Nidhi Company

Portfolio name

  • What is a Nidhi Company?

    A Nidhi companybelongs to the category of non-banking finance firms.Recognized under Section 406 of the Companies Act, 2013, it is governed by the centralgovernment. The basic business of such a company is to facilitate lending money between the core members of the company.Examples of a Nidhi Company are permanent funds, mutual benefit funds, a mutual benefit company and benefit funds.The core idea behind creating a Nidhi Company is to receive funds (deposits) from members or lend to them, for the mutual benefit of both parties. All lending and borrowing must comply with rules laid downinChapter XXIV of Company Rules, 2014.

  • Documents Required for Nidhi Company Registration


    IDENTITY AND ADDRESS PROOF

    Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.


    REGISTERED OFFICE PROOF


    All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.


     Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs).


      Scanned copy of Voter’s ID/Passport/Driver’s License


      Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Scanned passport-sized photograph Specimen signature (blank document with signature [directors only])


  • Basics of a Nidhi Company

    Regulated by MCA & RBI


    The financial dealings and all the registration processes of a Nidhi company are regulated by the Ministry of Corporate Affairs. The deposit acceptance activities conducted by the Nidhi Company also come under the scanner of Reserve Bank of India and the latter has the rights to look into the financial dealings. Nidhi companies are only allowed deposits which are over six months and less than five years old.


    Number of Members >


    A Nidhi Company must accumulate 200 members within a year of its formation.If it fails to do so, it needs to apply for permission to extend the time limit to acquire more members. Three of its members will be appointed as directors and there must be seven stockholders on inception.


    Equity Capital


    A Nidhi Company must have an equity share capital of Rs. 5 lakh on inception. This entire amount must be paid-up. Moreover, 10% of the total deposit collected from members must be in a fixed deposit in a nationalised bank.


  • Advantages of Nidhi Company

    Cheaper to Borrow


    As a member, one can borrow money at a minimum rate, relative to the rate at which banks lend money.This can be a major advantage in times of need, as different individuals in the mutual benefit society are likely to need funds at different points in time.


    Encourages Savings>


    A Nidhi company encourages all its members to save money and encourages a thrifty lifestyle. A Nidhi company, after all, is amutual benefit society wherein memberscan lend or borrow money and accept financial aid amongst them..


    Fewer Complications


    Borrowing and lending to known persons, where the procedure is fixed, is much less complicated than dealing with banks or in an informal setting. A Nidhi Company enables its members to unlock the potential of their money and gain from lower interest rates when they require money themselves..


  • Procedure for Nidhi Company Registration

    1 WORKING DAY


    We will help you decide what registration you need, whether service tax, sales tax, import/export code, professional tax or Shops and Establishments Act registration. We will also inform you of the documents you need to get started.


    5 WORKING DAYS


    We will connect you to a verified vendor who will file your application and keep you up-to-date on its status. Our vendors are well-experienced in handling local registrations.


    15 WORKING DAYS


    We will offer our complete support until you receive the registration you've selected. This could take up to 15 days in some cases, but as few as 5 days in others. This depends on the workload of authorities and other externalities.


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