Easily register a Micro Finance Company in Coimbatore with Shoplegal. The two popular business structures suitable for Microfinance Institutions (MFIs) are the Non-Banking Finance Company and the Section 8 Company.

Non-Banking Finance Company (NBFC):

A company aimed at operating a microfinance institution is known as NBFC – MFI. Such entities require registration with RBI. NBFCs are not permitted to accept deposits from the public. Should an NBFC intend to take deposits, it must obtain a separate authorization from the Reserve Bank of India (RBI).

Process of MicroFinance Company as NBFC :

Registering a microfinance company as an NBFC can be a bit complicated and expensive. As per RBI Regulations, NBFC registration mandates a minimum net owned fund of Rs.2 Cr.

Procedure for NBFC Registration in Coimbatore

• Increase the authorized and paid-up capital to Rs.2 Cr.
• Obtain a certificate by depositing Rs.2 Cr in fixed deposits.
• Fulfil other RBI formalities and acquire the necessary certificates.
• File the online application.
• Submit all hard copy application details to the RBI's Regional Office.
• Await further instructions from the Reserve Bank of India (RBI).