After the establishment of the Nidhi company, you will receive the following documents: The process of setting up the Nidhi company is very simple and straightforward. Compared to other NBFCs, there are very few requirements. Once the name is approved, the details of the company registration must be written in the SPICe+ form. This is a simplified pro forma for the electronic incorporation of a company. The details in the form are as follows: It is ideal for companies that want to set up a permanent fund and a mutual fund or mutual company. Simple registration process: The process of registering a “Nidhi Company” with LegalRaasta is quite simple and transparent. You do not need to purchase a license from RBI. All you have to do is integrate your company into the MCA as a public company. Nidhi`s sole purpose is to promote a culture of savings among its members. Nidhi Company is not required to obtain the license from the Reserve Bank of India (RBI), so it is very easy and convenient to form. It is also known as the Mutual Benefit Finance Company. It is registered as a public company and must include “Nidhi Limited” as the last words of its name.
Only one objective is mentioned in the society`s memorandum of understanding: “to cultivate the habit of saving and saving among its members, to receive deposits from its members and to lend only to their members for their mutual benefit.” Nidhi company registration is a complete digital process and therefore, the requirement for a digital signature certificate is a mandatory criterion. Directors and subscribers to the Company`s memorandum must apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and can be completed within 24 hours. This process includes 3 simple verifications which are document review, video verification and telephone verification. After approval of the above-mentioned documents by the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation are issued by the relevant department. Now, the company is required to open a current bank account with these documents. You can contact us for help opening your current bank account. The main purpose of a Nidhi society is to take deposits and lend money to its registered members. This company must aim to inculcate in its shareholders the habit of saving and saving. LegalRaasta provides Nidhi Company incorporation services throughout India in all cities. We have carried out Nidhi company registration in Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur and other Indian cities.
Get the edge over others with a team of highly skilled professionals at LegalRaasta. And get high-level professional services with total customer satisfaction. We accompany you every step of the way of registering a Nidhi business so you can focus on your business. A minimum of seven members is required to form a Nidhi corporation, three of whom must be the directors of the corporation. It is a company classified NBFC (non-bank financial company) and registered under Section 406 of the Companies Act 2013. The main activity of such a company is to facilitate loans between the main members of the society. In this way, members (or shareholders) are encouraged to save money and invest it in the business. These deposits are then used by the Company on behalf of its members (or shareholders) to provide loans or advances and purchase stocks/bonds/securities/government issues.
It is regulated by the Ministry of Corporate Affairs, while the RBI oversees all of its financial operations. Nidhi company registration is an entirely trade-based process. This is a type of credit company, and for its incorporation, the applicant company must be registered with the MCA. Nidhi`s business structure is best suited for young entrepreneurs who want to enter the world of financial business. Contrary to what you might think, registering a Nidhi business is a simple 3-step process and can be done entirely online. We have outlined it below. The objective of creating a Nidhi society is to promote savings among its members. And to achieve this goal, cultivate the habit of saving among its members.
Nidhi companies can only accept and lend a deposit from members. In other words, the funds contributed to a Nidhi company come only from its members (shareholders) and can only be used by the shareholders of the Nidhi company. The name “Nidhi” in Nidhi Company means “treasure” and comes from Hindi vocabulary. On average, it takes about 14-21 business days to register a Nidhi company in India, subject to verification of documents by the Ministry of Corporate Affairs (MCA). SPICe e-MoA and e-AoA are the linked forms that must be created at the time of the company`s registration application. Yes, a Nidhi business can be profitable, but the only purpose is to borrow money and lend only to its members. Association) and AoA (statutes). These should mention the main purpose of starting a Nidhi business as a charity. The MoA and AoA must be submitted to the ROC (Registrar of Companies) with the subscription statement. No, it cannot grant unsecured loans.
Nidhi companies are strictly forbidden to grant loans, but there can only be guaranteed loans up to a certain amount. Liability is limited: The liability of directors and shareholders of Nidhi Company is limited. In the event that the Corporation incurs losses in the course of its operations and faces financial difficulties, there is a risk that the personal assets of one of the directors or members will not be seized by banks, creditors and the government. Articles of association are defined in Article 2 (56) of the Companies Act 2013. This is the foundation on which the company is built. It defines the constitution, powers and purpose of the company. Under the Companies Act 2013, directors and shareholders are limited. If the Corporation suffers losses or problems, the personal assets of directors and shareholders are safe. Step 3: Register your incorporation within 14-21 business days Section 406 of the Companies Act 2013 defines what a Nidhi company is. This is a type of NBFC that is used for the purpose of borrowing and lending between them. First of all, the general managers of the company Nidhi DIN (Director Identification Number) and DSC (Digital Signature Certificate) must apply. DIN is issued by MCA and DSC is a digital signature used for all e-filing processes.
This step can be skipped for the director who already has DIN and DSC. Finally, administrators must apply for a PAN (Permanent Account Number) and a TAN (Tax Deduction Account Number).