Nidhi Company Registration
Nidhi means a company which has been setup with the object of developing the habit of thrift among the members.
Advantages of Nidhi Company
- Very easy formation
- Limited RBI regulatory compliance
- Less risky proposition
- Limited capital requirement
- Simple procedure
- Uninterrupted questions
What is Nidhi Company ? An Overview
Nidhi company comes under the type of company in the Indian non-banking finance sector. Nidhi company’s core business is of borrowing and lending money among their members, and hence often also known as Permanent Fund, or Benefit Funds and Mutual Benefit Company. They are regulated by Ministry of Corporate Affairs. Nidhi means a company which has been setup with the object of developing the habit of thrift among the members. The basic concept followed by nidhi company is “Principle of Mutuality” . These companies are mostly functional in South India. The RBI moniters all the financial dealings but approval from RBI is not necessary.
Benefits of Nidhi Company
-
Encourages SavingsIt encourages all its members to save money after all, is a mutual benefit society wherein members can lend or borrow money
- Fewer Complications
Borrowing and lending to known persons is much less complicated than dealing with banks or in an informal setting
- Cheaper To Borrow
one can borrow money at a minimum rate if he or she is the existing member and can be useful in times of need
Checklist For A Nidhi Company
-
Minimum seven members are mandatory to form a Nidhi company. Out of which 3 should be designated as the directors
-
The company should have a minimum equity share capital of Rs.5 lakhs for the registration
-
10% of the outstanding deposits should comprise of un-encumbered term deposits • The prescribed NOF to deposits ratio should not be less than 1:20
Documents Required For Nidhi Company Registration
Documents need to Be Submitted By All Directors
Forms to be filed
- INC9
- DIR 2
Prohibited things
A Nidhi company cannot deal in
- Chit fund business
- Hire purchase finance
- Acquisition of stocks,shares or bonds issued by any local authority marketable securities
Reviews
Why Choose Us?
Happy Customers
Served more than 5000 customers with our service and have received positive feedback from them
Projects Completed
More than 1000 project has been completed successfully with the acceptance criteria being met . We deliver what we promise
Affordable
you will get professional service at an affordable price
Fast Service
All your service will be provided in a short interval of time with high accuracy
Quick Support
Queries will get sorted within 24 hours
