TaxTMI 
TaxTMI 
Micro Finance/Micro Credit as an object in the Object Clause of Memorandum of Association (MoA) of Section 8 companies registered under the Companies Act, 2013-Clarification
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....loor, 'A' Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi-I Dated:-30.05.2022 To The DGCoA, All Regional Directors, All Registrar of Companies, ROC, CRC, Manesar Subject: Micro Finance/Micro Credit as an object in the Object Clause of Memorandum of Association (MoA) of Section 8 compa....
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....aw, including changing their objects to prevent such companies from carrying out the micro finance activities. 3. The Office of DGCoA shall ensure strict compliance by all the ROCs of the instructions contained in the letters issued earlier by the Ministry on this subject. Further, the ROCs shall also circulate these directions to all the officers/ officials to ensure due examinatio....
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....rected to refer to letter no. CRC/Sec. 8/2017/666 dated 30.12.2019 on the captioned subject and directed to convey that incorporation of Micro-finance companies wider Section 8 of the Act is not feasible as they do not comply with any stringent criterion of Net owned fund as laid down in the RBI's Non-Banking Financial Company -Micro Finance Institutions (Reserve Bank) Directions of 2011 and t....
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....o convey that this Ministry has already issued directions to CRC vide letter dated 10.02.2020 (copy enclosed) for not allowing incorporation of Micro-finance companies under Section 8 of the Act as they do not comply with any stringent criterion of Net owned fund (NOF) as laid down in the RBI's Non-Banking Financial Company -Micro Finance Institutions (Reserve Bank) Directions of 2011. However....