Registration of Microfinance finance company under Section 8 of the Act
This query is : Resolved
12 April 2022
Whether Microfinance company registered under Section 8 ? if yes, ROC not approving RUN name reservation form due to words like "Micro Benefit/Micro Credit / Micro finance " include in main object clause.
As per RBI Circular stated that Micro Finance Companies Sections 45-IA, 45-IB and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) shall not apply to any non-banking financial company which is Circular no. RBI/2015-16/15 DNBR (PD) CC.No.052/03.10.119/2015-16 dated July 1, 2015 (a)engaged in micro financing activities, providing credit not exceeding Rs. 50,000 for a business enterprise and Rs. 1,25,000 for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living; and (b) licensed under Section 25 of the Companies Act, 1956; and (c)not accepting public deposits as defined in paragraph 2(1) (xii) of Notification No. 118 /DG (SPT)-98 dated January 31, 1998.
Please clarify whether Section 8 Company Can do microfinance business within prescribed limits ?
Please help in this matter. Thanks
As per RBI Circular stated that Micro Finance Companies Sections 45-IA, 45-IB and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) shall not apply to any non-banking financial company which is Circular no. RBI/2015-16/15 DNBR (PD) CC.No.052/03.10.119/2015-16 dated July 1, 2015 (a)engaged in micro financing activities, providing credit not exceeding Rs. 50,000 for a business enterprise and Rs. 1,25,000 for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living; and (b) licensed under Section 25 of the Companies Act, 1956; and (c)not accepting public deposits as defined in paragraph 2(1) (xii) of Notification No. 118 /DG (SPT)-98 dated January 31, 1998.
Please clarify whether Section 8 Company Can do microfinance business within prescribed limits ?
Please help in this matter. Thanks
13 April 2022
No, micro finance company can't be registered as section 8 company.
Register as normal company.
.
Register as normal company.
.
14 April 2022
Sir as per RBI circular Section 25 (Now Section 8) Company can do microfinance business for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living within prescribed limits. Please clarify.
14 April 2022
Add this in object class it will be allowed.
Microfinance business for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living within prescribed limits.
Microfinance business for meeting the cost of a dwelling unit to any poor person for enabling him to raise his level of income and standard of living within prescribed limits.
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