Nidhi Company
Nidhi Company is a public limited company registered under section 406 of Companies Act, 2013, The Nidhi Company is incorporated by its members to develop the habit of saving and distribute the funds among the members and also for the purpose of getting deposits and lending to its members for their mutual benefit.
Now get your Nidhi Company registration starting from Just Rs. 21000/-
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About Nidhi Company
Nidhi Company is a public limited company registered under section 406 of Companies Act, 2013, The Nidhi Company is incorporated by its members to develop the habit of saving and distribute the funds among the members and also for the purpose of getting deposits and lending to its members for their mutual benefit.
The fund company acts like a bank, it opens a savings account of its members, and a loan is also given when needed by the members. It means Nidhi Company is a small bank for its members.
Changes in membership or death of members do not affect the existence of the Nidhi Company.
Now get your Nidhi Company registration starting from Just Rs. 21000/-
Minimum Requirement to incorporate a Nidhi Company
- Minimum 3 number of directors are required
- Minimum 7 members are required to incorporate a Nidhi Company
- Minimum required paid up share capital for Nidhi Company is INR. 5 Lakh
- Limits the liabilities of its partners.
- A photo, ID, address proof is required of Directors and Members
- Any authorized address proof of registered office is required for Company.
- Name and Address of the company is required
- The minimum age of members is must be 18 years.
Benefits of a Nidhi Company
- To start a Nidhi Company the minimum required paid up share capital i.e. INR. 5 Lakh only it is on very lower side compare to NBFC.
- The RBI license is doesn’t required.
- Nidhi Company is the only loan company in India that can be started without RBI approval / license.
- RBI compliances are not applicable on Nidhi Company
- Nidhi Company have better reliability compare to Society , Trust etc.
- Nidhi Company provides better option of saving & returns to it’s member.
- Reasonable interest charged by Nidhi Company from it’s members and the benefit earned by the Nidhi Company is distribute among the members.
- Features of micro banking for its members
- Meets the requirements of lower and middle class income groups.
- The Nidhi Company can take a legal action against the member if he fails to repay the loan amount.
Compliances required for a Nidhi Company
The paid up share capital of the Nidhi Company must be INR 10 Lakh within a year after registration.
After submitting your documents we will provide you with DSC and DIN.b) Minimum 200 members must be achieved within 12 months of incorporation.
The information is required to be submit to ROC after achieving the 10 Lakh paid up share capital and 200 members criteria as per norms.
Form NDH1: It is required to be file for list of members, within 90 days after end of the financial year
Form NDH2: If the criteria of 200 members not fulfill within prescribe time period then request for extension of time period to be submit in NDH-2 form.
Other ROC compliances Annual Returns in prescribe forms are also required to be filed in prescribe time period.
Income Tax Return, Audit etc also to be file.
POINTS RELATED TO NIDHI COMPANY
- RBI also issue the guidelines and directives for the Nidhi Companies related to financial activities and investments by companies including the NBFCs. Because The Nidhi Companies are engaged in the business of accepting deposits and lending money by its members only, certain relxation are also provided to these companies, by the RBI.
- The interest charged by the Nidhi Company is must be reasonable i.e. not more than 20% per annum, because the Nidhi Company is worked for members mutual benefits and lending for personal expenses of the members.
- The lending of Nidhi Company is given against security.
- As per rule-6 of companies Rule 2014
- Nidhi company can not involved in transactions belongs to hire purchases, leasing finance, chit fund, insurance, acquisition of securities.
- Restriction to accept deposit and lending money except it’s members
- Reserve Bank of India (RBI) doesn’t regulate to Nidhi Company hence not required any kind of RBI license to start the money lending business.
- Nidhi Company cannot operate a business of Vehicle finance, micro finance, lease etc.
- Nidhi Company cannot operate a business of Vehicle finance, micro finance, lease etc.
- With in 12 months of incorporation Nidhi Company must required to register atleast 200 members and intimate to ROC in prescribe form.
- The maximum chargeable interest rate on landed money is 20% per annum on reducing basis.
- The maximum rate of interest to be paid on members deposit is 2% above the nationalized bank interest rates.
- The mode of accepting deposits from members may be in form of FD, RD and saving account.
- The maximum interest payable on members FD, RD is a rate of interest is allowable by RBI to NBFCs on their deposits.
The operational area of a Nidhi Company is as below
For first 3 Years | Within the district |
|---|---|
After Completion of 3 years | 3 other offices can be open within the same district only |
For operation out of district | Prior approval from Regulator Director is required |
- The Nidhi Company can give the loan to it’s members against sercurity and the security may be FD, Gold, Property, Government Securities, Life Insurance bond etc.
- ROC Compliances, Income tax filing, Audit etc. are mandatory compliances for Nidhi Company.
PROCESS AND TIME REQUIRED FOR INCORPORATION OF A NIDHI COMPANY
STEP | TIME REQUIRED |
|---|---|
Step1: Apply of DIN and DSC of first directors of the company | Day-1 after receiving the all documents |
Step2: Getting one name approval out of your proposed three unique names | Day-2 |
Step3: Drafting of MoA & AoA | Day-3 to Day-4 |
Step4: Apply for incorporation of the company | Day-5 |
Step5: Getting Certificate of Incorporation from MCA, PAN, TAN etc. | Generally it will take a time from Day-6 to Day-15 |
Requirement for Nidhi Company
- We have a experienced and qualified team of legal experts like CA, CS, Lawers to complete your work without any delay.
- Each client’s work is done with full dedication.
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- Our aim to provide a affordable business legal services
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