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How do I set up a micro finance company?

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How do I set up a micro finance company?

Process of MicroFinance Company as NBFC

  1. Register a Company.
  2. Raise Authorised and paid up capital to Rs.
  3. Deposit Rs.
  4. Get all the certified copies and complete the other RBI formalities.
  5. Fill online application.
  6. Submit the hard copy of the application to the Regional Office of the RBI.

What are the requirements to open a finance company?

To start your Finance Company as a Section 8 Company, the minimum number of Directors is 2, in India.

  • Obtain their DSC and DIN.
  • Choose and get the Name approved from the ROC.
  • Apply for a License to do the social work in India, from the Central Government.
  • On receipt of License approval, apply for Incorporation.

How can I get NBFC license from RBI?

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Applying for NBFC License

  1. Information about the management.
  2. Certified copies of Certificate of Incorporation and Certificate of Commencement of Business in case of public limited companies.
  3. Certified copies of up-to-date Memorandum and Articles of Association of the company.
  4. Copy of PAN/CIN allotted to the company.

How do I start a small NBFC?

Procedure to Incorporate an NBFC

  1. A company should first be registered under the Companies Act 2013 or should already be registered under the Companies Act 1956 as either a Private Limited or a Public Limited Company.
  2. The minimum net owned funds of the Company should be Rs.

What is Nidhi Company Registration?

Nidhi Company is a type of Non-Banking Financial Company (NBFC). Nidhi Company isn’t required to receive the license from Reserve Bank of India (RBI), hence it is easy to form. It is registered as a public company and should have “Nidhi Limited” as the last words of its name.

How can I open a microfinance bank account?

Please Upload scanned copies of the following:

  1. Business Registration Form*
  2. MOA (If applicable)*
  3. Utility Bill of Corporate Address (Not more than 3 months)*
  4. Recent Passport Photograph of First Signatory*
  5. Recent Utility Bill of First Signatory (Not more than 3 months)*
  6. Valid Means of Identification of First Signatory*
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How do microfinance banks make money?

Management, processing, commitment, transfer fees are familiar to customers when loans are disbursed to them or when they request for local transfer services. ii). Interest income: This is the reward the MfB receives when loans are granted to customers. It usually constitutes over 70\% of the total MfB revenue.