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Sec 8 Micro Finance
As RBI has exempted Sec 8 companies for taking NBFc licence. Can a Sec 8 company be incorporated for micro finance activity.
Replies (1)
No,
As per the provisions of companies Act, 2013.
Section 8 company is not eligible to carry out the activities of NBFC or any other financial activities.
Such activities are-
Investment, Hire purchase, leasing, loan, insurance related or combination of all activities.
Though it is for micro finance activities, objectives of section 8 company is matters to incorporate. You must convene the Registrar that company is not for profit making purpose.
Since the objective of Sec 8 company is to serve the public, hence commercial activities are not allowed in Section 8 company.
As per the provisions of companies Act, 2013.
Section 8 company is not eligible to carry out the activities of NBFC or any other financial activities.
Such activities are-
Investment, Hire purchase, leasing, loan, insurance related or combination of all activities.
Though it is for micro finance activities, objectives of section 8 company is matters to incorporate. You must convene the Registrar that company is not for profit making purpose.
Since the objective of Sec 8 company is to serve the public, hence commercial activities are not allowed in Section 8 company.
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