Nidhi Company Registration Online Process and Compliance

Nidhi Company Registration Online Process & Top Consultant Many of us don’t know how many types of companies are there? Until you are into that profession or business, you may not know about them. I was among these people until I get into my profession, working with such types of organizations. Nidhi Company Do you know about ‘Nidhi Company?’ I can bet that most of the internet users do not know about this kind of organization. Let me provide to you some information about it. Nidhi Company is a kind of financial organization related to non Banking Financial services. It shares its space with other NBFC Companies. And most importantly, Nidhi Company can be found only in India. Difference with NBFC Unlike other NBFC Companies, Nidhi farms do not serve common people. As an ordinary citizen, you cannot go to a Nidhi Company and ask for loan or other types of financial services. Instead, Nidhi Company do financial activities among it’s members only. You need to be a member of a particular Nidhi Company to lend of borrows money. It works for Mutual benefit among all the members of such organization. Things that a Nidhi Company cannot do 1. Cannot open current account for it’s members 2. Indulge in Chit Funds 3. Hire Purchase Finance 4. Lend and borrow to/from Corporate

5. Involve in Security and Insurance services 6. Leasing Finance Nidhi Company Formation Rules Nidhi Company registration process is extremely simple and budget friendly. And most important thing is that it enjoys being a Public Limited Company and not Private limited farm. You don’t need RBI license to start Nidhi Company like other NBFC Companies. You need to match the below mentioned criteria before filing a Nidhi Company registration. • It should be a Public Company • Should use the suffix “Nidhi Limited” with the name of the company • Minimum ₹5 Lakh require as paid up share capital • No corporate, trust or minor can be added as Nidhi Company Member • Nidhi Company can’t issue preference shares. • The farms primary objective is to encourage saving habits among it’s members The Requirements of Nidhi Company Registration Before applying for Nidhi Company Registration, You need to make sure that the below mentioned requirements are fulfilled for the registration process:- 1. Obtain DIN (Director Identification Number) and DSC (Digital Signature Certificate). 2. Approval of Name as per RUN (Reserve Unique Name), supported by the MCA (Ministry of Corporate Affairs). 3. Articles of Association and Memorandum 4. PAN and TAN require 5. Incorporation Form SPICe+, must be completed. 6. Require ID proof and Address proof of Directors and Members. 7. Passport size photographs of Directors and Members 8. Property Documents – Ownership documents/Rent agreement, Utility Bill and NOC

Other Rules and Regulations • Nidhi Company cannot accept deposits more than 20% of it’s Net Owned Fund. • Nidhi Company must earn Profit after Tax (PAT) to open any other branches. • Director of a Nidhi Company should not hold the office more than 10 years. He or She also must be a member of the same Nidhi Company. • Minimum period of the fixed deposit should not be less than 6 months and more than 60 months. • Recurring Deposit must be a period of 12 months (minimum) and 60 months (maximum). • Nidhi Company Auditor tenure must not exceed for 5 consecutive years. • The ROI (rate of Interest) of Nidhi Loan must not exceed 5% above the rate of interest that has been offered on deposits. Compliance Part of Nidhi Company After formation of your Nidhi Company, you also need to maintain all the compliance related formalities adhere to the rules and regulations as mentioned in the Companies Act, 2013. Like other organizations, Nidhi Organizations also need to file Tax and compliance framework on yearly basis. You need to follow the below mentioned mandatory compliance rules after the inauguration. 1. You need at least 200 members within 1 year of formation. 2. Net owned fund must be ₹10 Lakh (Minimum) 3. The ratio of between the Net Owned Funds and deposits must be 1:20. 4. Unencumbered term deposits should be at the very least 10 % of the outstanding deposits. Get all the registration and tax compliance part done here in few working days without any legal problems and find online consultant for company formation and other hand know the benefits of it.

• Nidhi company does not need RBI's license for managing a loan business in India. • Restricted Paid up Capital Requirement minimum Paid up capital need of Rs. 5 Lakhs for Nidhis. • Easy process of nidhi company registration • It Help in channelizing small members savings the funds and credit from it. • Here find nidhis members loan amount lower rate of interest than the market rate. • No outsider intervention of nidhis -------------------------------------------------------------- 0 -------------------------------------------------------------------------