A microfinance company is a financial institution that provides small loans and financial services to individuals or businesses who do not have access to traditional banking services. These loans often target low-income people or small businesses in developing or underserved areas.

Capital requirements vary widely depending on the country and regulatory framework. Some countries may require as little as $50,000, while others may require several million dollars, especially for those aiming to provide a wider range of services. Check with local authorities for specific capital thresholds.

Yes, most countries require microfinance companies to obtain a specific license or authorization to operate legally. This is typically issued by a central bank, financial services authority, or another regulatory body.

Depending on the jurisdiction and regulatory framework, microfinance institutions (MFIs) may be allowed to offer savings products in addition to loans. In some countries, offering savings might require a separate license or approval.

Microfinance companies may need to carry insurance such as professional liability or liquidity insurance to protect against risks associated with lending activities. The exact requirements depend on the jurisdiction.