The Answer is a BIG NOOO
I receive many enquiries asking whether a Micro Finance Company company be incorporated under section 8, I simply send them a General Circular by Ministry of Corporate Affairs on this and say NO it cannot be incorporated.
It is not feasible as they do not comply with stringent criteria of Net Owned Funds as laid down by RBI.
References:
Incorporation of a Micro Finance Company
Micro Finance as an object under object clause of section 8 company
Incorporation of a Micro Credit Company in India
Application for registration of Micro Finance Company under section 8 of the Companies Act, 2013
General Circular:
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