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Nidhi Company Incorporation

Set up Your own Nidhi Company to start thrift and saving among members Starting At ₹ 5999/- (Onwards) + GST

It just Takes 10 to 15 business days (subject to Government processing time). No Hidden Cost

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Advantages of Nidhi Company

  • Easy Incorporation in comparison to other forms of NBFC’s.
  • No RBI Compliance only Nidhi Rules, 2014 and other provisions of The Companies Act, 2013 is required to be complied
  • Low capital requirement in comparison of other NBFC’s the capital requirement is just 500000.
  • Closed Management No External Involvement in the Company’s Management;
  • Easy lending and borrowing between the members
  • Substitute of a Co-operative Society and Micro Finance Business with additional benefits
  • Registration under Ministry of Corporate Affairs hence many privileges and exemptions are provided under the provisions of the Companies Act, 2013 and they also enjoy status of a separate legal entity.
  • Access to public funds only requirement is that any lending or borrowing should be done with members only.
  • Secured investment with lower Rate of Interest hence Lower level of risk Financial help to Common group people by Fulfilling the financial requirements of the lower and middle-income groups though their easy lending and borrowing mechanism.

Documents Required

  • Digital Signatures of all Directors and Subscribers
  • DIN No. for all Directors (If already allotted, otherwise it can be allotted later on)
  • Identity Proofs for all the Directors and Subscribers (PAN Card)
  • Address Proof of all the Directors and Subscribers (e.g. Aadhaar, Bank Statement)
  • Photograph of all the Directors and Subscribers
  • Any Utility Bill as Address Proof of Registered office of the company
  • If Registered Office is Rented, No Objection Certificate/ Rent Deed from the owner of the Property
  • Other documents as prepared by the Professional

Characteristics of Nidhi Company

Some of the important points to be kept in mind regarding Nidhi Company:

  1. A Nidhi Company can only be incorporated under the Act as a public company and shall have a minimum paid up equity share capital of five lakh rupees.
  2. Minimum of seven members is required to start a Nidhi Company out of which three members must be the directors of the company.
  3. Every Company incorporated as a “Nidhi” shall have the last words ‘Nidhi Limited’ as part of its name.
  4. A Nidhi cannot admit a body corporate or trust as a member.
  5. A minor cannot be admitted as a member of Nidhi Company
  6. All the Director shall be a member of Nidhi Company
  7. Nidhi Company can’t deal with chit funds, hire-purchase finance, leasing finance, insurance or securities business.
  8. It is strictly prohibited from accepting deposits from or lending funds to, any other person except members.
  9. An approval is required from MCA for formation of a Nidhi company

Post Incorporation Requirement:

Once incorporated, a Nidhi company is required to fulfill the following requirements within 1 year of its registrations:

  • Nidhi Company should have minimum 200 members within one year from commencement
  • The net owned funds should be 10 lakh rupees or more. Net owned funds = Equity share capital + free reserves (-) accumulated losses (-) intangible assets
  • Unencumbered term deposits must be 10% or higher of the outstanding deposits
  • The ratio of net owned funds to deposits shouldn’t be more than 1:20

Extension of another financial year can be availed upon submission of NDH-2 to the Regional Director within 30 days from the end of the first financial year.

If even after the second financial year, it doesn’t fulfill the requirements, it can’t accept deposits till it complies with the provisions, and also penalty will be imposed.

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