Microfinance companies are limited liability companies or joint stock limited companies established by natural persons, corporate legal persons and other social organizations that do not absorb public deposits and operate microfinance business. In other words, the business of microfinance companies is "only lending without saving".

Want to set up a small loan company must have six conditions:

(1) It has articles of association that conform to the Company Law of People's Republic of China (PRC).

(2) If the organization form of the microfinance company is a limited liability company, its registered capital shall not be less than 20 million yuan; If the organization is a joint stock limited company, its registered capital shall not be less than 30 million yuan. The maximum registered capital of a small loan company shall not exceed 200 million yuan.

(3) Having qualified directors, senior managers and staff with corresponding professional knowledge and experience.

(4) Having a sound organizational structure, business operation rules and risk control system.

(5) Having a business place, safety precautions and other necessary facilities that meet the requirements.

(6) Other prudential conditions.