FSSAI Registration and License Process Explained

May 22, 2025
Private Limited Company vs. Limited Liability Partnerships

If you’re running a food business in India, chances are you’ve heard about FSSAI. But what exactly is it, and why is it so important? FSSAI stands for the Food Safety and Standards Authority of India- the apex regulatory body responsible for ensuring food safety and hygiene standards across the country.

For any food-related business operating in India, obtaining an FSSAI registration or license is mandatory. This ensures that the business complies with the Food Safety and Standards Act, 2006, enhancing consumer trust and legal credibility.

In this blog, we’ll walk you through everything you need to know about FSSAI, from types of licenses and who needs them, to how to apply, what documents you need, and even penalties if you don’t comply.

Table of Contents

FSSAI Registration

FSSAI Registration is the basic license issued to small-scale food businesses by the state food safety authorities. It applies primarily to small food business operators (FBOs) whose turnover falls below a certain threshold and who operate within a single state.

This registration is essential to legally operate a food business and ensures compliance with food safety norms. However, for larger businesses or those operating across multiple states, an upgraded license (State or Central License) is required.

Food Business Operators Who Need FSSAI Registration?

The following food businesses typically require FSSAI Registration:

  • Small Manufacturers: Small-scale producers of food items with limited turnover.
  • Transporters: Entities involved in the transportation of food within the state.
    Retailers: Small shops, grocery stores, or vendors selling food products directly to consumers.
  • Small Food Businesses: Street food vendors, hawkers, or home-based food businesses.
  • Medium Food Businesses: Hotels, Restaurants & Bars

Types of FSSAI Registration

Beyond legal compliance, filing ITR offers several advantages:

Type of License Turnover Limit Operational Scale Issued By
Basic Registration Up to INR 12 Lakhs annually Small food businesses within one state State authority
State License INR 12 Lakhs to 20 Crores Medium-sized businesses operating within a state State authority
Central License Above INR 20 Crores Large businesses, importers, exporters and interstate operations Central authority

Benefits of Obtaining an FSSAI Food License

Obtaining an FSSAI license offers multiple advantages:

  • Consumer Trust: Shows commitment to food safety, increasing customer confidence.
  • Legal Compliance: Avoids penalties and legal issues by following regulations.
  • Business Expansion: Facilitates scaling operations across states and international markets.
  • Brand Credibility: Enhances brand image by adhering to recognised safety standards.
  • Access to New Markets: Many retailers and e-commerce platforms require FSSAI certification.

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FSSAI Registration Eligibility

Below is the eligibility criteria for FSSAI registration:

  • Annual turnover up to ₹12 lakhs.
  • Operates only within a single state.
  • Includes small-scale manufacturers, traders, retailers, hawkers, and temporary stall owners.

FSSAI License Eligibility

Businesses requiring State or Central Licenses typically fulfil these conditions:

  • Annual turnover between ₹12 lakhs and ₹20 Crores (State License).
  • Annual turnover exceeding ₹20 crores (Central License).
  • Operations across multiple states or involved in import/export.
  • Large-scale food processors and manufacturers.

Food Capacity Limit Required for Obtaining FSSAI Registration

License Type Production/Handling Capacity
Basic Registration Up to 100 kg or 100 litres per day
State License Between 100 kg/litres to 2 tons per day
Central License Above 2 tons per day

Note: These limits may vary based on specific food categories and local regulations.

Documents Required for Obtaining the FSSAI Registration/License

Common documents needed include:

  • Identity Proof (Aadhar, PAN Card)
  • Address Proof of Business Premises (Rent Agreement/Utility Bill)
  • Passport-sized Photographs of the Applicant
  • Certificate of Incorporation (for companies)
  • Food Safety Management Plan or Statement of Food Products
  • NOC from the local municipality or health department
  • Proof of possession of premises (ownership or lease)

How to Apply for FSSAI Registration Online?

Applying for an FSSAI Registration or License online is a straightforward process — and the best part is, you can do it all from the comfort of your home or office.

Step 1: Visit the Official FSSAI Website

Head over to the official Food Safety Compliance System (FoSCoS) portal: https://foodlicensing.fssai.gov.in

Step 2: Create an Account

Click on “Sign Up” and fill in your details like name, mobile number, email ID, and state of operation. Once registered, you’ll receive login credentials via email or phone.

Step 3: Fill in the Application Form

After logging in, choose the appropriate license type based on your business size and turnover (Basic, State, or Central). Then, fill in the required details such as:

  • Business name and address
  • Type of food business (manufacturer, distributor, caterer, etc.)
  • Contact information
  • Business turnover and food handling capacity

Step 4: Upload Required Documents

Upload scanned copies of all the necessary documents.

Step 5: Pay the Application Fee

Once the form is complete and documents are uploaded, proceed to pay the applicable fee online. The amount depends on the license type and duration selected (1–5 years).

Step 6: Submit the Application

Double-check all details before clicking “Submit”. Once submitted, you’ll receive an application reference number which you can use to track your status.

Step 7: Track Your Application Status

Use the “Track Application” feature on the dashboard to monitor progress. You’ll receive notifications if additional info or documents are required.

Once submitted, your application will be reviewed by the local food safety officer. They may conduct a physical inspection (for licenses) or approve the application directly (for Basic Registrations). Upon approval, you’ll receive your FSSAI certificate online.

FSSAI License Cost & Validity

License Type Fee Structure Validity
Basic Registration INR 100 per year 1 to 5 years
State License INR 2000 to 5000 per year 1 to 5 years
Central License INR 7500 per year 1 to 5 years

Costs may vary based on license duration and type.

FSSAI Registration Status

How to Check Status:

  1. Visit the FSSAI portal.
  2. Log in using registered credentials.
  3. Navigate to the “Application Status” section.
  4. Enter your Application/Registration number.
  5. View the current status (Pending, Approved, Rejected).

FSSAI Penalty and Offences

The Food Safety and Standards Authority of India (FSSAI) takes food safety very seriously — and rightly so. Non-compliance can lead to hefty penalties, legal action, or even imprisonment, depending on the nature and severity of the offense.

Here’s a breakdown of common offences under the Food Safety and Standards Act, 2006, and their corresponding penalties:

Offense Penalty
Operating without a license Fines up to ₹5 lakh or jail time
Selling adulterated or misbranded food Fines up to ₹10 lakh
Selling unsafe or substandard food Imprisonment and fines
Not following food safety standards Penalties depend on the violation

Renewal of FSSAI License

Renew your license at least 30 days before it expires. The process is similar to applying for a fresh — just log in, fill out renewal forms, upload updated documents, and pay the fees. Missing renewal deadlines can lead to fines or even suspension of your license.

FSSAI License for Cloud Kitchen

Cloud kitchens, operating without a physical dine-in space, are also required to obtain FSSAI licenses. Typically, they fall under:

  • Basic Registration: If turnover and scale are small.
    State License: For larger cloud kitchens with higher turnover.

The application process is the same, focusing on food safety management specific to cloud kitchens.

Conclusion

FSSAI registration and licensing are essential for any food business in India. They help keep your customers safe, build your brand, and keep you on the right side of the law.

So, if you're running any kind of food business, be it a small catering outfit, a packaged snack brand, or an export-oriented manufacturing unit, FSSAI must be part of your growth strategy. It’s a small step toward compliance, ensuring that you’re meeting the highest standards of food safety and hygiene.

Frequently Asked Questions

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  • Businesses looking to issue shares
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  • Service-based businesses
  • Businesses looking to issue shares
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One Person Company
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1,499 + Govt. Fee
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Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is the difference between an FSSAI license and registration?

Proprietorship compliance refers to the set of legal, financial, and tax-related requirements that a sole proprietorship must fulfil. This includes:

  • FSSAI Registration is for small food businesses with an annual turnover of up to ₹12 lakh. It’s a basic registration issued by the State Authority.
  • An FSSAI License is required for larger businesses and is categorised into:
    • State License (₹12 lakh–₹20 crore turnover, within one state)
    • Central License (above ₹20 crore turnover or interstate operations)

Is GST compulsory for an FSSAI license?

No, GST is not mandatory to obtain an FSSAI license or registration. However, for certain food businesses, especially those that sell online or supply to other businesses, having a GST registration can be beneficial or even required.

Who is eligible for FSSAI?

Any Food Business Operator (FBO) involved in manufacturing, processing, storing, distributing, or selling food in India is eligible and required to get FSSAI registration or a license. This includes:

  • Home-based food sellers
  • Restaurants, cafes, and cloud kitchens
  • Food processors and repackers
  • Online food sellers
  • Importers/exporters of food products

What is What is the minimum turnover for an FSSAI license?the turnover limit for a proprietorship?

  • Basic FSSAI Registration: Turnover up to ₹12 lakh/year
  • State License: Turnover between ₹12 lakh and ₹20 crore/year
  • Central License: Turnover above ₹20 crore/year or operating in multiple states

Is an FSSAI license mandatory for small businesses?

Yes. Even small food businesses, such as home kitchens, hawkers, and petty retailers, must obtain Basic FSSAI Registration. It's a legal requirement under the FSS Act, 2006, to ensure food safety.

What is the fee for an FSSAI license for 5 years?

Fees depend on the type of license:

  • Basic Registration: ₹100/year
  • State License: ₹2,000 to ₹5,000/year
  • Central License: ₹7,500/year

Is an FSSAI license mandatory for a home kitchen?

Yes, if you are preparing food at home for commercial sale (e.g., home tiffin services, catering), you must register with FSSAI under Basic Registration.

How can I check if my FSSAI license is real or fake?

Yes, if you are preparing food at home for commercial sale (e.g., home tiffin services, catering), you must register with FSSAI under Basic Registration.

  • Visit the FSSAI License Check Portal
  • Enter your FSSAI License or Registration Number to verify details like:
    • Business name
    • Validity
    • Type of license
    • Status (Active/Expired)

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

Read More

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Characteristics of Private Limited Company - Razorpay Rize

Characteristics of Private Limited Company - Razorpay Rize

Table of Contents

What is a Private Limited Company?

A Private Limited Company is a business structure in India registered under the Companies Act, 2013. It is a separate legal entity from its owners, with its own rights and liabilities. Characteristics of private company include limited liability for shareholders, restrictions on share transfers, and a minimum of two members.

Under Section 2(68) of the Companies Act, 2013, a Private Limited Company is defined as a company that restricts the right to transfer its shares, limits the number of members to 200 (excluding employees), and prohibits any invitation to the public to subscribe for its securities.

Characteristics of a Private Limited Company

Characteristics of private companies make it a preferred business structure for growing startups and SMEs in India. A Private Limited Company has several distinct characteristics that define its structure, ownership, and operations. Features of a private limited company such as limited liability, perpetual succession, easier fundraising, and professional image help entrepreneurs scale their business while mitigating risks. Understanding these features of a private limited company is crucial for entrepreneurs considering this business model. These include:

Separate Legal Entity

A Private Limited Company is a separate legal entity from its shareholders. This means the company can enter into contracts, own assets, incur liabilities, and sue or be sued in its own name. The company's existence is independent of its members, providing continuity and perpetual succession.

Limited Liability of Members

One of the biggest advantages of a Private Limited Company is the limited liability protection it offers to its shareholders. The liability of members is limited to the amount of share capital they have subscribed to. Their personal assets are protected in case the company faces losses or legal issues. This reduces the financial risk for shareholders.

Minimum and Maximum Members

A Private Limited Company requires a minimum of two members and can have a maximum of 200 members (excluding employees). These members can be individuals, other companies, or foreign entities. Having multiple shareholders allows for pooling of resources and expertise.

Restriction on Share Transfer

Shares of a Private Limited Company cannot be freely transferred to the public. Any transfer of shares requires the approval of the company's Board of Directors. The right to transfer shares is restricted by the company's Articles of Association, and existing shareholders have the first right to purchase any shares offered for sale. This helps maintain control over ownership.

Minimum Capital Requirement

There is no minimum capital requirement for incorporating a Private Limited Company in India. This makes it easier for startups and small businesses to adopt this structure without significant upfront investment. However, the company's authorized and paid-up capital must be mentioned in its Memorandum of Association.

Perpetual Succession

A Private Limited Company has perpetual succession, which means its existence is not affected by the entry or exit of members. The company continues to operate even if all the original shareholders and directors change over time, providing stability and continuity for the business.

Use of "Private Limited" in Name

A Private Limited Company must use the words "Private Limited" or "Pvt Ltd" at the end of its name. This helps distinguish it from public limited companies and sole proprietorships. The name should not be identical or too similar to any existing company to avoid confusion.

Mandatory Registration

Incorporation of a Private Limited Company is mandatory and must be registered with the Registrar of Companies (ROC). The company comes into existence only upon registration and is given a Certificate of Incorporation. This is different from sole proprietorships and partnerships, which can operate without formal registration.

Statutory Compliance

Private Limited Companies are subject to various statutory compliances under the Companies Act, 2013. These include conducting board meetings, maintaining statutory registers and records, filing annual returns, and appointing auditors. Non-compliance can lead to penalties and legal consequences.

Documents Required to Register a Private Limited Company

1. Director Identification Number (DIN) for each proposed director

2. Digital Signature Certificate (DSC) for each proposed director

3. Proof of identity and address for directors and shareholders

4. Proof of registered office address

5. Memorandum of Association (MOA) and Articles of Association (AOA)

6. Consent letters from directors

7. PAN card of directors and shareholders

8. Passport-size photographs of directors

Process to Register Private Limited Company

Incorporating a Private Limited Company involves obtaining Director Identification Number (DIN), Digital Signature Certificate (DSC), and filing necessary documents required for pvt ltd registration. Seeking professional advice from legal and financial experts can help navigate the registration process smoothly. The process of registering a Private Limited Company involves the following steps:

  1. Obtain Director Identification Number (DIN) for each proposed director: Directors must apply for a DIN through the SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form. DIN can also be applied during incorporation.
  2. Acquire Digital Signature Certificate (DSC) for each proposed director: All directors and shareholders must obtain a Class 3 Digital Signature Certificate (DSC). The DSC is used to sign forms electronically during the registration process.
  3. Select and apply for a unique company name through the RUN (Reserve Unique Name) service: Use the RUN (Reserve Unique Name) service on the MCA portal to propose a unique company name. Ensure compliance with the Companies Act, 2013 and avoid prohibited or identical names.
  4. Draft the Memorandum of Association (MOA) and Articles of Association (AOA): Draft key documents, including:
  • Memorandum of Association (MoA) – Defines the company’s objectives.
  • Articles of Association (AoA) – Details operational rules and regulations. Obtain affidavits, declarations, and consent from directors.
  1. File the SPICe+ form along with required documents and payment of fees: Submit the SPICe+ form on the MCA portal with DSC. Attach MoA, AoA, and applications for PAN, TAN, and GST registration (if applicable). Pay the required fees and stamp duty online.
  2. Obtain Certificate of Incorporation from ROC upon successful registration: Upon approval, the Certificate of Incorporation is issued by the Registrar of Companies (RoC). This includes the Company Identification Number (CIN), confirming legal status.

{{pvt-cta}}

Types of Private Limited Companies

Based on the liability of members, Private Limited Companies can be categorised into three types:

  1. Company Limited by Shares: The liability of members is limited to the amount unpaid on their shares. This is the most common type of Private Limited Company.
  2. Company Limited by Guarantee: The liability of members is limited to the amount they have agreed to contribute to the company's assets in the event of its winding up.
  3. Unlimited Company: Members' liability is unlimited. They are liable for the company's debts and obligations.

Frequently Asked Questions:

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Register your Limited Liability Partnership in just 1,499 + Govt. Fee

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What are the benefits of a private limited company?

Some key benefits of a private limited company include limited liability protection for shareholders, better credibility and professional image, perpetual succession, easier access to funding, and ability to offer Employee Stock Options (ESOPs).

What is the difference between pvt ltd and llp?

Private Limited Company vs. Limited Liability Partnerships: A Private Limited Company has shareholders and directors, while an LLP has partners. LLPs have lesser compliance requirements compared to Private Limited Companies. However, Private Limited Companies offer more flexibility in ownership structure and fundraising.

Who is the owner of Pvt Ltd?

The owners of a Private Limited Company are its shareholders. The ownership is determined by the number of shares held by each member. The shareholders appoint directors to manage the day-to-day operations of the company.

How much tax does a private limited company pay?

Private Limited Companies are taxed as separate legal entities. The corporate tax rate is 25% for companies with an annual turnover of up to Rs. 400 crores (as of FY 2021-22). Surcharge and cess are applicable based on the company's income level.

What are the tax benefits of Pvt Ltd company?

Private Limited Companies can avail several tax benefits and deductions, such as:

  • Deduction of business expenses incurred wholly for the purpose of the business
  • Depreciation on fixed assets
  • Carry forward and set off of losses
  • Deductions for employee welfare expenses
  • Deductions for donations made to charitable organizations

Is GST required for a private limited company?

Yes, a Private Limited Company is required to register for Goods and Services Tax (GST) if its annual turnover exceeds the threshold limit (Rs. 40 lakhs for goods and Rs. 20 lakhs for services, as of FY 2021-22). GST registration is mandatory for companies engaged in inter-state transactions, irrespective of turnover.

ROC Compliance Calendar 2025–2026: Important Filing Due Dates for Companies & LLPs

ROC Compliance Calendar 2025–2026: Important Filing Due Dates for Companies & LLPs

Companies and LLPs in India are legally obligated to comply with annual filing requirements under the Companies Act, 2013, and the Limited Liability Partnership Act, 2008. These filings with the Registrar of Companies (ROC) must be completed annually or triggered by specific events. Timely compliance is crucial for companies and LLPs to avoid substantial penalties that can negatively impact business operations and reputation.

Table of Contents

The ROC is a regulatory body under India's Ministry of Corporate Affairs (MCA) responsible for company registration, statutory record maintenance, and ensuring adherence to the Company Act and associated regulations. Non-compliance with ROC filings can result in:

  • Fines and penalties
  • Legal actions against the company and directors
  • Damage to the company's credibility and reputation
  • Difficulties in seeking funding or partnerships

On the other hand, timely compliance demonstrates a commitment to transparency and good governance, which can attract customers, partners, and investors. It also helps avoid heavy penalties and late fees that can strain a company's finances.

ROC Filing Due Date: Detailed Calendar

Here are the key ROC compliance forms and ROC filing due dates for the financial year 2025-2026:

Form Purpose Applicable To Due Date
MSME-1 Reporting outstanding payments to MSMEs > 45 days All specified companies 30.04.2025 (Oct–Mar) 31.10.2025 (Apr–Sep)
NDH-3 Half-yearly return filing for Nidhi companies Nidhi companies 30.04.2025 (Oct–Mar) 30.10.2025 (Apr–Sep)
Form-11 (LLP) Annual return of LLP with business and partner details All registered LLPs 30.05.2025
FC-4 Annual return of foreign company Foreign companies 30.05.2025
NDH-1 Return of statutory compliances Nidhi companies (as applicable) 29.06.2025
DPT-3 Reporting deposits and loans Every company 30.06.2025
PAS-6 Share Capital Audit Report Reconciliation Unlisted public companies 30.05.2025 (Mar) 29.11.2025 (Sep)
FLA Annual return to RBI for FDI/ODI holders Companies with FDI/ODI 15.07.2025
DIR-3 KYC KYC of Directors/DPs All DIN/DPIN holders as on 31.03.2025 30.09.2025
FC-3 Filing annual accounts of foreign company Foreign companies’ branches, liaison, and project offices 31.12.2025
CRA-2 Appointment of Cost Auditor Companies requiring cost audit 30 days from BM or 180 days from 01.04.2025, whichever is earlier
ADT-1 Appointment of Auditor Every company 14.10.2025 (15 days post AGM) 11.10.2025 (OPC)
AOC-4 / XBRL / CFS Filing of annual financial statements Specified companies 29.10.2025 (30 days from AGM) 27.09.2025 (OPC)
MGT-14 Filing resolutions on board report and accounts adoption Limited companies 30 days from board meeting
Demat for Pvt Cos Mandatory demat compliance under amended rules Private companies (excluding small/govt. companies) 30.06.2025
Form-8 (LLP) LLP’s Statement of Account & Solvency Every LLP 30.10.2025
MGT-7 / MGT-7A Annual return with company details MGT-7: All companies MGT-7A: Small Co. / OPC 28.11.2025
CRA-4 Filing of Cost Audit Report Companies under cost audit 30 days from receipt of cost audit report
CSR-2 Reporting on Corporate Social Responsibility contribution Companies required to comply with CSR provisions Due date generally aligns with AOC-4 filing

It's important to note that these ROC filing due dates are tentative and may be revised by the regulatory authority from time to time. Additionally, certain event-based compliances are also applicable in addition to these basic annual compliance obligations. It's crucial to keep track of the applicable due dates for each form to ensure timely compliance and avoid penalties.

Frequently Asked Questions

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Register your Business starting at just 1,499 + Govt. Fee

Register your business
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Register your Limited Liability Partnership in just 1,499 + Govt. Fee

Register your business

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is the due date for ROC filing?

The due dates for ROC filing vary depending on the specific form and the company's financial year-end. Key due dates include:

  • Form-11 (LLP): Within 60 days from the end of the Financial Year
  • DPT-3: On or before 30th June
  • DIR-3 KYC: 30th September
  • AOC-4: Within 30 days of AGM conclusion
  • MGT-7: Within 60 days from AGM conclusion

Refer to the detailed list of forms and due dates in the article for more information.

How to check ROC compliance status?

You can check your company's ROC compliance status by following these steps:

  1. Visit the Ministry of Corporate Affairs (MCA) website: www.mca.gov.in
  2. Click on the "MCA Services" tab and select "View Company/LLP Master Data"
  3. Enter your Company Identification Number (CIN) or Limited Liability Partnership Identification Number (LLPIN) and captcha code

Click on "Submit" to view your company's master data, which includes the compliance status for various filings

What are the ROC compliances?

ROC compliances refer to the mandatory filings and disclosures that companies and LLPs must make with the Registrar of Companies (ROC) as per the Companies Act, 2013, and the Limited Liability Partnership Act, 2008. These include:

  • Annual filings such as AOC-4 (Financial Statements), MGT-7 (Annual Return), and Form-11 (Annual Return for LLPs)
  • Event-based filings such as PAS-6 (Share Capital Audit Report Reconciliation), ADT-1 (Appointment of Auditor), and MGT-14 (Filing of Resolutions)
  • KYC filings such as DIR-3 KYC for directors and designated partners
  • Other filings like DPT-3 (Return of Deposit), MSME-1 (Outstanding Payments to MSMEs), and CSR-2 (Corporate Social Responsibility Contribution)

How to do ROC form filing?

To file ROC forms, follow these general steps:

  1. Obtain a Digital Signature Certificate (DSC) for the authorised signatory
  2. Register on the MCA portal (www.mca.gov.in) using the DSC
  3. Select the appropriate e-Form from the MCA portal
  4. Fill in the required details and attach necessary documents
  5. Pay the applicable filing fees online
  6. Digitally sign the e-Form using the DSC
  7. Submit the e-Form on the MCA portal

Note that the specific process may vary slightly depending on the form being filed. It's advisable to consult a professional or refer to the MCA's detailed instructions for each form.

Are the forms that need to be filed with ROC monthly or yearly?

Most ROC forms are filed annually or based on specific events, rather than monthly. Some key annual filings include:

  • AOC-4 (Financial Statements)
  • MGT-7 (Annual Return)
  • Form-11 for LLPs (Annual Return)
  • DIR-3 KYC for directors and designated partners

However, certain forms like MSME-1 (Outstanding Payments to MSMEs) and PAS-6 (Share Capital Audit Report Reconciliation) are filed half-yearly. Event-based filings such as ADT-1 (Appointment of Auditor) and MGT-14 (Filing of Resolutions) are submitted as and when the relevant events occur.

A Comprehensive Guide on Micro Finance Company Registration

A Comprehensive Guide on Micro Finance Company Registration

Micro Finance Companies (MFCs) are changing lives by making financial services accessible to people who are often overlooked by traditional banks. These companies focus on helping low-income individuals, small business owners, and self-employed people by offering small loans and basic financial support.

By doing so, they promote financial inclusion and play a key role in empowering communities and boosting local economies. However, like any financial institution, Micro Finance companies need to be registered and follow specific rules and regulations to operate legally and build credibility.

In this blog, we’ll walk you through everything you need to know about registering a Micro Finance Company in India- from understanding what they do, to the steps, documents, and costs involved in the registration process.

Table of Contents

What is a Micro Finance Company?

A Micro Finance Company is a financial institution that provides small loans and financial services to low-income individuals, self-employed persons, and small enterprises who lack access to conventional banking services.

These companies play a vital role in empowering economically weaker sections, supporting entrepreneurial initiatives, and fostering local economic development by promoting financial inclusion.

Features of Micro Finance Company

Micro Finance Companies are characterised by:

  • Providing small-ticket loans, typically without the need for collateral
  • Targeting low-income, rural, and unbanked populations
  • Offering simplified and accessible loan approval processes
  • Promoting financial literacy and inclusive banking

Objectives of Micro Finance Company

The main objectives of an MFC include:

  • Promoting financial inclusion for low-income individuals
  • Empowering women and self-employed entrepreneurs
  • Supporting small businesses and farming communities
  • Encouraging savings and responsible financial behaviour
  • Driving sustainable economic growth in underserved areas

Need for Micro Finance Company

There is a growing need for MFCs due to the lack of access to formal credit channels among the financially marginalised. Traditional banks often require credit history and collateral, which many low-income individuals cannot provide.

MFCs bridge this gap by offering unsecured loans and financial products tailored to the needs of small businesses, farmers, and micro-entrepreneurs.

Roles of a Micro Finance Company

Micro Finance Companies perform various functions that support economic empowerment:

  • Disbursing microloans to low-income individuals and small enterprises
  • Offering savings schemes and recurring deposit products
  • Providing insurance and risk mitigation solutions
  • Conducting financial literacy and awareness programs

Prerequisites for Microfinance Company Registration

A Micro Finance Company (MFC) can be registered either as an NBFC or as a Section 8 Company. The prerequisites vary depending on the type of entity you choose.

Prerequisites NBFC Section 8
Approval by the RBI It is mandatory It is not required
Net Owned Fund (NOF) Requires a minimum NOF of ₹5 crores There is no minimum requirement
Loan Limit It should be a maximum of 10% of the total assets There is a provision for an unsecured loan of around Rs. 50,000 to small businesses
Director Experience At least one director with 10 years of experience in financial services No prior experience required
No. of members Minimum members:
Private Limited Company- 2
Public Limited Company - 7
Minimum of 2 members
Status of Organisation Profitable Organisation Non-profit Organisation

Documents Required for Micro Finance Company Registration

Key documents include:

  • Identity and address proof of directors
  • Memorandum and Articles of Association
  • Business plan and financial projections
  • RBI approval (for NBFCs)
  • Certificate of Incorporation (for Section 8 companies)
  • Net Owned Fund certificate (for NBFCs)
  • Copy of Auditor’s report
  • Banker’s report copy
  • Recent credit report of the directors
  • Net worth certificate of the directors
  • Proof of work experience in the financial sector
  • Tax and statutory compliance documents

Micro Finance Company Registration as an NBFC

Given the two different approaches to forming a microfinance company, the registration process for an NBFC-MFI follows a specific set of steps:

  1. Company Incorporation:
    The first step is to register your business as either a Public Limited or a Private Limited Company. A private company requires a minimum of 2 members and a capital of ₹1 lakh, while a public company requires at least 7 members.
  2. Capital Requirement:Next, you must raise the minimum required Net Owned Funds (NOF)- ₹5 crore for most regions.
  3. Capital Deposit:
    Once the capital is raised, it must be deposited in a bank as a fixed deposit, and a ‘No Lien’ certificate must be obtained from the bank to confirm the funds are unencumbered.
  4. RBI License Application:
    The company must then apply for an NBFC license by submitting an online application through the RBI’s portal, along with all necessary certified documents. Additionally, a physical copy of the application and documents must be submitted to the RBI’s regional office.
  5. All documents should be readily available with the company at the time of filing.

Micro Finance Company Registration as a Section 8 Company

Alternatively, a Micro Finance company can be registered as a Section 8 Company, which is a not-for-profit entity. The steps involved in this process are:

  1. Obtain DSC:
  2. Begin by applying for the Digital Signature Certificate (DSC) for all proposed directors. The DSC is essential for digitally signing e-forms during the registration process.
  3. Name Approval:
  4. Next, apply for name approval using the SPICe+ form. The chosen name should reflect the company's non-profit nature- suggested words include Foundation, Sanstha, or Micro Credit.
  5. Draft and File MOA & AOA:
  6. Once the name is approved, prepare the Memorandum of Association (MOA) and Articles of Association (AOA). These must be filed along with the necessary supporting documents.
  7. Submit Incorporation Documents:
  8. Finally, all relevant incorporation documents, including Form INC-12, must be filed to obtain the license to operate as a Section 8 company.

Micro Finance Company Registration Fees

Registration fees vary based on the chosen structure:

  • NBFCs: Government registration charges, RBI license fee, legal and consultancy fees, and compliance setup costs.
  • Section 8 Companies: Lower fees due to no capital requirement; includes MCA license charges, incorporation costs, and legal consultations.

Registration Process of the Company with the RBI

Step 1: Register the Brand Name as a Trademark

Before proceeding with the RBI registration, it’s important to secure your brand identity. Registering your brand name or logo as a trademark under the Trademarks Act, 1999, ensures legal protection and exclusive rights to use the name across India.

Step 2: Incorporate the Company and Obtain a Certificate of Incorporation

Begin by registering your business as a Private Limited or Public Limited Company under the Companies Act, 2013 via the Ministry of Corporate Affairs (MCA) portal.
You will receive a Certificate of Incorporation (CoI) upon approval, which acts as the legal foundation for your microfinance company.

Step 3: Deposit Capital and Obtain No Lien Certificate

Raise the required Net Owned Funds (NOF)—₹5 crore (₹2 crore for northeastern states)—and deposit it as a Fixed Deposit in a scheduled commercial bank. Obtain a No Lien Certificate from the bank, confirming the funds are unencumbered and reserved as per RBI norms.

Step 4: Prepare and Submit the Detailed Project Report (DPR)

Create a robust Detailed Project Report covering your business plan, financial projections, risk management policies, organisational structure, and promoter background.

Step 5: Complete RBI Formalities and Gather Certified Documents

Collect all required documents, including:

  • Certificate of Incorporation
  • MOA & AOA
  • PAN & TAN
  • No Lien Certificate
  • Board resolutions
  • Audited financials (if available)

Step 6: Submit Online Application via RBI's Portal

Access the portal and complete the online NBFC-MFI application. Upload all necessary documents and ensure there are no errors or omissions in the form.

Step 7: Submit a Physical Application to the RBI Regional Office

After the online submission, send a hard copy of your application, including all enclosures and supporting documents, to the Regional Office of the RBI under whose jurisdiction your company falls.

Conclusion

Registering a Micro Finance Company enables you to reach underserved communities while operating within a legal and trusted framework.

Each model has its own advantages. NBFCs are ideal for those looking to operate commercially, access capital markets, and build a for-profit lending institution with high compliance standards. On the other hand, Section 8 Companies are best suited for nonprofit or social enterprise models focused on financial literacy, community development, or charitable micro-lending.

Frequently Asked Questions

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Frequently Asked Questions

How Do I Start a Microfinance Company?

Each model has its own advantages. NBFCs are ideal for those looking to operate commercially, access capital markets, and build a for-profit lending institution with high compliance standards. On the other hand, Section 8 Companies are best suited for nonprofit or social enterprise models focused on financial literacy, community development, or charitable micro-lending.

  • As an NBFC-MFI (Non-Banking Financial Company - Micro Finance Institution)This is a for-profit model regulated by the RBI, which is ideal if you plan to scale lending operations commercially.
  • As a Section 8 Company (Non-Profit Model)This structure is more suitable for social enterprises or charitable organisations offering microcredit without profit motives.

Key steps:

  1. Incorporate a company (Private/Public Ltd. or Section 8).
  2. Raise the required capital (₹5 crore for NBFC-MFI or as applicable).
  3. Deposit capital and get a No Lien certificate from a bank.
  4. Submit a Detailed Project Report (DPR).
  5. Apply to the RBI for a license (NBFC route) or to the MCA for Section 8.
  6. Await approval and begin operations.

How Do I Get a Microfinance License?

If you're forming an NBFC-MFI, the license must be obtained from the Reserve Bank of India (RBI).

Steps to get the license:

  1. Incorporate a company under the Companies Act
  2. Raise and deposit ₹5 crore as Net Owned Funds
  3. Obtain a No Lien certificate for the FD from the bank
  4. Prepare a Detailed Project Report (DPR) and supporting documents
  5. Apply online via the RBI's portal
  6. Submit physical documents to the RBI Regional Office

For Section 8 Companies, you need to apply to the Ministry of Corporate Affairs (MCA) for a license using Form INC-12.

How Much Capital is Required to Start a Micro Finance Company?

  • If you are starting as an NBFC-MFI, the minimum capital (Net Owned Funds) required is ₹5 crore for most parts of India.
  • For a Section 8 Company, there is no minimum capital requirement. However, the capital should be sufficient to support your operations and fulfil the objectives laid out in your application.

How Do I Register a Micro Company?

If by “micro company” you mean a Microfinance Company, you can register in two ways:

  1. As a Private or Public Limited Company (for NBFC route)
  2. As a Section 8 Company (for nonprofit)

Once your company is incorporated, follow the appropriate process (RBI or MCA) to apply for microfinance permissions.

Nipun Jain

Nipun Jain is a seasoned startup leader with 13+ years of experience across zero-to-one journeys, leading enterprise sales, partnerships, and strategy at high-growth startups. He currently heads Razorpay Rize, where he's building India's most loved startup enablement program and launched Rize Incorporation to simplify company registration for founders.

Previously, he founded Natty Niños and scaled it before exiting in 2021, then led enterprise growth at Pickrr Technologies, contributing to its $200M acquisition by Shiprocket. A builder at heart, Nipun loves numbers, stories and simplifying complex processes.

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