documents of\nproperty ownership;<\/li><li>A copy of address proof\nlike Electricity Bill, Bank Statement, Telephone Bill;<\/li><li>A copy of Rent\nAgreement if the premises are on rent;<\/li><li>A true certified copy\nof the certificate of Incorporation of Company;<\/li><li>A true certified copy\nof Memorandum of Association (MoA) and Articles of Association (AoA);<\/li><li>A copy of Banker\u2019s\nReport<\/li><li>&nbsp;A copy of Board Resolution regarding the\nproposed Micro Finance Company Registration;<\/li><li>Report of Auditor\ndeclaring the minimum net capital owned by the applicant;<\/li><li>A true certified and\nsigned copy of the declaration of educational and professional qualifications\nof all proposed Directors of Micro Finance Company;<\/li><li>A duly signed\ncertificate from CA (Chartered Accountant) of Company regarding the detailed\nlist of all the holding, group, subsidiary, associate Companies. The list\nshould be attached to the particulars of all the investments made in other\nNon-Banking Financial Companies (NBFC&#8217;s).<\/li><li>Any other documents as\nrequested.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_Micro_Finance_Company\"><\/span>What\nare the advantages of Micro Finance Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nadvantages of Micro Finance Company are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The Micro Finance Company promote socio and economic growth of the economically weaker sections of the society. <\/li><li>The Micro Finance Company helps in eliminating poverty from the society.<\/li><li>The approval of RBI is not needed if the company is registered as a non-profit Company.<\/li><li>There is no need for minimum capital requirements if the company is registered as a non-profit Company.<\/li><li>The loan repayment rate is better than the traditional banks.<\/li><li>The Micro Finance Company helps in meeting the basic credit needs of such a huge population. The different ranges of services provided by these companies are consumer loans, business loans, housing loans, working capital loans, emergency loans. <\/li><li>The focus of Micro Finance Company is to build a financial system for the unemployed and poor people of the society.<\/li><li>The main aim is to make permanent financial institutions for economically weaker sections of society and try to attract domestic deposits from people and then recycle them and provide as loans. <\/li><li>The compliance with the RBI standards is mandatory even if the Micro Finance Company Registration is not required under the Reserve Bank of India (RBI).<\/li><li>Section 8 Company requires no approval from RBI but will follow all the compliances of the <strong><em>Companies Act, 2013<\/em><\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/companies-act\/companies-act-2013.html\"><strong>[1]<\/strong><\/a><\/sup>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Micro Finance Company acts as medium growth of financial Market. These Companies serve as the most important source of finance for the economically weaker sections of society. These companies provide financial services like loans, credit, insurance, etc., to the people living in remote areas of India. There is an increase in the number of such companies these days. The Micro Finance Company Registration process is time-taking and long-lasting. We at <a href=\"https:\/\/corpbiz.io\/\"><strong><em>Corpbiz<\/em><\/strong><\/a> have experienced professionals to help you in enabling Micro Finance Company registration. Our team of professionals will guide you with the process of Registration. You just have to provide us with all the essential documents required for obtaining Micro Finance Company registration. Our professionals will assure successful and timely completion of your work. We aim to provide quality services to our clients to strengthen our bond with clients instead of focusing on monetary benefits.<\/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\/types-of-nbfcs-in-india\/\">\nTypes of NBFCs in India \u2013 An Overview<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India is the second-largest growing economy in the world with a huge population. The Private sector Banks and Government Banks cannot open their branches in the remote villages areas. Though the presence of India Banks is increasing, there is still limited reach to the remote regions of our country. In India, the Micro Finance Companies [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":7100,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[507],"tags":[508],"acf":{"service_id":"52"},"authorName":"Sakshi Sharda","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/sakshi-sharda.jpg","authorDescription":"Sakshi Sharda has done BBALLB(HONS) and holds a strong knowledge on the matters pertaining to finance and law. From the past one year she is working as a legal advisor and in her leisure time she works on improvising her knowledge. Sakshi is spreading her knowledge by writing for Corpbiz.","postViews":10665,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7096"}],"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\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=7096"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7096\/revisions"}],"predecessor-version":[{"id":50748,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7096\/revisions\/50748"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/7100"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=7096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=7096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=7096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}