A Microfinance Company is a financial institution that assists the low income groups with finances. Low income groups mean a sector where there is lesser financial requirement than other sectors of the society. Such sectors don't have an access to traditional financial institutions. Let's know more about this company. What is the significance of a Microfinance Company?Well, India needs more of Microfinance Companies as it serves various purposes. Some of them are as follows:
Formation of Microfinance CompaniesIt may be noted that an NBFC is authorized by the Reserve Bank to conduct financial business. However, there are certain exemptions that are provided by the Reserve Bank to perform financial activities. Hence, the registration of this company can take place through-
What are the essential requirements for Micro Finance Company Registration?In order to register as a Micro Finance Company through an NBFC or a Section 8 Company, the following requirements must be fulfilled:
Process for Registration of Microfinance Company as an NBFCThe following is the procedure for Registration of Microfinance Company through an NBFC:
Documents required-
Process for Registration of Microfinance Company as a Section 8 CompanyThe following is the procedure for Registration of Microfinance Company through a Section 8 Company:
Documents required-
Advantages of Microfinance Company in IndiaThe advantages are as follows
ConclusionWhile making a decision regarding whether to register the Microfinance Company as an NBFC or a Section 8 Company, consider all facts and then move forward with the registration process. You are advised to seek the help of a professional in this regard who can guide you better in your decision making.
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7/6/2023 11:33:38 am
ANNA has always been at the forefront of using AI to help our customers. We recently won “Best Application of AI or ML in Financial Services” at the 2023 Card and Payments Awards, and that highlights how we’re always trying to use AI, machine learning and Large Language Models (LLMs) to make things simpler and easier for small businesses across the UK. We’ve never been afraid to use technology to make life easier for our customers. If you have any questions or would like to discuss your needs further,
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