Microfinance is a different kind of financial service oriented Company (like bank) that offers basic financial services to the people. It can help the clients in providing, savings, deposits, micro loans and micro Insurance to the needy people and small organizations.But now, the total numbers of MFI has grown up significantly. As on 2017, there were more than 220 MFIs have done their Company Registration in India and working effectively in serving the common people. If you want to register a NBFC company and want to make an investment of Rs 5 crore into it, there is no acceptance to deposits. According to RBI process, NBFC non deposit taking Company should be registered initially. Afterwards application must be done for deposit taking status from the RBI.Two type of MicrofinanceThere are basically two types of Microfinance Company .that we can find in India.Microfinance Company that is regulated by the Reserve Bank of India (RIBI)Section 8 Company as Non-Profit Organization (NPO).Why Start Microfinance Company?Microfinance has changed the impression of financial service sector in the whole World. It has revolutionized the overall financial industry. Starting MFI is a great option for many industry enthusiasts and entrepreneurs. It is also beneficial for both the owner and the services receivers.Improve the life prospects of Poor PeopleThe introduction of Microfinance was intended to end poverty. MFIs offer basic financial services and micro loans to the underprivileged section of the society. They fulfill the basic financial requirements of the poor and improve their overall life prospects.Huge Market to ExploreThe success of any business depends on the availability of clients. The more clients are there, the company prospects get improved. Around 38% of the total population in India lives in poor condition. Hence, there are millions of people are waiting to get services from a Microfinance Company.Loan to the PoorBanking institutions award credit and loans to the resourceful people, only. Poor people usually can't get any type of credit assistance from the banks. But, MFIs provide loans to the impoverished people and unorganized firms, mainly. With the loans, they can utilize it to improve their life or business prospects.Chance of better loan recoveryMFI provided micro loans are very small in size. And those loans are also provided with easier repayment terms. Hence, it's easy to recover the loan amount without many efforts. Most of the Micro loans are provided to the women. It was seen that women are less likely to default a loan in compared to the men.Requirement of Microfinance Company IncorporationThere are numbers of rules and regulations that need to follow if anyone wishes to begin with Microfinance Company Incorporation.The net possessed asset should be ¹5 Crore or more. If the organization is from the north-east zone, then asset prerequisite is ¹ 2 Crore or more.Deposit ¹ 2 Crore as fixed deposit in any bank and get 'no lien' certificate.One of the Company Directors should have 10+ years of experience.Microfinance Companies are strictly regulated by the Reserve Bank of India (RBI). Hence, it requires certification of approval to start an MFI.People need to decide the structure of their Microfinance Company like Private Limited or Public Limited. In case of Private Limited, 3 member/shareholder and 2 directors are required. If it is Public Limited, then 7 members/shareholders and 3 no. of directors are essential.Application for Microfinance Company RegistrationDigital Signature Certificates (DSC) is essential for all members and directors.Director Identification Number (DIN) is crucial for the Director of the MFI.Apply to the Registrar of Companies (ROC) for the name confirmation of your new MFI. It can be done online by using the Reserve Unique Name (RUN) portal.To complete the registration process of the Microfinance Company, people can apply to the Registrar of Companies (ROC) along with below mentioned documents.Articles of Association (AOA),Memorandum of Association (MOA),Board Resolution Copy of the Firm,Copy of the Fixed Deposit credential by the auditor,Copy of the 'no lien' certificate got from the respective bank,Directors total assets declaration and late credit report.10 years Experience certificate of the Director in financial industry,Net Worth Certificate of the Director,All shareholders and directors of the company must submit the copy of their Identity and address proof.Company Address Proof.After the submission of all these documents to the ROC, people need to wait for more 10-15 days for the incorporation certificate. After the incorporation is done, people have to apply for PAN (Permanent Account Number) and TAN (Tax Account Number) for the newly incorporated MFI. Also, a current account for the same is necessary.Get a highly experienced professionals team for microfinance company, section 8 company, nidhi company registration services and always keep ourselves updated to all latest technical updates, development and changes for it.