Microfinance Company Registration – Tax Pal Solutions

 Start Your Microfinance Journey with Expert Support

At Tax Pal Solutions, we simplify the process of Microfinance Company Registration in India. Whether you choose an NBFC-MFI or a Section 8 Company, our team ensures compliance with RBI and MCA guidelines, assists with documentation, and helps you launch your venture smoothly.

 Why Register a Microfinance Company with Tax Pal Solutions?

• RBI Compliance Guidance – Full support on regulatory requirements
•  Capital & Net Owned Fund (NOF) Assistance – Clear guidance on funds needed
•  Business Plan & Policy Drafting – Professionally structured documents
•  Legal Structure Selection – NBFC-MFI vs Section 8, choose the best fit
•  Timely Updates – From application to approval, we keep you informed

 Our Trust Ratings:

•  4.6/5 (Google – 6,300+ reviews)
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 What is a Microfinance Company?

A Microfinance Company provides small loans (microcredit) and financial services to people who lack access to traditional banking. These include:

•  Farmers
•  Small artisans
•  Local shopkeepers
•  Women entrepreneurs
•  Daily wage workers

 The core goal: Financial inclusion, poverty reduction, and community upliftment.

Impact Example:
In FY2023, MFIs in India disbursed ₹4.2 lakh crore in loans to nearly 8 crore borrowers, proving their critical role in grassroots growth.

 Objectives of Microfinance Companies

•  Promote Financial Inclusion – Reach unbanked & rural communities
•  Offer Collateral-Free Loans – Simple access to credit
•  Empower Women – Prioritize women borrowers for social impact
•  Group Lending Models – Encourage collective accountability
•  Financial Literacy – Teach borrowers sustainable financial habits

 Legal Structures for Microfinance

 NBFC-MFI (Non-Banking Financial Company – Microfinance Institution)

• Commercial, for-profit entity
• Requires RBI approval
• Needs ₹5 Cr Net Owned Fund (₹2 Cr in NE India)
• Allows large-scale micro-lending

Section 8 Company (Non-Profit Micro-Credit)

• Social impact-driven, non-profit model
• No RBI approval needed (if small-scale)
• No minimum capital requirement
• Eligible for grants, donations & tax benefits

 NBFC-MFI vs Section 8 Company

 Prerequisites Before Registration

•  Company Incorporation – Register under Companies Act, 2013
•  Directors – At least 2, one must be an Indian resident
• Capital – ₹5 Cr NOF for NBFC-MFI; none for Section 8
• Business Plan – Detailed financial & operational roadmap
• Compliance Policies – KYC, Fair Practices Code, RBI norms

Registration Process

For NBFC-MFI

• Incorporate a Pvt Ltd or Public Ltd Company
• Arrange & deposit ₹5 Cr NOF (₹2 Cr in NE India)
• Obtain No-Lien Certificate from bank
• Apply online on RBI COSMOS portal
• Submit physical documents to RBI regional office
• Get Certificate of Registration (CoR) from RBI

For Section 8 Company

• Obtain DSC & DIN for directors
• Reserve unique company name
• Apply for Section 8 license (Form INC-12)
• File SPICe+ form for incorporation
• Get Certificate of Incorporation + PAN & TAN

Documents Required

For Directors/Shareholders

• PAN Card
• Aadhaar / Passport (for foreign nationals)
• Address proof (Utility bill/Bank statement)
• Passport-size photos

For Company Address

• Rent Agreement / Ownership Proof
• NOC from Landlord
• Utility Bill (latest)

For NBFC-MFI (extra)

• Business Plan & Policy Docs
• Banker’s Letter & No-Lien Certificate
• Audited Financials (3 years)
• KYC Policy & Fair Practices Code

Fees & Capital Requirements

Why Choose Tax Pal Solutions?

• 500+ MCA-Certified Experts
• 10,000+ Trusted Clients
• 2,500+ Monthly Registrations
• Pan-India Presence
• End-to-End Guidance till Approval

Whether your goal is large-scale lending or community development, we’ll help you set up your Microfinance Company the right way.