Start a Microfinance Institution Without RBI Approval
Start a Microfinance Institution Without RBI Approval
Blog Article
A Section 8 Microfinance Company is a popular legal structure for starting a micro-lending business with a social objective in India. Unlike traditional NBFCs, a Section 8 Company does not require RBI approval to operate, making it an easier and more affordable option for those aiming to offer financial services to low-income groups, women, and rural entrepreneurs.
Under the Companies Act, 2013, a Section 8 Company is registered as a non-profit organization with the objective of promoting social welfare, financial inclusion, and economic development. These companies can offer small loans (microloans) to individuals and self-help groups, especially in underbanked regions. However, they must reinvest profits into their mission and cannot distribute dividends to members.
The registration process includes obtaining DSC, DIN, name reservation through the RUN form, drafting of MOA & AOA, and filing incorporation forms with the Registrar of Companies (RoC). Approval from the central government is also required under Section 8 provisions.
If you're looking to start a Section 8 Microfinance Company, Agile Regulatory is here to simplify the entire registration process. We are a trusted legal and regulatory consultancy with years of experience in incorporating Section 8 companies across India. Our team handles everything—from document drafting and application filing to obtaining licenses and post-registration compliance.
At Agile Regulatory, we ensure that your microfinance institution is registered correctly, legally, and efficiently. We also guide you through PAN, TAN, NGO Darpan, and 12A/80G registration if required. Whether you’re working in rural empowerment or urban financial inclusion, we’ll help you establish your microfinance business in a compliant and cost-effective manner.
With Agile Regulatory, your vision to empower communities through responsible lending can take shape with legal confidence. Contact us today to get started with your Section 8 Microfinance Company registration.
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