Microfinance companies can easily be classified as illegal fund-raising and violate the law. The business scope of the company is defined by whether there are illegal fund-raising, absorbing or disguised public deposits, conducting business in violation of the national interest rate policy, and using illegal means to collect loans.

First, judging whether it is illegal fund-raising depends on whether illegal fund-raising is adopted by fraud. In any of the following circumstances, it can be considered as "for the purpose of illegal possession":

(1) The raised funds are not used for production and business activities, or are obviously out of proportion to the scale of the raised funds, so that the raised funds cannot be returned;

(two) wantonly squandering fund-raising, so that the fund-raising can not be returned;

(3) fleeing with funds;

(4) The funds raised are used for illegal and criminal activities;

(5) Evading, transferring funds, concealing property or evading the return of funds;

(six) concealing or destroying accounts, or engaging in fake bankruptcy or bankruptcy to escape the withdrawal of funds;

(seven) refused to account for the whereabouts of funds, to escape the return of funds;

(eight) other circumstances that can be identified as the purpose of illegal possession.

Second, the legal basis:

Article 4 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases of Illegal Fund-raising, who commits the acts listed in Article 2 of this Interpretation by fraudulent means for the purpose of illegal possession, shall be convicted and punished for the crime of fund-raising fraud in accordance with the provisions of Article 192 of the Criminal Law. In any of the following circumstances, it can be considered as "for the purpose of illegal possession":

(1) The raised funds are not used for production and business activities, or are obviously out of proportion to the scale of the raised funds, so that the raised funds cannot be returned;

(two) wantonly squandering fund-raising, so that the fund-raising can not be returned;

(3) fleeing with funds;

(4) The funds raised are used for illegal and criminal activities;

(5) Evading, transferring funds, concealing property or evading the return of funds;

(six) concealing or destroying accounts, or engaging in fake bankruptcy or bankruptcy to escape the withdrawal of funds;

(seven) refused to account for the whereabouts of funds, to escape the return of funds;

(eight) other circumstances that can be identified as the purpose of illegal possession.

(9) Article 192 of the Criminal Law refers to the crime of fund-raising fraud, in which illegal fund-raising is carried out by fraudulent means for the purpose of illegal possession. If the amount is relatively large, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property.