Nidhi companies are regulated under section 406 of Companies Act, 2013. Nidhi companies are basically the part of an on-banking financial sector whose main motive is to promote the saving...
“Nidhi” is a Hindi word, which implies fund or finance. Nidhi is an organization which has the sole purpose of building up the habit of thrift and reserving funds among its individuals & furthermore getting deposits and loaning to their members for their benefit. Nidhi Company is a Non-Banking Financial Company which don’t require RBI license. The borrowing and lending of cash are confined to its individuals just for their advantage. It has been perceived under the area 406 of Companies Act 2013 & Nidhi Companies Rules, 2014. The fundamental thought of Nidhi Company Registration is the “Rule of Mutuality” as a result of which it is also known as Mutual Benefits Company. In this article, we will discuss the procedure for Nidhi company registration.
What are the Requirements for Registering Nidhi Company?
A Nidhi Company might be used as a Public Limited Company and it requires 7 shareholders and 3 directors which are appointed by the 7 shareholders. The least paid up value share capital ought to be Rs.5 lakh. Nidhi Company neither issue preferences hares nor pursue any other objectives. Each company after finishing Nidhi Company Registration must have “Nidhi Limited” associated with them in their name.
After the incorporation of the company, at least 200 number of shareholders will be required within a year and the minimum owned fund must be about Rs 10 lakh. If any company who is unable to meet such conditions then within 30 days from the end of the first financial year, you must apply for Regional Director for the extension of the time period.
What is the Procedure for Nidhi Company Registration?
- Fill the form- every individual must fill the details that are asked and submit the document.
- Get DSC & DIN- to proceed further you will require DSC & DIN, we will provide you with this, and you also need to give your approval. It will take about 3 working days.
- Verification- in this step the details you have provided or submitted in the form will be verified. It will take around 2 working days.
- Document Submission- on behalf of you we will create your document & file them with ROC. This process will take to complete about 6 working days.
Now once your company is registered we will provide all the documents & DSCs to you. Have a look at the documents that will be required for the Nidhi Company Registration:-
- Copy of Aadhaar Card/ Voter ID of directors
- Copy of Pan Card of directors,
- Passport Size Photographs of directors,
- Electricity or Water bill of your business place to confirm the address,
- If you are on rent then rent agreement copy will be required,
- If it is your owned property then a copy of property papers will be required,
- Landlord NOC will be provided,
What are the Concerns & Benefits Related to Nidhi Company Registration?
Nidhi Company is exceptionally reliant on the trustworthiness, honesty, and loyalty of its members. It takes into account just the necessities of little and medium-income groups. Opting Nidhi Company Registration is typically overseen by the beginners, rather than those of expert directors, as they can’t be contracted because of lack of funds. Most of the individuals might be hesitant to deposit funds in light of the fact that Nidhi Companies don’t require a permit from the RBI. But there are many advantages if you are planning to apply for Nidhi Company Registration. It doesn’t require minimum share capital and transfer of ownership is very easy. It offers tax benefits and no stamp duty is required. It has a very clear end goal to provide donations and loans to the peoples, thus it is very helpful to the peoples who belong to the lower or middle class. It provides relaxation in compliances and its exemptions & privileges come under Companies Act 2013. It assures for secured investments and provides low rates of interest.