Micro finance company under Section 8

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mayur kumar (Querist)
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21 January 2023 Can register for Micro finance company under Section 8 ? IF yes, is there any new amendments that i should know before I apply for registration.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 January 2023 Yes, Section-8 Company is the easiest way to form a Micro Finance Company in India as per Ministry of Corporate Affairs. Without collecting any additional fees or ensuring security. It can make loans at low interest rates as recommended by the RBI and the central government.

mayur kumar

mayur kumar (Querist)
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21 January 2023 Thank you ,Is there any capital limit to start the micro finance under Section 8 company.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 January 2023 Apply for central government licenses features of which are as follows: Maximum Rs. 50,000 can be given for business purpose and Rs. 125,000 for residential dwelling.
No minimum capital requirements has been specified for Section 8 companies in the Companies Act, 2013. Section 8 companies can alter its capital structure later on as per its requirements.

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