Starting a microfinance company under Section 8 of the Companies Act, 2013 can be a rewarding venture for those looking to combine their passion for social impact with financial inclusion. Section 8 companies are non-profit organizations that aim to promote charitable activities, including microfinance. In this article, we will explore the registration process, costs, and fees associated with setting up a Section 8 microfinance company.
Section 8 Microfinance Company Registration Process:
1. Preparing the Memorandum of Association (MOA)
and Articles of Association (AOA):
- The MOA and AOA define the purpose and rules of operation for the microfinance company.
- It is important to outline the organization's objectives, structure, and governance in these documents.
- Professional assistance from a company secretary or legal expert is recommended to ensure compliance.
- A minimum of two directors is required for Section 8 Microfinance Company Registration.
- The directors must comply with the eligibility criteria set forth by the Companies Act, such as being over 18 years of age and not disqualified under certain provisions.
- Promoters should gather necessary identification documents, such as PAN cards, address proofs, and photographs, for the registration process.
3. Name Approval:
- Choosing an appropriate name for the microfinance company is crucial.
- The name should reflect the organization's purpose and must not violate any existing trademarks or intellectual property rights.
- Submit the proposed name to the Registrar of Companies (ROC) for approval through the RUN (Reserve Unique Name) service.
- Prepare the necessary registration documents, including the MOA, AOA, and forms such as SPICE (Simplified Proforma for Incorporating Companies Electronically) or INC-32.
- Attach supporting documents, such as identity proof, address proof, and consent letters from directors, to the application.
- Submit the application along with the prescribed fees to the ROC.
5. Review and Approval:
- The ROC will review the submitted documents and may request additional information or clarification if necessary.
- Once satisfied with the application, the ROC will issue a Certificate of Incorporation, indicating successful registration of the Section 8 microfinance company.
- This certificate signifies the legal existence of the microfinance company.
Section 8 Microfinance Company Registration Fees:
The registration cost and fees for a Section 8 microfinance company may vary based on several factors, including the authorized capital and professional charges. Here are the primary expenses involved:
1. Government Fees:
- The government fees for Section 8 Microfinance Company Registration depend on the authorized capital.
- Section 8 Microfinance Company Registration Cost includes charges for name reservation, filing forms, and obtaining the Certificate of Incorporation.
- The exact fee structure can be found on the Ministry of Corporate Affairs (MCA) website.
- Engaging a professional, such as a company secretary or a chartered accountant, can help streamline the registration process and ensure compliance.
- The professional Fees may vary based on the complexity of the registration, scope of services, and the professional's expertise.
Conclusion:
Section 8 Microfinance Company Registration Process requires careful planning, adherence to legal requirements, and an understanding of the registration process and associated costs. By following the prescribed steps and seeking professional assistance, aspiring entrepreneurs can embark on a journey towards creating a socially impactful microfinance institution under the Section 8 framework.
