Professional assistance for company incorporation, RBI/NBFC-MFI regulatory requirements, documentation and ongoing compliance

Microfinance Company Registration in India

Start your microfinance business with a properly structured legal and regulatory framework. Banshi Group provides professional assistance for entrepreneurs, promoters and organisations planning to establish a microfinance company in India, including support for incorporation, documentation, regulatory preparation and compliance.

Microfinance Company Registration in India

A microfinance company provides financial services, particularly small-value credit facilities designed to serve eligible low-income borrowers and underserved communities. For businesses intending to operate as an NBFC-MFI, the regulatory framework is governed by the Reserve Bank of India along with applicable provisions of the Companies Act, 2013 and other relevant laws. The registration journey generally involves establishing the appropriate company structure, arranging the required capital, preparing business and compliance policies, appointing suitable management personnel and submitting the necessary regulatory application. Banshi Group assists clients with the documentation, incorporation and regulatory preparation involved in setting up a microfinance business.

What Is a Microfinance Company?

A microfinance company is an organisation involved in providing financial services to eligible borrowers, particularly individuals and households that may have limited access to conventional financial services.

Microfinance activities can support:

  • Small business activities
  • Self-employment
  • Livelihood generation
  • Rural and semi-urban communities
  • Women entrepreneurs
  • Small-scale enterprises
  • Low-income households

However, the legal structure and regulatory requirements depend on the type of microfinance activity proposed.

Important: A business cannot simply describe itself as an NBFC-MFI and begin regulated lending. The applicable RBI requirements and authorisation must be satisfied before carrying on regulated NBFC-MFI activities.