Introduction:-
Microfinance plays a pivotal role in fostering financial inclusion, especially in emerging economies. A Section 8 Microfinance Company, operating under the Companies Act, 2013, is designed to promote charitable objectives, including poverty alleviation and economic development. In this article, we will walk you through the essential steps to successfully register a Section 8 Microfinance Company.
Understanding Section 8 Companies:-
Section 8 companies are non-profit organizations that are formed with the intention of promoting charitable activities. These companies are exempt from distributing dividends to their members and any profits earned are utilized for the betterment of society. Microfinance companies registered under Section 8 primarily focus on providing financial services to low-income individuals and communities.
Step-by-Step Guide to Registration:-
1. Name Approval and Reservation
Choose a unique name for your microfinance company and apply for its approval with the Registrar of Companies (ROC). The name should reflect the objectives and mission of the company.
2. Memorandum of Association (MOA) and Articles of Association (AOA)
Draft the MOA and AOA of the company, clearly outlining the charitable objectives and activities. These documents should be submitted to the ROC along with the required forms.
3. Director Identification Number (DIN) and Digital Signature Certificate (DSC)
Directors of the microfinance company must obtain a DIN from the Ministry of Corporate Affairs. Additionally, they need a DSC for online filing of documents.
4. Application Submission
Submit the registration documents to the ROC along with the required fees. These documents include MOA, AOA, DIN, DSC, and the application form.
5. Review and Approval
The ROC will review the documents and, if satisfied, issue the Certificate of Incorporation. This serves as the legal proof of registration for your Section 8 Microfinance Company.
6. PAN and TAN Application
Obtain the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company. These are essential for compliance with tax regulations.
7. Registration for 80G and 12A
To avail tax benefits for donors and exemptions on income, apply for Section 80G and 12A registration with the Income Tax Department.
8. Compliance and Reporting
Ensure compliance with all regulatory and statutory requirements. Keep accurate records and file necessary reports with the concerned authorities.
Conclusion:-
Section 8 Microfinance Company Registration is a significant step towards making a positive impact on society. By following this roadmap, you lay a strong foundation for your company's success in fulfilling its charitable objectives. Remember to consult with legal experts and professionals for expert guidance during the registration process.