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Section 8 Microfinance Company Registration in India

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Why Should I Use Auriga Accounting For Section 8 Microfinance Company Registration in India?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your Section 8 Microfinance Company Registration in India.

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for registration

Complete your registration

Your Section 8 Microfinance Company is registered

Why Should I Use Auriga Accounting For Section 8 Microfinance Company Registration in India ?

Auriga Accounting has a team of registration experts who can provide complete guidance to register your Section 8 Microfinance Company Registration in India.

book appointment

Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for registration

Complete your registration

Your Section 8 Microfinance Company is registered

Section 8 Microfinance Company Registration in India ? - online process ,fees , Documents Required

A Section 8 Company, Trust, and Society all serve charitable or non-profit objectives, but differ in their legal structures. A Section 8 Company is a registered entity under the Companies Act, offering limited liability to its members and regulated by the Ministry of Corporate Affairs. A Trust is governed by a trust deed, managed by trustees, and regulated by state-specific Trust Acts. A Society is formed under the Societies Registration Act, managed by a governing body or managing committee, and operates under bylaws. While all aim for social welfare, their legal frameworks, governance structures, and regulatory oversight vary.

What is Section 8 Microfinance Company ?

A Section 8 Microfinance Company is a type of organization that provides small loans and financial services to low-income individuals, particularly in rural or underserved areas. Unlike traditional banks, Section 8 Microfinance Companies operate as non-profit entities, focusing on social impact rather than profit-making. They aim to empower marginalized communities by offering financial resources, such as small loans and savings accounts, to support entrepreneurship, livelihoods, and poverty alleviation. These companies often prioritize financial inclusion, offering services to those who lack access to formal banking institutions, enabling them to build assets, improve their standard of living, and contribute to economic development.

Section 8 Microfinance As per Company's act 2013

Section 8 Microfinance Company refers to a type of non-profit organization registered under Section 8 of the Companies Act, 2013, in India. These companies primarily focus on providing financial services, including credit, savings, insurance, and other financial products, to low-income individuals and microenterprises. Unlike traditional microfinance institutions, Section 8 Microfinance Companies operate on a not-for-profit basis, with the aim of promoting social welfare and financial inclusion among marginalized communities. They leverage funds from donors, government schemes, and other sources to offer affordable financial services and contribute to poverty alleviation and sustainable development.

Section 8 microfinance company, as defined by relevant legislation, refers to a non-profit organization established under Section 8 of the Companies Act. Its primary objective is to provide financial services, such as small loans and savings facilities, to low-income individuals and marginalized communities to promote financial inclusion and empowerment.

Who Is Eligible For Section 8 Microfinance Company Registration in India

  • Minimum number of members: A private limited company must have a minimum of two members or shareholders to be incorporated. The maximum number of members allowed is generally limited to 200.
  • Directors: A minimum of two directors is required for the incorporation of a private limited company. At least one of these directors must be a resident of India, meaning they have resided in India for a cumulative period of at least 182 days in the previous calendar year.
  • Non-Profit Intent: The company must have a primary objective of promoting commerce, arts, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other similar objective, and must intend to apply its profits, if any, or other income for promoting these objectives.
  • No Dividends Distribution: The company cannot distribute any dividends to its members and should reinvest any profits for achieving its objectives.
  • Minimum Number of Directors: It must have a minimum of three directors for a private company and seven directors for a public company.
  • Minimum Capital Requirement: There’s no minimum capital requirement, but the company should have sufficient funds to fulfill its objectives.
  • Registration Process: Apply for registration under Section 8 of the Companies Act, 2013, with the Registrar of Companies (RoC) by submitting the necessary documents and forms.
  • Board Approval: The company’s proposed name and objectives must be approved by the Board of Directors.
  • Compliance: After registration, the company must comply with ongoing regulatory requirements, including filing annual returns and maintaining proper financial records.
  • Microfinance Focus: While not explicitly stated in the eligibility criteria, the company should focus on providing financial services to low-income individuals and micro-enterprises, as per the microfinance model.

Benefits of Section 8 Microfinance Company Registration in India

  • Access to Financial Services: Section 8 Microfinance Company Registration enables easier access to financial services for individuals and small businesses, especially those in rural areas or low-income communities.
  • Empowering the Underprivileged: It empowers economically disadvantaged individuals by providing them with opportunities for loans, savings, and other financial products to improve their livelihoods.
  • Financial Inclusion: It promotes financial inclusion by reaching out to those who are traditionally excluded from mainstream banking services, thus bridging the gap between the unbanked and formal financial systems.
  • Support for Entrepreneurs: Section 8 Microfinance Companies support micro-entrepreneurs and small businesses by offering them microloans and financial assistance to start or expand their ventures.
  • Poverty Alleviation: By providing access to credit and financial resources, it contributes to poverty alleviation by enabling individuals to invest in income-generating activities, education, and healthcare.
  • Community Development: It fosters community development by reinvesting profits into local economies, thereby creating employment opportunities and stimulating economic growth at the grassroots level.
  • Flexible Repayment Terms: Microfinance institutions typically offer flexible repayment terms tailored to the borrowers’ needs, making it easier for them to manage their finances and repay loans on time.
  • Promotion of Financial Literacy: Section 8 Microfinance Companies often provide financial education and training to their clients, empowering them with the knowledge and skills needed to make informed financial decisions and manage their resources effectively.
  • Credibility: A Section 8 company is registered under the Companies Act, 2013, which gives it a legal status and enhances its credibility in the eyes of the public, donors, and other stakeholders.

Documents Required for Section 8 Microfinance Company Registration in India

  • Scanned copy of PAN card or passport (foreign nationals & NRIs)
  • Scanned copy of voter ID/Aadhar Card/ Driving Licenses
  • Scanned copy of the latest bank statement
  • Scanned copy of the electricity or gas bill
  • Scanned passport-sized photograph specimen signature (blank document with signature directors only)

process of Section 8 Microfinance Company Registration in India

  • Apply for Digital Signature Certificate (DSC): The first step is to obtain a Digital Signature Certificate for all the proposed directors of the company. This certificate is necessary for filing electronic documents with the Registrar of Companies (ROC)
  • Apply for Director Identification Number (DIN): Each proposed director must obtain a unique Director Identification Number by submitting an application to the Ministry of Corporate Affairs (MCA).
  • Apply for Name Reservation: Choose a unique name for the company and submit an application for name availability to the ROC. The name should comply with the naming guidelines provided by the MCA.
  • Prepare Memorandum of Association (MOA) and Articles of Association (AOA): Draft the MOA and AOA, which define the company’s objectives, activities, and internal regulations. These documents need to be stamped and signed by the subscribers.
  • File Incorporation Documents: Prepare the necessary incorporation documents, including the MOA, AOA, and other required forms. These documents need to be filed electronically with the ROC through the MCA portal, along with the prescribed fees.
  • Payment of Stamp Duty: Pay the applicable stamp duty on the authorized share capital of the company. This can be done online or through designated bank branches.
  • Verification and Approval: The ROC will examine the filed documents and may request additional information or clarifications. Once satisfied, the ROC will issue a Certificate of Incorporation, indicating the successful incorporation of the private company.
  • Issuing of Certificate of Incorporation, PAN and TAN : Post approval of Documents from Ministry of corporate affairs’ the department issue documents such as PAN,TAN and Certificate of Incorporation.
  • Post-Incorporation Compliance: After incorporation, the company must fulfill certain post-incorporation compliance requirements, such as issuing share certificates, holding the first board meeting, and appointing an auditor.

when will you have your certificate?

Auriga Accounting Private Limited has Qualified company sectaries all over India, Hauz Khas, and Green Park. Section 8 Microfinance Company registration in India will be done by our qualified professionals In Delhi and as they have experience, they will give you the certificate within 7-10 days and provide you with all the documents related to the company immediately

What you get after Section 8 Microfinance Company Registration ?

  • Certificate of Incorporation (COI)
  • Company Memorandum of Association (MOA)
  • Company Articles of Association (AOA)
  • Company Pan Card
  • Company Tan Card
  • Class 3 Digital Signature (DSC)
  • Director Identification Number (DIN)

Compulsory Compliances for Section 8 Microfinance Company Registration in India

Annual Filings:

  • Form MGT-7: Annual Return filing within 60 days of the Annual General Meeting (AGM).
  • Form AOC-4: Financial Statements filing within 30 days of the AGM.

Financial Disclosures:

  • Form ADT-1: Appointment of Auditor within 15 days of the AGM.
  • Form DIR-3 KYC: Director KYC verification annually.

Income Tax Filings:

  • Form ITR-5: Income Tax Return filing by 30th September each year.

ROC (Registrar of Companies) Filings:

  • Form INC-22A (ACTIVE): Filing of e-form ACTIVE (Active Company Tagging Identities and Verification) for company’s address verification.
  • Form DPT-3: Return of deposits.

ESI (Employee State Insurance) and PF (Provident Fund):

  • File monthly/annual returns and make necessary payments.

Reasonable Price for Filling Section 8 Microfinance Company Registration in India

Auriga Accounting Private Limited in India provides Company Registration at a reasonable price or if Section 8 Microfinance Company Registration from us then we give you a special discount.  Our services are value for money and you never paid a penalty. Our clients are all over India i.e., Chhattisgarh, Assam, Maharashtra, Uttar Pradesh, Delhi, Madhya Pradesh, Bihar, and many other states, and they are very happy with us.  We also give you time-to-time updates with full transparency.

How Auriga Accounting Helps You – Why Auriga?

For those Individuals and companies who do not have any knowledge regarding Section 8 Microfinance Company Registration, our company Representative team provides knowledge, give relevant information, and explains the full process with proper guidelines, government rules, and regulations

We tell you what benefits you will get by opening a Section 8 Microfinance Company and, we tell you about all the compliance related to it. We start telling through messages. so that, when the last date or time comes, So, at the time of compliances, Client gets prepared about the company compliances.

The best thing about us is that our clients also tell us, that we give equal time to everyone, we are very happy that our work is liked by our clients, who are sitting in different states, i.e., Andhra Pradesh, Arunachal Pradesh, Goa, Gujrat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, and many more states. They cannot come to us, We Cannot go to them, but we are just connected through phones or E-mail. If the client gets satisfied with our work, then it is known that Auriga Accounting did a good job today.

Frequently Asked Questions (FAQs)

Savings, deposits, insurance, loans, pensions, and credit are all examples of microfinance services. In a nutshell, it includes both credit and non-credit activities. Microcredit includes both a loan and credit, implying only credit activities.

Numerous researchers and decision-makers conclude that microfinance promotes entrepreneurship, boosts income-generating activity and thus alleviates poverty, empowers the poor (particularly women in developing nations), expands access to health and education, and fosters social capital within disadvantaged and vulnerable communities.

The major cons are not very different from any regular lending channels and include rising death cases among borrowers due to financial stress, deepening poverty, high-interest rates, disrespect to borrowers, and an overall decline in the community cohesiveness.

Many researchers and policymakers believe that microfinance promotes entrepreneurship, increases income-generating activity and thus decreases poverty, empowers the poor (particularly women in developing countries), increases access to health and education, and creates social capital among vulnerable and poor communities.

It all began when economist Muhammed Yunus, a nobel prize winner from the neighbouring country of Bangladesh, began making small loans to poor families in neighbouring villages to break their cycle of poverty during the famine of the 1970s. NABARD took this idea and started the concept of MFIs in India.

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