Nidhi word is basically a “Sanskrit” word which means a reservoir of funds or a treasure. In a modern world Nidhi Company is a type of Finance Company which is registered and regulated by the Govt. of India through Ministry of Corporate Affairs (MCA). These companies can take deposit or lend money to its members only.
Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi word is basically a “Sanskrit” word which means a reservoir of funds or a treasure. In a modern world Nidhi Company is a type of Finance Company which is registered and regulated by the Govt. of India through Ministry of Corporate Affairs (MCA). These companies can take deposit or lend money to its members only.
NIDHI COMPANY REGISTRATION
Nidhi Company is a company registered under the Companies Act, 2013, which has a sole objective of cultivating the habit of thrift and savings amongst its members. Nidhi word is basically a “Sanskrit” word which means a reservoir of funds or a treasure. In a modern world Nidhi Company is a type of Finance Company which is registered and regulated by the Govt. of India through Ministry of Corporate Affairs (MCA). These companies can take deposit or lend money to its members only. Therefore, the funds contributed for a Nidhi company are only from its members and used only by the shareholders of the Nidhi Company.
Nidhi Company is a class of NBFCs and RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhi Companies deal with it’s shareholder-members only, RBI has exempted Nidhi Companies from the core provisions of the Reserve Bank of India Act, 1934 and other directions applicable to Nidhi Companies. Therefore, Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people (that is within the members of the Company only).
What is the Nidhi Company ?
A Nidhi Company is a closely held public Company started initially with 7 members/ subscribers and 3 Directors which carry solely the business of providing loans to its members only and borrow therefrom, accepting the deposits from the members and promoting the habit of savings among the its members only for their mutual benefit and therefore Nidhi Company is also known as Mutual Benefit Company or Mutual Benefit Society. A Nidhi Company is required to increase the number of its members more than 200 within a first year after its incorporation and needs to file the return thereof half yearly with the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.
As per the provisions of Companies Act, 2013, every Nidhi Company ensure;
What will you receive in Company registration package ?
Advantages of Private Limited Company Registration
1. Separate Legal Entity (Management & ownership is separate):
Nidhi Company is a legal entity and a juristic person established under the Companies Act, 2013. Hence, a company has a wide range of legal capacities and the members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company's debts.
2. Perpetual succession gives longest business life:
Nidhi Company has 'perpetual succession', which means uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by death or other departure of any member and it continues to be in existence irrespective of changes in ownership.
3. Easy financing activities amongst members of the Company internally:
Nidhi Companies can provide loans to its members only and borrow from only its members, accepting the deposits from the members no outsiders or third party is involved in lending and borrowing activities hence risk of borrowing is not there. Further, under the Companies Act, 2013, a Nidhi Company is not required to comply with the rules relating to Acceptance of Deposits.
4. Easy share transfer process:
Securities can be easily transferred in a company through Demat facility since all the public companies now compulsorily required to convert all of its securities from physical form to Demat (Electronic balance) Form. The signing, filing and transfer of share transfer instruments/ forms and issuance of physical share certificates is now done away with which makes transfer process fastest and transparent.
5. Owning Property in own name:
A Company being an artificial person, can acquire, own, and alienate, property in its own name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company - as long as the company is a going concern.
What are the minimum requirements for Registering a Company in India?
* (The Directors and Shareholders can be the same or different persons.)
What is next after registration of Company ?
What is the procedure for Company registration ?
Step 1: Obtain the DSC Tokens of all the shareholders
Step 2: Apply for Name Reservation
Step 3: Prepare and filing of Form Spice Form INC-32 for incorporation
Step 4: Obtain the Certificate of Registration
Step 5: File Form INC-20A for Declaration of Commencement of Business
The entire process for registration of Company will take at least 7 to 15 working days from the receipt of all the necessary documents and filing with the ROC.
Precautions to be taken while name reservation
Should not be illegal / offensive: The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.
Passport Photo of all parties
PAN Card of all parties
Aadhaar Card of all parties
Format will be provided
Copy of Rent agreement (If rented property)
Bank Statement for Office of Company
Property Tax Receipt (If owned property)
Other documents will be intimated through e-mail.
Nidhi Company is incorporated for the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from and lending to its members only, for their mutual benefit. Nidhi Companies are also called the Mutual Benefit Society. Nidhi Company is regulated by the Ministry of Corporate Affairs (MCA). Every Nidhi Company shall, immediately after incorporation,ensure that it has- Not less than two hundred members; Net Owned Funds of ten lakh rupees or more; Unencumbered term deposits of not less than ten per cent. of the outstanding deposits as specified in rule 14; and Ratio of Net Owned Funds to deposits of not more than 1:20
Cultivate secured and lucrative investmentsto its members Gives fund benefits and locker facility Help in channelizing small savings The lower rate of credit for the members Separate Legal Existence from its management body Limited Liability on members in liquidation Flexibility of Ownership Separation of Ownership and Management Perpetual Succession Easy Transferability
You are required to fill-in the Enquiry Form as mentioned on the screen and the required list of documents and quotation will be at your Figure Tips. No Charges are required to be paid.
The following types of Business entities are in existencein India: Private Limited Company Public Limited Company One Person Company Producer Company Section 8 Company Nidhi Limited Company Non-Banking Finance Companies Mutual Fund Companies Foreign Subsidiary Companies Chit Fund Companies Limited Liability Partnership Partnership Firm Sole Proprietorship
At leastThreeDirector At least SevenSubscribers(The Director and Shareholder can be same) DIN is included in the Incorporation process itself no separate requirements DSC (Digital Signature Certificate) for all the Subscribers to MOA Minimum Amount of Share Capital of INR. 5 Lakhs Documents as enlisted in the requirement list itself
The Memorandum of Association (MOA) states the main objects of the proposed company.The Articles of Association (AOA) on the other hand, contains the bylaws, rules and regulations and procedures for conducting the routine business operations and affairs of the Company. The Memorandum of Association and the Articles of Association of the Company are constitutional and important documents, however they cannot override the provisions contained in the Companies Act, 2013 and the rules made thereunder
Authorized capital is the maximum amount of share capital with which a company is incorporated. Authorized capital can be increased by company at any time with shareholders’ approval. Paid-up share capital cannot be more than the authorised share capital.
Paid-up share capital of a company is that amount of capital which is issued to the subscribers and/or other shareholdersagainst which money towards such allotment of shares is paid by the shareholders. Paid-up capital will always be less than the authorized capital or registered capital.
It is unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 152 (3), 153 of the Companies Act, 2013. Every individual, intending to be appointed as a director of the company, will have to file an application for allotment of DIN in Form DIR-3. After filing of an application in the prescribed form the DIN approval letter will be sent through an Email to the applicant by the Ministry of Corporate Affairs
Digital Signature Certificates (DSC) are the certificate in the electronic format issued by the Certifying Authorities containing the Identity details of an individual which are carried through the DSC Tokens similar to the Pen Drives. Digital certificate can be presented electronically to prove your identity and to sign digitally certain E-forms on the Government Portals like Ministry of Corporate Affairs, DGFT, Income Tax, RBI, etc.
Yes, an existing Company can be converted into other type of Company by complying with the provisions of Companies Act, 2013 such as; Private Limited into Public Limited and vice-versa Private or Public to Section 8 Company and vice-versa OPC to Private or Public Company From Private to OPC subject minimum criteria as specified in the Companies Act, 2013 From Company to Co-Operative Societies From Partnership or LLP or Proprietary into Company However, conversion from Company to other unregistered form of business is not allowed under the Companies Act, 2013.
No Hidden charges. Every detail regarding charges istransparent as you can see in the Quotation file in your mailbox.