Step 2: Appoint three directors and determine seven stakeholders, a total 10 Individual
Step 3: Getting Name Search and DSC application
Step 4: Filling for incorporation. Approval of Incorporation documents
Step 5: Congrats. Nidhi Company is ready to kick-start.
- Self-attested copy of PAN Card for all directors
- Self-attested copy of driving license/Voter ID card/ Adhaar card/Passport.
- Self attested copy of Bank statement/Telephone Bill/Mobile Bill/Electricity Bill.
- Passport size photograph
- Low-Interest rate.
- Encouragement of savings.
- Easy loans
- 20-35 working days
- Quick and correct Nidhi Company Registration
- Lowest fees in the industry
- Best support
What is a Nidhi Company?
A Nidhi company comes under NBFC (non-banking finance company), recognized under 406 of companies Act, 2013, governed by central Govt. The man purpose of such a company is to smooth the path of lending money among the core members of the company.
Examples of Nidhi Company Include permanent mutual funds, mutual benefit funds, mutual benefit company, and benefit funds. The central idea behind making a Nidhi company is to receive funds/deposits from members or to lend funds to members, for the mutual benefit of both stakeholders-lenders and depositor.
All-Transactions i.e. lending and borrowing must confirm with rules laid down in chapter XXIV of company Rules, 2014.
Advantages of Nidhi Company
Low rate of interest
Member of Nidhi can borrow money at a lesser rate compared to banks, with least documentation and conventions.
Since the benefit is associated with members a Nidhi company encourage propensity towards saving in middle and lower middle class.
The Procedure is simplified because both lenders and borrowers know each other. Also, It is an easy source of loan against collateral security. The involvement of members of Nidhi Company no scope of external involvement.
Control of RBI and MCA
Categorized under a distinctive class of NBFC, Nidhi falls on the purview of RBI directive governing investment and financial activity. RBI is continuously monitoring directive applicable to Nidhi. Deposits from six to sixty months are possible in Nidhi Company.
Number of Members
A Nidhi Company must have 200 members within a year of incorporation, failed to do so, it needs to apply for permission to extend the time limit to associate the requisite number of members. Three members must be the directors, and it also has seven stockholders from inception.
A Nidhi Company must have an equity share capital of minimum Rs. 5 lakh for formation This entire amount must be paid-up. Additionally, 10% of the total deposit collected from members must be in a fixed deposit in a nationalized bank.
Let It Clear The Confusion
Can I open multiple branches of My Nidhi Company?
You can open up to three branches in one district. For more than three branches in one district or opening new branches in other districts you have to intimate registrar of company 30 days prior to the opening of the branch.
If Nidhi Company is not able to join requisite number (200) of members in one year? Will I have to dissolve it?
If membership requisite quantity 200 is not attained in one year, we can apply for an extension with concerned authority.
Does NIdhi Company can accept the deposits from non-members as well?
No, only members can deposit, lend, and borrow.
Who can become a member of Nidhi Company?
As per company act 2013, any person can become a member of Nidhi Company, and can borrow, lend or deposit money except corporation and company.
What is the maximum amount one can deposit in Nidhi Company?
Not more than 20 times its net owned assets, mentioned in last audited statement.