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Microfinance Company Registration 2026

Experience a smooth and hassle-free Microfinance Company Registration with Avinext Legal Services. Our professionals handle the entire process with accuracy and compliance.

  • Affordable Price
  • Free Lifetime Consultations
  • Digital Signature & DIN for Directors
  • Name Search Approval
  • Drafting of MOA & AOA
  • Section 8 Microfinance without RBI approval
  • ROC Fee & Stamp Duty Included
  • GST Registration
  • Company PAN Card
  • PAN , TAN
  • EPFO, ESIC
  •  

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Microfinance Company Registration 2026: Guide & Procedure

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Share Company & Promoters Details

Provide details of your company, promoters, directors, capital structure, financial projections and proposed microfinance lending model for eligibility evaluation as per RBI NBFC–MFI norms.

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Company Incorporation & Capital Infusion

A new Private or Public Limited Company is incorporated and the required Net Owned Fund is brought in. For NBFC–MFI registration, the minimum capital requirement is ₹5 Crore (₹2 Crore for North-Eastern states).

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Policy & Compliance Documentation

We prepare RBI-compliant policies including Fair Practices Code, Credit Policy, KYC–AML policy and risk management framework along with business plan and financial statements required for NBFC–MFI licensing.

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RBI Application Filing

The online application is filed with the Reserve Bank of India through the COSMOS portal followed by submission of physical documents to the respective Regional Office for verification and scrutiny by RBI.

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Grant of NBFC–MFI License

After successful review of capital adequacy, promoter background, governance standards and business plan, RBI issues the Certificate of Registration allowing the company to operate as a Microfinance NBFC in India.

RBI Compliant Microfinance Registration
Microfinance Company Registration (NBFC–MFI)

Register your Microfinance Company under RBI as an NBFC–MFI and provide small-ticket loans to low-income households in a regulated and compliant manner. Get complete end-to-end support including capital planning, documentation and RBI license processing.

Microfinance Company Registration 2026: Step By Step

Microfinance Company Registration in India – Overview

A Microfinance Company (NBFC–MFI) is a specially registered financial institution under RBI that provides small loans to low-income families, women entrepreneurs, self-help groups and micro-business owners. In simple words, Microfinance helps those people who cannot easily get loans from traditional banks.

These companies support financial inclusion by offering small credit, business startup loans, group loans and livelihood support finance — especially in rural and semi-urban areas. This sector plays a key role in empowering women, farmers, small shop owners and self-help group members.

Important: All Microfinance Companies must register with RBI as NBFC-MFI and strictly follow RBI Master Directions, compliance rules and reporting guidelines.

Benefits of Registering a Microfinance Company

  • Legal & Authorised Lending Platform: You can provide micro-loans legally under RBI regulations.
  • Supports Financial Inclusion: Helps economically weaker sections access formal credit.
  • High Growth Industry: Strong demand across rural and semi-urban India.
  • Investor & Banking Confidence: RBI-regulated status improves trust and credibility.
  • Social Impact & Empowerment: Encourages self-employment, women empowerment and livelihood creation.

Eligibility Criteria for Microfinance Company Registration

Requirement Details
Company Type A new Private or Public Limited Company must be incorporated first.
Minimum Directors 2 Directors for Private Company | 3 Directors for Public Company
Net Owned Fund Minimum ₹5 Crore (₹2 Crore for North-Eastern States)
RBI Registration Compulsory Certificate of Registration as NBFC-MFI
Fit & Proper Criteria Promoters must meet RBI integrity and financial standards

Key Regulatory Requirements

  • The company must first obtain NBFC-MFI license from RBI.
  • At least 75% of total loans must qualify as microfinance loans.
  • Board-approved Fair Practice Code is mandatory.
  • Strict KYC & Anti-Money Laundering compliance required.
  • Periodic financial and compliance reporting to RBI.
  • Public deposits cannot be accepted unless permitted by RBI.

Documents Required

  • Certificate of Incorporation
  • Memorandum & Articles of Association
  • Proof of Capital & Net Worth
  • Directors’ KYC & Profile
  • Detailed Business Plan & Projections
  • Board Resolution for NBFC-MFI Registration
  • Registered Office Address Proof
  • Audited Financial Statements

Step-by-Step Registration Process

  1. Company Formation: First, a Private or Public Limited Company is incorporated under the Companies Act.
  2. Capital Infusion (Net Owned Fund): The required capital (₹5 Crore / ₹2 Crore NE states) is brought in and deposited in the company’s bank account.
  3. Bank Confirmation: A banker’s certificate confirming the capital balance is obtained.
  4. Policy & Compliance Preparation: RBI-compliant documents such as Credit Policy, Fair Practice Code, KYC-AML policy, Risk Framework and Business Plan are prepared.
  5. Online Application on RBI Portal: The NBFC-MFI license application is filed through the COSMOS portal along with required documents.
  6. Verification & Due Diligence by RBI: RBI reviews promoters’ background, financial soundness, governance structure and business plan in detail.
  7. Grant of NBFC-MFI License: After successful scrutiny, RBI issues Certificate of Registration, allowing the company to legally operate as a Microfinance NBFC.
Note: Microfinance lending activities can begin only after receiving RBI approval and Certificate of Registration.

Government Fees & Professional Charges

The overall cost of Microfinance Company registration depends on authorised capital, RBI application fees, stamp duty and professional documentation expenses.

Cost Component Description
Company Incorporation Cost ROC fees based on authorised share capital
RBI Registration Application and compliance-related costs
Professional Charges Depends on complexity and advisory scope

*Final cost varies depending on capital structure and RBI compliance requirements.

What’s Included in Our Package?

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Certificate of Microfinance
Company Registration

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Complete Compliance
Support & Advisory

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DIN & DSC
for 2 Directors

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Company Name
Search & Approval

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MOA & AOA
Drafting & Filing

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Company PAN
Allotment

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EPFO Registration
(If Applicable)

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ESIC Registration
(If Applicable)

Why Choose Us

From registration to annual compliance, we simplify every step with expert guidance, transparent pricing and on-time delivery tailored to your organisation.

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Pan-India Service

We assist NGOs, startups and companies across India with fully online documentation and support – no need to visit any office.

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Experienced CA / CS Team

Your work is handled by qualified professionals who understand regulations, funding requirements and ground-level challenges.

Fast & Transparent Process

Clear timelines, document checklists and regular updates – so you always know the exact status of your application.

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Long-Term Compliance Support

Beyond registration, we help with 12A, 80G, FCRA, GST and annual filings, keeping your organisation compliant year after year.

Microfinance Company Registration – FAQs

Common questions related to Microfinance Company (NBFC–MFI) registration and licensing under the Reserve Bank of India (RBI).

Yes. Any company providing micro-loans on a professional basis must be registered with the Reserve Bank of India as an NBFC–MFI. Lending without RBI approval is not permitted under law. Only after receiving the Certificate of Registration from RBI, the company can legally start microfinance operations.
As per current RBI guidelines, the company must have a minimum Net Owned Fund of ₹5 Crore. For North-Eastern states, the requirement is ₹2 Crore. This capital must be contributed by the promoters and maintained in the company bank account before filing the application.
Any Private or Public Limited Company registered in India can apply for NBFC–MFI registration, provided the promoters meet RBI “fit and proper” criteria, have sound financial background and follow ethical lending practices.
A Microfinance Company mainly provides small-ticket loans to low-income households, self-help groups and micro-entrepreneurs for income-generating activities such as shop, dairy, farming support, handicrafts and small business financing, subject to RBI eligibility norms.
Yes. Once RBI grants the Certificate of Registration, the approval remains valid as long as the company continues to comply with RBI regulations, capital maintenance, reporting requirements and fair-practice guidelines.
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