Advertise With Us

    Section 8 Micro Finance company

    Posted By : Sachin / Published on : 03-May-2021 12:53 PM / View : 304 / Comment : 1

    Print button
    Dear Friends,

    I want to incorporate section 8 micro finance company. I heard from the group that ROC wont allow to incorporate as of now.

    Is this true friends? If you have any circular or something than please share.

    Thank you.
    Read more on : company finance micro section

    • Sec. 8 Companies can’t incorporate or amend Object Clause to include microfinance activities.

      A Section 8 Company is a company formed under the Companies Act, 2013 with the primary purpose to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc. However, it cannot be formed for carrying on micro-finance activities.

      Owing to the nature of activities carried by the Section 8 Companies, they have been provided several exemptions and relaxations from complying with the provisions of the act.

      Once such relaxation is that the Sec. 8 company is not required to comply with the stringent criteria of “Net Owned Funds” as prescribed by RBI.

      MCA has observed a market wide-practice that was being followed to amend the main object of the Sec 8 company to include micro-finance activities. Companies were being incorporated without including micro-finance activities in main objects and later main objects were amended for inclusion of micro-finance activities by altering MOA.

      Thus, to curb this practice, MCA has directed the ROCs not to accept such applications for incorporation of Section 8 company or amending its main object, where it proposes Micro-finance activities as its main activities.






      19-06-2022 / 05:09:40 PM
    Please Select File:

Other Queries from Sachin
What's New on

Unanswered Queries
Like us on Facebook
Follow Us on Twitter

We are always here to help you. Don’t hesitate to contact us anytime!

+91-9988424211 or