Section 8 Microfinance Company Registration - Process, Documents, Fees

Section 8 Microfinance companies are financial organisations that provide finances to low-income groups. These companies are introduced to ease the credit system for small businesses as they don't get loan facilities from banks due to their complex process.

Therefore, it is also known as a Micro-credit or Micro-benefit organisation. Microfinance companies are the most convenient business to register that can provide unsecured loans without RBI approval at rates upto 26% p.a.

The compliances of section 8 company as a Microfinance business is same as normal with an addition of filing of MBP-1.

• PAN & Aadhar Card of Both Directors: Both directors must provide a copy of their PAN card and Aadhar card for identity verification and compliance with regulatory requirements.
• Bank Statement with Address Proof (Not Older Than 2 Months): A recent bank statement (not older than two months) from each director must be submitted, showcasing the address proof of the individual.
• Passport Size Photographs: Recent passport-sized photographs of the directors are required for identity and record purposes.
• Email Address & Phone Number: A valid email address and phone number must be provided to facilitate communication with regulatory authorities and clients.
• Utility Bill of the Premises: A utility bill (electricity, water, etc.) in the name of the company or its directors, not older than two months, must be submitted as proof of the company’s registered address.

Step 1: Obtain Digital Signature Certificate (DSC)

To form a company, you must apply for the digital signature certificate of the designated directors of the proposed company. All the documents for Section 8 companies are filed online, and e-forms must be digitally signed. So, the designated directors must obtain their DSCs from certifying agencies.

Step 2: Apply for Name Approval

The next step is to apply for name approval. The name must suggest that it is registered as a Section 8 company. While making the name application of the company, the industrial activity code and object clause of the company have to be defined.

Step 3: File SPICe Form (INC-32)

After the name approval, details concerning the company's registration have to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows

• Details of the company
• Details of members and subscribers
• Application for Director Identification Number (DIN)
• Application for PAN and TAN
• Declaration by directors and subscribers
• Declaration & certification by professional

Step 4: File MoA and AoA with “Finance” Objective

SPICe e-MoA and e-AoA are the linked forms to be drafted when applying for company registration.

• SPICe e-MoA and e-AoA are the linked forms to be drafted when applying for company registration.
• The company must draft the MoA and AoA and file them with the necessary documents.
• MoA is the foundation on which the company is built. It defines the constitution, powers, and objects of the company.
• AoA details all the rules and regulations relating to the company's management.

Step 5: Issuance of Incorporation Certificate

Post-approval of the documents from the Ministry of Corporate Affairs, PAN, TAN & Certificate of Incorporation will be issued from the concerned department.

The total cost of registering a micro-credit/finance company under section 8 registration with professional Utiltites is Rs. 49,999 only all-inclusive.

All applicable taxes are included in the approximately that must be paid as part of the registration fee for a section 8 microfinance company.

Charges applicable for DSC certificate would be paid directly to certifying agencies.

Note: The aforementioned Fees is exclusive of GST.