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From the Vakilkaro blog
Practical guides on registration, trademark, tax, NGO and compliance — written and reviewed by our legal team.
NBFC & FinanceName Approval Guide for Microfinance Company
Name Approval is the process of obtaining approval for the proposed name of a Section 8 Microfinance Company before incorporation. The proposed name should comply with the applicable legal requirements, should not be ide
NBFC & FinanceNGO License for Microfinance
A Section 8 Microfinance Company does not receive a single "NGO License." Instead, it is incorporated as a Section 8 Company under the Companies Act, 2013. Depending upon its activities and future plans, the organisation
NBFC & FinanceMicrofinance Business Model Guide
A Microfinance Business Model explains how a Section 8 Microfinance Company plans, delivers and manages financial inclusion programmes. It generally covers beneficiary identification, loan assessment, documentation, disb
NBFC & FinanceMSME Guide for Microfinance
MSME Registration, also known as Udyam Registration, is an online registration available for eligible enterprises under the MSME framework. Where a Section 8 Microfinance Company satisfies the applicable eligibility requ
NBFC & FinanceMOA Guide for Microfinance
A Memorandum of Association (MOA) is the constitutional document of a company that defines its name, registered office, objectives, liability, membership and capital-related provisions (where applicable). For a Section 8
NBFC & FinanceLoan Sanction Guide for Section 8 Microfinance Company
Loan Sanction is the formal approval stage in the lending process where a Section 8 Microfinance Company decides whether a loan application should be approved after completing borrower onboarding, documentation, verifica
NBFC & FinanceLoan Recovery Guide for Section 8 Microfinance Company
The Loan Recovery Process is the operational procedure through which a Section 8 Microfinance Company follows up on scheduled repayments and overdue loan accounts in accordance with its approved recovery policy, operatio
NBFC & FinanceLoan Policy for Microfinance Company
A Loan Policy is an internal governance document that explains how a Section 8 Microfinance Company evaluates, approves, disburses, monitors and manages eligible financial assistance. It provides a structured framework f
NBFC & FinanceLoan Documentation for Microfinance Company
Loan Documentation is the process of collecting, verifying, organising and maintaining all records relating to a loan application, assessment, approval, disbursement, monitoring and repayment. A professionally managed Se
NBFC & FinanceLoan Disbursement Guide for Section 8 Microfinance Company
Loan Disbursement is the operational process through which an approved loan amount is released to an eligible borrower after completing all applicable pre-disbursement requirements. A professionally managed Section 8 Mic
NBFC & FinanceLoan Compliance Guide for Section 8 Microfinance Company
Loan Compliance is the ongoing process of ensuring that lending activities are conducted in accordance with the organisation's policies, internal controls and the applicable legal and regulatory framework. For a Section
NBFC & FinanceLoan Application Guide for Section 8 Microfinance Company
The Loan Application Process is the structured procedure through which a borrower submits a request for a loan and the organisation reviews it in accordance with its approved lending policy and the applicable legal and r
NBFC & FinanceLimitations of Section 8 Microfinance
A Section 8 Microfinance Company offers numerous benefits, but it also comes with important responsibilities. Common limitations include ongoing compliance obligations, governance requirements, documentation standards, o
NBFC & FinanceInvestment Readiness for Microfinance
Investment Readiness refers to the organisational preparedness required to attract institutional funding and long-term strategic partnerships. For a Section 8 Microfinance Company, investment readiness generally includes
NBFC & FinanceIEC Guide for Microfinance
Import Export Code (IEC) is a registration issued by the Directorate General of Foreign Trade (DGFT) for eligible organisations intending to undertake import or export activities. A Section 8 Microfinance Company should
NBFC & FinanceGrant Ready Microfinance Guide
A Grant Ready Section 8 Microfinance Company is an organisation that has established proper governance, financial transparency, documentation, programme management and compliance systems before applying for grants. Grant
NBFC & FinanceGST Guide for Microfinance
A Section 8 Microfinance Company is not automatically required to obtain GST registration simply because it is incorporated as a Section 8 Company. GST registration depends upon the nature of activities, taxable supplies
NBFC & FinanceFCRA Guide for Section 8 Microfinance Company
FCRA Registration is a registration under the Foreign Contribution (Regulation) Act, 2010 that allows eligible organisations to receive foreign contribution in accordance with the applicable legal framework. In certain s
NBFC & FinanceDonation Management for Section 8 Microfinance
Donation Management is the process of receiving, recording, tracking, accounting for and reporting donations received by a Section 8 Microfinance Company. A professionally managed donation system includes donor records,
NBFC & FinanceDocuments Required for Microfinance
The documents required for Section 8 Microfinance Company Registration generally include identity and address proof of the proposed directors, registered office documents, incorporation documents, organisational informat
NBFC & FinanceDigital Microfinance Guide
Digital Microfinance refers to the use of technology to manage lending operations, customer records, documentation, accounting, reporting and internal controls. A professionally managed Section 8 Microfinance Company can
NBFC & FinanceDSC Guide for Microfinance Company
A Digital Signature Certificate (DSC) is a secure electronic signature used to digitally sign documents filed online with government authorities. During Section 8 Microfinance Company Registration, every proposed directo
NBFC & FinanceDIN Guide for Microfinance Company
A Director Identification Number (DIN) is a unique identification number issued under the Companies Act, 2013 to an individual who intends to serve as a director of a company. Every proposed director of a Section 8 Micro
NBFC & FinanceDARPAN Registration for Section 8 Microfinance
NGO DARPAN Registration is an online registration through the NGO DARPAN Portal, associated with the Government of India, that provides eligible organisations with a Unique ID. For an eligible Section 8 Microfinance Comp