“Nidhi” is a Hindi word, which means finance or fund. Nidhi Company Registration is done with an intention to cultivate savings among members and to provide finance among members only. It is allowed to take loans from members and can lend to only members. Hence, it can not accept deposits or lend from/to non-members.
TeamIndia.co.in is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Incorporating a Nidhi Company in India is easy, seamless, cheapest and quickest with TeamIndia.com! Apart from a Nidhi Company, TeamIndia.co.in also helps entrepreneurs with Private Limited Company Registration, Public Limited Company Registration, LLP Registration, HUF, One Person Company and Proprietorship Firm Registration easily. You may get in touch with our compliance manager on phone number or email firstname.lastname@example.org for free consultation.
Nidhi Company Features
1. Separate Legal Entity
A Nidhi Company enjoys the benefit of Separate Legal Identity in the eyes of law which clearly states that assets and liabilities of the business are not the assets and liabilities of the Directors.
2. Cultivates Savings
A Nidhi Co. encourages its members to save money and encourages a thrifty lifestyle. It is a company wherein members can lend or borrow money and accept financial loans amongst themselves.
Interest in Nidhi Company can be easily transferred by transferring its shares. Its board of management is easily transferable as such.This is effected through filing of forms with ROC.
4. Cheap Borrowings
Members, when in need, can borrow from the company at bank rates. This can really come handy in case of need and rates are comparatively very cheap in comparison to other sources of finance.
5. Mutual Benefits
A Nidhi Company operates on principles of mutual benefits. No one member or a group of members get benefited. Nidhi Company allows right to every member to access credit facilities when in need.
6. Builds Credibility
All the information relating to the company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility.
Process of Registration
1. Documentation – A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
2. Name Approval – Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of name for your Nidhi Company business. You may suggest up to two names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Nidhi Company in Part A of SPICe Plus form.
3. Registration – We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.
1. Photograph of all the Directors and shareholders
2. PAN Card of all the Directors and shareholders
3. Self-Attested ID Proof of all the Directors (Driving License/Passport/Voter ID)
4. Electricity Bill or any other utility bill for the address proof of the Registered Office
5. No Objection Letter (NOC) from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
Frequently Asked Questions
A Nidhi company is registered as a Public Limited Company. Hence, the requirements for incorporation of a Nidhi company covered a minimum of three Directors and Seven Shareholders. However, the MOA of a Nidhi company must state that the primary objective of the proposed company is to nurture and promote a habit of thriftiness and savings among its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.
Yes, you can incorporate your Nidhi company with 7 members at least. However, within 1 year, you must have at least 200 members.
No, a Nidhi company can not borrow from an outsider. It can not similarly lend to an outsider who is a non-member.
A Nidhi can accept deposits not exceeding 20 times of its net owned assets as mentioned in the last audited statements.
With TeamIndia.com, Nidhi company incorporation usually takes 30 days. This is subject to government approvals time and completeness of your documentation.
TeamIndia.co.in provides Nidhi Company Registration all across India.
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