1. Small Loans:
   • For rural areas: Up to Rs. 50,000.
   • For urban areas: Up to Rs. 1,25,000.
2. Ease of Registration:
   • Section-8 companies under the Ministry of Corporate Affairs (MCA) offer the easiest registration path.
3. No Collateral Required:
   • Loans are granted without the need for collateral, ensuring accessibility for low-income groups.
4. Dual Structure:
   • Registered with RBI: Companies that require RBI approval.
   • Non-Profit Type: Companies registered under Section 8, exempt from RBI approval.

Eligibility for Microfinance Registration

Microfinance Companies cater to:

• Agricultural activities.
• Small-scale enterprises.
• Artisanal businesses.
• Professional and transportation trades.

Benefits of Starting a Microfinance Company

1. Promoting Socio-Economic Growth:
   • Encourages sustainable development and supports self-help groups.
2. Access to Funding:
   • Addresses the credit requirements for consumer loans, business capital, emergency needs, housing, and more.
3. No RBI Approval Needed:
   • Section 8 companies do not require RBI approval, simplifying the registration process.
4. Affordable Services:
   • Offers financial systems to the underprivileged with reasonable loan terms.
5. Tax Benefits:
   • Section 8 companies enjoy multiple tax advantages.
6. High Repayment Rates:
   • Ensures better repayment rates compared to conventional banks.
7. Promotes Entrepreneurship:
   • Fosters self-employment and business development.
8. Separate Legal Entity:
   • Operates independently, ensuring better credibility and legal protection.
9. Extended Reach:
   • Targets rural and underserved populations effectively.

Mandatory Documents for Registration

1. Personal Identification:
   • PAN card of shareholders and directors.
   • Aadhaar card, voter ID, passport, or driving license.
2. Proof of Address:
   • Electricity bill, water bill, gas, or telephone bill (not older than 2 months).
3. Photographs:
   • Passport-sized photographs of directors and shareholders.
4. Property Documents:
   • Property papers (if owned) or rent agreement (if rented).
5. NOC:
   • No Objection Certificate from the property owner.

Why Choose FilingRaasta for Microfinance Registration?

At FilingRaasta, we simplify the process of registering your Microfinance Company. Our package includes:

• DIN & DSC for Directors
• Name Search & Approval
• MOA & AOA Drafting
• PAN & TAN Application
• Compliance Services
• EPFO & ESIC Registration

Types of Legal Structures for Microfinance Companies

Steps to Register a Microfinance Company

1. Obtain DSC and Apply for Name Approval:
   • Secure the Digital Signature Certificate (DSC) and apply for name approval through RUN (Reserve Unique Name) on the MCA portal.
2. Apply for DIN:
   • Obtain the Director Identification Number (DIN), a unique identifier for directors.
3. Certificate of Incorporation:
   • File incorporation documents with all required attachments such as MOA, AOA, and declarations. Once approved, you will receive a Certificate of Incorporation.
4. Post-Incorporation Activities:
   • Apply for PAN and TAN.
   • Open a bank account to commence operations.