Documents for Registering Microfinance Company in India – Overview

Documents for Registering Microfinance Company in India
Karan Singh
| Updated: Jul 20, 2021 | Category: Microfinance Company

The acceptance of any business model or plan in India needs registration under significant authority. Whether you desire to start a manufacturing unit of electronic items or establish a finance entity, registration is the foremost necessity for all business nature. Anyway, in this write-up, we will be looking into the documents required for registering Microfinance Company as the single-stop destination for the unemployed and deprived people looking for financial help without any collateral. Hence, Microfinance Companies could be considered a financial reservoir for those who lack enough resources to obtain funds to meet their necessities.

An individual interested in establishing this business model requires going through a Microfinance Company Registration procedure that attracts sufficient documentation for registering Microfinance Company based on two business models as mentioned below.

Documentation for Registering Microfinance Company as NBFC Business Model

Documents for Microfinance Registration as NBFC business model is more of a legal version of the financial company as most third-party lenders are considered as Non-Banking Financial Companies. If you desire to choose for NBFC business model to set up Microfinance Company, you should furnish the following documentation.

Following are some vital documents for registering Microfinance Company as NBFC in India:

  1. MOA (Memorandum of Association) presenting the goal, identity, and work methodologies of the company;
  2. Registration Certificate granted by MCA (Ministry of Corporate Affairs);
  3. No Lien Certificate declaring detail of NOF (Net Owned Fund) issued by the bank;
  4. Net worth certificate of the company’s director issued by a Chartered Accountant;
  5. KYC of the present director;
  6. AOA (Articles of Association) including the rule, management details, hierarchical information, and internal working;
  7.  A confidential report of banker briefly demonstrating the track record of the entity concerning banking activities;
  8. Documents showing academic and professional qualification proof of the directors;
  9. Document showing work experience of the current directors in the financial sector;
  10. Structure plan of the business buildings where candidates proposed to conduct the business activities;
  11. Copy of Board Resolution generated at the time of the AGM in the presence of the board members;
  12. Receipt of the fixed deposit granted by the bank;
  13. The current credit report of directors granted by respective banks representing present credit information;
  14. Income proof of the director, such as ITR receipt or bank statement.

Documentation for Registering Microfinance Company (Section 8 Based)

Documents for registering Microfinance Company as Section 8 Company; in case if you desire to establish the Microfinance Company set up under the covering of Section 8 of the Companies Act 2013[1], you would require the following documents for Microfinance Company Registration:

  1. Submit a scanned copy of the PAN Card of all directors;
  2. Rental Agreement, Lease Deed, or ownership documents of property;
  3. Relevant stamp duty as mandated by the state;
  4. Documents concerning the identification and address proof of the core members of the establishments that is promoter and directors;
  5. No Objection Certificate (NOC) granted by the owner in case of the rented premise;
  6. Any additional documents as needed;

Establishing a business is one of the primary financial decisions made by a person in a lifetime. To make sure a flawless business of a company, one has to steak around with prescribed registration processes. One wrong step could push your months away from being a legal company. Hence, adopting the correct approach is hugely vital for someone who desires to establish a business company in the first attempt.

Details of Microfinance Companies that are worth your attention:

  • Microfinance entities majorly provide financial service to the unprivileged section of society;
  • The majority of the financial lending services at microfinance entities are collateral-free;
  • Microfinance entities generally offer low repayment rates when contrasted with trading lending entities;
  • Their rate of interest could be cruel as compared to other financial organisations;
  • Microfinance companies implement harsh repayment protocols for their money recovery;
  • They generally have huge loan portfolios with undercover conditions that are fierce in nature;
  • Under the business model of NBFC (Non-Banking Financial Company), the candidate requires providing AOA, MOA, and Board Resolution copy as a part of the documentation for registering Microfinance Company;
  • The Reserve Bank of India is the regulating body that regulates the activities of microfinance entities;
  • Revenue Department is accountable for the issuance of a corporate lien certificate. It generally shows the liabilities of the companies in the context of corporate tax;
  • Microfinance entities provide rural employment at an enormous scale;
  • Microfinance entities could generate significant employment;
  • Microfinance entities generally give and take ethical business practices for the sake of competence and profit;
  • A person with a deprived financial background can quickly get loans from these entities;
  • The consent process for Microfinance companies is not immediate as authority requires some time to examine the documents.


Microfinance entities are more precious to cancellation as far as the registration is involved. The reason is that Microfinance firms’ registration entices a vital number of documentations that are sensitive in nature. You or members of the company could possibly make an enormous mistake while preparing such documents for registering Microfinance Company in India. In those situations, we recommend you hire an expert to finish the registration formalities with ease.

Read our article:What are the Benefits of Microfinance Company Registration in India?

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.


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