start a private limited company

All about Nidhi Company Registration

Nidhi Company is most popular form for giving loan to its member and accepts deposits from its members. Its main objective is to lend and borrow money amongst its members and to cultivate the habit of savings amongst its members. Nidhi Company is governed by the Provision of Companies Act, 2013 and Nidhi rules 2014.

It providing loan and accepting Deposits you have to register. Nidhi Company is referred to as one of the kinds of NBFC. It is also called mutual benefit company. But no RBI approval is required to incorporate a Nidhi company as it is the exempted category Nidhi Company will always be public limited company and its name should end with ‘Nidhi Limited’, Presently Nidhi Company is become very popular for lending business.

How to Register a Nidhi Company?
• Application for Approval of name.
• Preparations and drafting of Incorporation documents.
• Application for incorporation of Nidhi company with ROC
• Signing of Incorporation documents.
• Obtaining DSC for all member and director.

Nidhi Company Registration:
1) Instant access to Nidhi software and compliances.
2) Lowes t cost across India.
3) It takes 10 or 15 days for Nidhi Company Registration.

Documents Required for Nidhi Company Registration: • PAN
• Address Proof
• Registered Office
• Id Proof
• Passport Photo
• Latest Bank Passbook/Statement of Electricity/Broadband bill

Benefits of Nidhi Company:
Simple Formation of Nidhi Company:
• The formation Of Nidhi Company is very easy process.
• It requires only 7 members out of which 3 members would be the directors.
• Nidhi Company does not require obtaining a license from RBI.
• The documents of required registration are very less.
• It takes hardly 10 or 15 days to get registered.

Limited RBI registration:
• There would be least intervention of RBI.
• Nidhi Companies are exempted from main provisions otherwise applicable to be an NBFC in India.
• These Companies follow Nidhi Rules 2014 issued by the center in respect of activity and working of Company.

Benefits of member:
• It works with the objective of increasing saving of its member.
• Easy to make donations and get loans from the Company.
• Loan given at Lower rate.
• The risk of non-payment is less than the other finance business.

Restrictions on Nidhi Company:
• The period of repayment of the loan should not exceed one year.
• Only secured loans can be given i.e. insecurity of any gold, silver, or any other valuable jewel.
• Nidhi Company cannot do any chit fund activity, hire purchase, and lease financial activities. Nidhi Company cannot lend or borrow money from any person other than its members.
• It’s not allowed for Nidhi Company to issue preference shares, debentures, or any debt instruments.
• Minimum paid-up capital requirement is Rs 5,00,000

For more information Click here