VakilkaroLegal me kuch bhi karo to Vakilkaro

Home Blog NBFC & Finance

NBFC & Finance

Fees Involved in Section 8 Microfinance Company Registration

VVakilkaro25 Jul 20259 min read
⚡ Quick Answer

In this blog, we’ll break down the exact fees involved in micro finance company incorporation, explain the Section 8 microfinance company registration procedure, and help you understand what it takes to set up a compliant, RBI-ready, and impact-driven institution. Types of Fees Involved in Section 8 Microfinance Company Registration The microfinance company registration fees are broken into government fees, professional charges, and optional add-ons based on your compliance needs.

Registering a Section 8 microfinance company in India involves various government and professional fees—from DSC and DIN to name approval and the Certificate of Incorporation (COI). Total costs typically range between ₹5,000 and ₹2,00,000+, depending on your structure and service provider. Understanding these costs upfront is essential to avoid compliance issues or delays. Vakilkaro offers expert support for drafting documents, filing SPICe+ and INC-12, and managing ROC queries—making the entire microfinance registration process seamless and legally sound. Whether you're an NGO, startup, or social entrepreneur, Vakilkaro ensures a transparent, efficient, and affordable registration experience.

Key Takeaways

  • The estimated cost for section 8 microfinance company registration can vary widely, typically ranging from ₹5,000 to ₹2,00,000 or more, depending on factors like the number of directors, the professional services engaged, and your specific compliance needs.
  • In this blog, we’ll break down the exact fees involved in micro finance company incorporation, explain the Section 8 microfinance company registration procedure, and help you understand what it takes to set up a compliant, RBI-ready, and impact-driven institution.
  • Types of Fees Involved in Section 8 Microfinance Company Registration The microfinance company registration fees are broken into government fees, professional charges, and optional add-ons based on your compliance needs.
  • Vakilkaro Services Include: Drafting MOA (objects clause must reflect microfinance activities) Drafting AOA Filing of INC-32 (SPICe+), INC-33, INC-34 Also applicable to: Section 8 micro finance company registration process Micro finance company licence Section 8 company doing microfinance business 5.
  • Government Fee: ₹2,000 Professional Fee: ₹5,000 – ₹25,000 (includes document prep, filing, response to MCA queries) Connects With: Section 8 microfinance company registration cost Micro finance company under Section 8 Microfinance company under Section 8 7.

Understanding the Cost Structure for Section 8 Microfinance Company Registration in India

Setting up a Section 8 microfinance company registration in India is a rewarding step for those aiming to promote financial inclusion and serve underserved communities. However, to begin this journey on the right note, it’s crucial to understand the complete cost structure involved in the microfinance company registration process. From obtaining the Digital Signature Certificate (DSC) and Director Identification Number (DIN) to getting name approval and securing the Certificate of Incorporation (COI)—each step requires both planning and investment.

The estimated cost for section 8 microfinance company registration can vary widely, typically ranging from ₹5,000 to ₹2,00,000 or more, depending on factors like the number of directors, the professional services engaged, and your specific compliance needs. These expenses are divided between mandatory government fees and optional but recommended professional charges.

To navigate this complex process efficiently, many entrepreneurs, NGOs, and startups choose to work with professional service providers like Vakilkaro. Vakilkaro offers comprehensive support—from drafting your Memorandum of Association and Articles of Association to filing key forms such as SPICe+, INC-12, and managing all ROC interactions. Their legal and compliance expertise ensures your registration is accurate, affordable, and aligned with regulatory standards.

Beyond the basic setup, Vakilkaro also provides valuable guidance on post-registration compliance, including GST registration, accounting, and annual filings—giving you peace of mind and long-term support.

Whether you're just exploring microfinance registration or ready to incorporate your vision into a legally recognized entity, understanding the full range of fees and documentation requirements is key to avoiding costly errors and delays. Vakilkaro's transparent pricing, expert execution, and tailored advice make them a preferred partner for successfully launching and maintaining a Section 8 microfinance company in India.

India’s growing demand for accessible credit has led to a significant increase in microfinance companies, especially those registered under Section 8 of the Companies Act, 2013. These companies play a pivotal role in providing financial services to underserved segments—rural populations, self-employed individuals, and small-scale businesses.

Whether you're a social entrepreneur, NGO, or financial professional, starting a Section 8 microfinance company is an impactful way to create sustainable economic change. But as noble as the mission is, it's critical to understand the financial and procedural costs involved in the microfinance company registration process.

From Digital Signature Certificate (DSC) and Director Identification Number (DIN) to name approval and Certificate of Incorporation (COI)—every step in the micro finance registration process involves statutory fees. Depending on the structure, location, and legal services chosen, the total cost can vary between ₹5,000 to over ₹2,00,000.

In this blog, we’ll break down the exact fees involved in micro finance company incorporation, explain the Section 8 microfinance company registration procedure, and help you understand what it takes to set up a compliant, RBI-ready, and impact-driven institution.

We’ll also highlight the role of professional partners like Vakilkaro, who streamline the mfi registration process and help you avoid hidden costs, delays, or compliance pitfalls.

What Is a Microfinance Company?

A microfinance company provides small loans and financial services to low-income groups who may not qualify for traditional bank loans. These organizations offer credit for income-generating activities, education, housing, or emergencies.

Since 2013, the preferred legal structure for microfinance company registration in India has been under Section 8 of the Companies Act, making them non-profit entities. These companies:

  • Reinvest profits for social objectives,
  • Operate without the intention of dividend distribution, and
  • Need no RBI license for operations under certain thresholds.

If you're aiming for microfinance company licence or full NBFC-MFI registration, that’s a separate route requiring RBI approval and higher capital. But Section 8 microfinance company registration offers a quicker, low-cost, and compliant option to start with.

Types of Fees Involved in Section 8 Microfinance Company Registration

The microfinance company registration fees are broken into government fees, professional charges, and optional add-ons based on your compliance needs.

Let’s go step-by-step:

Digital Signature Certificate (DSC)

What It Is:

A DSC is an electronic signature used for filing online forms with the Ministry of Corporate Affairs (MCA). Each director must have one.

Cost Range: ₹500 – ₹1,500 per director

How Many Required: Minimum 2 for a Section 8 company

Applicable To:

  • Section 8 microfinance company registration
  • Microfinance company under section 8
  • Micro finance company registration procedure

Director Identification Number (DIN)

What It Is:

Director Identification Number (DIN) is a unique ID assigned to every individual intending to become a company director in India.

Cost Range: ₹500 – ₹1,000 per DIN

How Many Required: Minimum 2 DINs needed

Relevant To:

Name Approval (RUN Form)

What It Is:

The company’s proposed name must be approved through the Reserve Unique Name (RUN) service on the MCA portal.

Government Fee: ₹1,000 (non-refundable)

Vakilkaro Tip: Choose a unique name that reflects your microfinance objective to avoid rejection.

Search Examples:

  • Section 8 company microfinance
  • Microfinance company registration as a Section 8 company
  • Micro finance section 8 company

SPICe+ Form & MOA/AOA Drafting

What It Is:

SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) includes e-filing for incorporation, PAN, TAN, and EPFO/ESIC registration.

No Govt Fee for Section 8 Companies, but Professional Drafting costs may apply.

Vakilkaro Services Include:

  • Drafting MOA (objects clause must reflect microfinance activities)
  • Drafting AOA
  • Filing of INC-32 (SPICe+), INC-33, INC-34

Also applicable to:

Certificate of Incorporation (COI)

What It Is:

Issued by the ROC after verifying documents. It legally establishes the company.

Cost: Included in SPICe+

Professional Handling Charges: ₹2,000 – ₹10,000 depending on service provider

Keywords:

  • COI for Section 8 microfinance
  • Microfinance registration
  • Section 8 micro finance company

Section 8 License Application (INC-12)

What It Is:

This is a mandatory step for all Section 8 companies. You must submit INC-12 to receive a license from the ROC.

Government Fee: ₹2,000

Professional Fee: ₹5,000 – ₹25,000 (includes document prep, filing, response to MCA queries)

Connects With:

Notarization, Stamp Duty & Document Preparation

What’s Included:

  • Director affidavits
  • INC-9 declarations
  • Address proofs

Cost Range: ₹1,000 – ₹5,000 depending on your state

Example States: Maharashtra, Delhi, Tamil Nadu have varying stamp duty slabs.

PAN & TAN Allotment

Included in SPICe+ at no extra cost.

Other Add-On Compliance Costs (Optional but recommended)

Service Cost Range

GST Registration ₹1,000 – ₹2,000

CIN Search/Verification Free

Annual Compliance Package ₹10,000 – ₹30,000/year

Accounting & Bookkeeping ₹3,000+/month

Auditor Appointment (ADT-1) ₹500 – ₹1,500

Total Estimated Cost of Section 8 Microfinance Company Registration

Cost Category Estimated Range

Govt Fees (DSC, DIN, RUN, INC-12) ₹4,500 – ₹6,000

Professional & Legal Fees ₹10,000 – ₹50,000

Optional Compliance Services ₹10,000 – ₹1,50,000

Total Cost (approx.) ₹5,000 – ₹2,00,000+

✅ Note: Costs vary based on state, service provider, number of directors, and optional add-ons.

Why Vakilkaro for Microfinance Company Registration?

Starting a microfinance section 8 company is complex and requires legal precision. From preparing a compliant MOA to managing license queries and responding to ROC notices—each step requires accuracy.

Vakilkaro’s specialized services for microfinance registration include:

  • End-to-end support in Section 8 microfinance company registration process
  • Real-time tracking of your INC-12 and SPICe+ applications
  • Expert drafting of MOA/AOA aligned with microfinance company registration procedure
  • Transparent breakdown of microfinance company registration fees
  • Affordable pricing based on your structure (NGO, trust, society, company)

They also help you prepare for the RBI microfinance registration process if you're planning to scale into an NBFC-MFI in the future.

FAQ: Microfinance Company Registration Fees & Process

Q1. Is GST registration mandatory for Section 8 microfinance companies?

Not mandatory until turnover crosses ₹20 lakh (₹10 lakh in some states), but recommended.

Q2. What’s the time frame for micro finance company incorporation?

Typically 20–30 working days, depending on document readiness and ROC workload.

Q3. Can I convert a society into a microfinance company?

No. A new microfinance company incorporation is required under Section 8.

Q4. Are there hidden costs?

Not with Vakilkaro. You get a transparent, upfront estimate with no surprise charges.

Conclusion

Starting a Section 8 microfinance company in India is a powerful step toward financial empowerment and social impact. While the process is simplified under SPICe+, understanding the full spectrum of registration fees, compliance needs, and professional requirements is critical to avoid delays and rejections.

With costs ranging from ₹5,000 to ₹2 lakh or more depending on the structure, it's essential to plan ahead. Whether you're just exploring micro finance company registration in Hindi, or you're ready to file your DIN and INC-12, having an expert team by your side makes all the difference.

Vakilkaro ensures your microfinance company registration under Section 8 is seamless, affordable, and legally compliant—helping you build the foundation for a sustainable, scalable, and impactful financial enterprise.

Ready to Register Your Section 8 Microfinance Company?

Contact Vakilkaro today for expert help in:

  • Drafting documents
  • Filing SPICe+ & INC-12
  • Managing ROC responses
  • Ensuring annual compliance

👉 Start with confidence. Grow with purpose.

Visit: www.Vakilkaro.com

Official External Resources

Use these primary/official sources to verify rules, forms, fees, timelines and regulatory updates before publication.

Frequently asked questions

Fees Involved in Section 8 Microfinance Company Registration+

In this blog, we’ll break down the exact fees involved in micro finance company incorporation, explain the Section 8 microfinance company registration procedure, and help you understand what it takes to set up a compliant, RBI-ready, and impact-driven institution. Types of Fees Involved in Section 8 Microfinance Company Registration The microfinance company registration fees are broken into government fees, professional charges, and optional add-ons based on your compliance needs.

V

Vakilkaro

Founder & Legal Tech Lead

Akash Verma VakilKaro ki technology aur legal-content team lead karte hain. Company registration, trademark aur compliance par likhte hain.