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Nidhi Company Registration is a procedure through which the incorporation of type of NBFC called Nidhi can be made possible. Another name of this NBFC is the Mutual Benefit Finance Company. Furthermore, this incorporation takes place under the provisions of Companies Act, 2013.
The business of Nidhi Company is concerned with the acceptance of deposits and lending of money. As compared to the registration processes of other NBFCs, this registration process is an easy one. In respect of taxation and annual compliances, Nidhi companies enjoy the benefit of specific exemptions. Nidhi Company incorporation will invigorate the feeling of savings as well as smart spending in the mind of its members.
Widely known as Nidhi Bank, Nidhi companies endeavours to cultivate the values of thrift amongst their members. Rules related to Nidhi Company suggest that it can proceed further for the transactions within restricted boundaries of work and only with its registered members.
Moreover, it's not wrong to say that these companies acquire from their members and confer to their members. Nidhi company activities come under the ambit of RBI. In this category of NBFC, Directors are free from the shackles of eligibility norms of least qualification. At the end of the name of all the Nidhi Companies, Nidhi Ltd. must be there at any cost.
Nidhi registration is very detailed procedure, which requires keen knowledge, procedure and team of professionals. Each type of Nidhi Company has its tailored requirements be it government or promoter’s. We at YourLegalExpert.in have a full-fledged, dedicated team of professionals. You are required to fill the form and our expert will reach out to you, to know the exact requirement and gather information. Then our experts at YOURLEGALEXPERT.IN will be at your disposal for assisting you with guidance concerning Nidhi Registration and its compliance for the smooth functioning of your financial business in India. Our professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process. We shall guide you with Do’s and Don’t’s as well.
Many people in our country want to deal with financial services, but due to the scarcity of capital, they are unable to take further steps. The principal objective of forming a Nidhi Company is to nurture the belt-tightening habits amongst its members so that by prioritizing saving, they won't face any difficulty in meeting their financial requirements that keep on arising from time to time. Apart from this, many unexplored benefits of establishing a Nidhi Company exists.
Easy Formation Without Any Complexity Involved
The registration process of Nidhi Company relishes freedom from all kinds of complexities. As less documentation process prevails from the beginning to end in Nidhi Company Registration, initiating a Nidhi Company is an easy task. In addition to this, the registration process gets completed within one or two weeks.
In accordance with the Companies Act, 2013, directors and shareholders are having limited liability. In the game of business, either there will be profit or the company have to incur losses. While performing the business activities, if the company suffers from any loss or even goes through any financial trauma, creditors, banks, and the government have no power to seize the personal assets of any of the shareholders or even the directors.
High Certainty Value
In a developing nation like India, from 9 years old child to 60 years older adult is interested in saving their money. Here, the habit of saving is going in the same line with the central goal of Nidhi Company. Inculcating the habit of saving amongst its members is one of the primary purposes of Nidhi Companies. As it is a going concern establishment and is full of certainty, members would keep on sticking to the good habit of saving.
Being governed under the Nidhi Rules, 2014, Nidhi Companies have to follow fewer guidelines imposed by RBI. The monitoring and regulating hat remain in the hand of the Central Government. It empowers them to control the operating part along with all their activities. Even though Nidhi Company falls under the category of NBFC, it rarely follows RBI Regulations. Form your Nidhi Company in India as RBI is not going to create any trouble in your path. Go ahead without putting yourself in any rush-n-hush.
Separate Legal Entity
Being a separate legal entity from its shareholders, directors as well as promoters, Nidhi Company can own property and incur debts on its name. It has got the power to sue anybody or be sued by others. If there will be a requirement for the fund in the company, the company cannot ask its members for any contribution.
Easy Availability of Funds
Nidhi Company is the most secure and most accessible way of accepting deposits from the end of the general public. Only the requirement is that they should be the registered members.
Death or departure of any member is not going to affect a Nidhi Company as it has perpetual existence. Perpetual succession allows the Nidhi Company to continue till the time it gets dissolved legally.
Meeting The Requirements of Lower and Middle Class
Nidhi Companies play a crucial role in fulfilling the demands of people belonging to the category of lower and middle-income society by extending financial support to them without any further lengthy documentation involved.
Ease Of Management
In Nidhi Company, bringing changes is not a matter of worry and concern, unlike other NBFCs.
Even though the Nidhi Company Registration process is quite simple to follow, help from the professionals may make even the complex of things straightforward. The completion and filing of complex forms become comfortable with the help and advice of professionals.
Also, it would be a time-saving exercise with their support. Sometimes, the government portal and a bit difficult language make things challenging. After gaining expertise in Nidhi Company Registration, we have successfully started many Nidhi Companies under our roof. The Nidhi Company incorporation procedure involves many items submission like
The first requirement is to select and suggest at least two names to proceed further in the Nidhi Company Registration Process. The names should be given preference wise. If the first name is not desirable, then registrar will accept second name. If both the names are un-desirable then registrar will give second and final chance to apply for two fresh names.
Directors And Members
At least there should be three directors along with the seven members. An individual can be the director, as well as a member. Both can be the same.
The Need for Digital Signature
Nidhi Company Registration Process gathers speed when there is a fulfilment of the primary requirement i.e., digital signature. Also, it's mandatory to get all the submitted forms self-attested.
Articles Of Association and Memorandum of Association (Final Incorporation)
After finishing up the process of name approval, Nidhi Company Registration Application gets submitted along with the Spice Forms, Articles of Association and Memorandum of Association and other forms and declarations.
COI, PAN and TAN & Opening of Your Bank Account
You are likely to receive your Certificate of Incorporation along with PAN and TAN within a week. After that you can submit the respective documents with your choice of Bank and open a Bank Account.
Nidhi Companies are not entitled to perform the following transactions:
In this form, A Nidhi Company has to submit the list of Nidhi Company members within the time limit of 90 days at the closure of the financial year.
In this form, A Nidhi Company can make a request to MCA for an extension, in case it has been unable to add 200 members in its first financial year.
Besides the forms mentioned above, A Nidhi Company is also supposed to file a half-yearly return in NDH 3 Form.
For filing an application for a declaration as Nidhi Company and updating of status. For New Nidhi Company – Within 120 days after the expiry of 1 year from the date of its incorporation For existing Nidhi Company – Within 1 year from its date of incorporation OR within 6 months from the date of commencement of Nidhi Rules 2019, whichever is later
Annual Returns With ROC
It's a compulsory thing that a Nidhi Company should file an annual return with the Ministry of Corporate Affairs through Form MGT-7.
Profit, Loss and Balance Sheet
In Form AOC-4, A Nidhi Company has to submit financial statements and other related documents.
Income Tax Returns
Nidhi Company must file annual returns in the following financial year by September 30, like the rest of the companies.
While choosing a name, you need to consider these points
Must Display Uniqueness
The name should be only one of its kinds. It must carry a distinctive identity when compared to existing companies.
Simple And Crisp
It should be easy to keep in mind for a long time, and also it should be easily understandable by one and all.
Must Meet Its Purpose
It must meet its purpose of conveying the brand objective and information about the brand to the people through its name.
The Suffix Portion Is Crucial
Mutual benefit Nidhi Limited or Nidhi Limited' should come as the suffix.
Must Follow The Laws
There are some provisions related to name in Emblems and Names (Prevention of Improper use) Act, 1950. Without violating laws, it should follow these guidelines.
Shouldn't Be Offending Anyone
It should not be offending any community of people, shouldn't be hurting the sentiments of any religion, and also shouldn't be undesirable to any culture.
Ministry of Corporate Affairs is the responsible authority for regulating Nidhi Company and is also accountable for Nidhi Company Registration. Provisions of Nidhi Rules, 2014, are being followed for doing all the activities.
To become a member of Nidhi Company, an individual should meet the following requirements
No, Issuance of the following securities is not in the hand of Nidhi Company
No, Nidhi Company cannot perform its operations outside the boundaries of the state in which the registration has taken place.
No, Nidhi Companies cannot advertise their activities.
One residential address is enough for running a Nidhi Company. There is no such requirement as office space.
No, Nidhi Company cannot issue unsecured loans. However, it can issue secured loans to its members.
It takes almost 30-40 days for the completion of the registration process.
As YourLegalExpert.in is providing PAN-India services, we are ready to help you in getting your Nidhi registered wherever you want all over India. Furthermore, Nidhi Company Registration is an online process in India.
At YourLegalExpert.in, we have got professional experts like lawyers, Chartered Accountants, Company Secretaries, and other experts from different fields that are carrying their years of experience in the area of laws as well as the current industry. We give you faith that solving your queries will be the utmost priority. Besides this, we will be executing all the orders with full attention and devotion.
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