Nidhi Company Registration

In today's world, there are many talented and ambitious people with that want to start their very own businesses.

  • 3 DSC & up to 3 DINs
  • Nidhi Company Name Reservation
  • MoA & AoA
  • Nidhi company registration certificate
  • Nidhi Company PAN & TAN

Note – GST Extra, MCA fees inclusive based on NCT Delhi

  • -Easy Payment Options Available
  • -No Spam. No Sharing. 100% Confidentiality

What is Nidhi Company Registration?

In today’s world, there are many talented and ambitious people with that want to start their very own businesses. However, most of the times these innovative minds do not have enough money to spare on a gamble like a brand new business. I know, if the business becomes a success, there is nothing better than your own company but there is always a chance that it may not work out the way you think it would.

Due to this uncertainty, many people either do not pursue their ideas or take a loan. Even then, finding a trustworthy company or bank to lend you money is again a hard decision. Many companies are out there that would have so many hidden charges that they later put on the price you have to return to them and others add up too much interest from the start. These issues are even harder for the people who do not have enough money to even think about a loan. They cannot bare the cruelty of the loan world with at all.

Now, imagine you are that company that lends money to people in need or helping to facilitate lending money between various company members. How amazing would that be? If you are planning to open a business of your own and you want to help people just like you, creating a Nidhi Company is the best option for you. Plus, it would make you feel good and the business would flourish as well because it would beneficial for your client as well as for you. Allow me to explain further.

Purpose of Nidhi Company

Under the control of the central government, Nidhi Company is a non-banking finance company. It falls under the Act of Companies of 2013, mainly under the section 406. This way your company would be accepted as a proper company by your country and the world.

The sole purpose of a Nidhi Company is to ensure smooth processes of money lending between business people, mainly the top core personnel. To get into more detail, a Nidhi company basically receives money from a party of members as deposits or it lends them the money they require for any justifiable cause. The next main thing to talk about would be what sort of contracts or funds can the company provide? Well, there are bunch of them that a Nidhi Company can provide to its clients.

What Funds Can A Nidhi Company Provide?

While being a non-banking finance company, Nidhi Company can lend money to their clients in the shape of different funds, as per the client’s requirement. Some of the examples are

  • Permanent funds.
  • Mutual benefit funds.
  • Mutual benefit company funds.

All these funds are recognized by the government, which makes them true and legit. Apart from these 3 types of funds, a Nidhi Company can provide many types of funds. You can get the information for them after your company has been established. The most important thing you need to know about any of the funds is that any type of borrowing or lending that would be done by your Nidhi Company, it should be according to the rules of Company Rules of 2014, especially Chapter XXIV.
Now that we have discussed the types of funds that a Nidhi Company can provide, let us tell you about the requirements needed on your behalf to open a Nidhi Company.

How Does It Work Nidhi Company?

Like all the companies, Nidhi Company also needs to meet some milestones or requirements to maintain its existence in the world of companies. Plus, as it will be governed by the central government, they would want to make sure there is a certain standard that you company meets in order for it to work properly and help as many businesses as it can. The following are the goals or requirements that are basics for a Nidhi Company.

  • Members
  • For a Nidhi Company to keep functioning, it is required that the company has 200 members within a year. A company working for such a big thing needs a good amount of people. This amount of people is adequate for the company to work smoothly. If the company fails to acquire 200 members in the give time, it supposed to file an application asking for the extension of time in order to get the needed number of members. There are supposed to be three directors in the company and there are seven stockholders on inception needed for the company, these would count in the total 200 members of the company.

  • Regulated by Ministry of Corporate Affairs and Reserve Bank of India
  • Ministry of Corporate Affairs or MCA keeps an eye on the dealings happening in a Nidhi Company. They keep a check on all the financial process and registrations that are aided or conducted by a Nidhi Company. Companies like these can take deposits or give loans that have the time limit of above six months but less than 5 years. The loans and deposits are kept in check by the Reserve Bank of India or RBI. The bank also has the right to investigate about the financial deals. So, basically you can say that everything related to any financial processes is looked after by MCA or RBI.

  • Equity Share
  • The equity share required for a Nidhi Company is of the amount of Rs. 5 lac and that is on inception. The whole amount of 5 lac is expected to be paid fully. In addition to this, the deposits that are collected from the members, 10 percent of the total amount is expected to be deposited in some nationalized bank in the form a fixed deposit.

    These were the requirements that are needed for a Nidhi Company to work at its finest or even to be created at all. These are important to know as you could suffer a huge loss if you do not pass all these terms. Now that we have talked about what is required, let us talk about some of the benefits you will get from your Nidhi Company.

Procedure of Nidhi Company Registration

It usually takes around 8 days for minimum of 3 directors to file for a DSC, which is strictly required for the registration of a Nidhi Company. For this process, you only need to provide some scanned documents and the rest is done by the company's representative. After the DSC filing, it takes about a week moreto get your company name and for the submission of the other corporate documents. So, in total it will take around 14 days.

Documents Needed for the Registration of a Nidhi Company

Just like any other official process in the world, creating a Nidhi Company also requires certain documents that you must provide to endure that your company comes into being and is recognizable by the world. There are a few things that you will need to register your Nidhi Company. The following list of documents is required by all the core members or directors of the Nidhi Company that is to be registered.

  • A copy of PAN card, it should be self-attested so you do not worry of it being misused.
  • A copy of your Voter’s card or Driver’s License. If you do not have these two then you can submit a copy of your Passport or Aadhaar Card. They should also be self-attested.
  • A copy of your Bank Statement. If for some reason you cannot provide that, you can provide telephone, mobile or electricity bill. They also should be self-attested for safety protocols.
  • Specimen Signature Certificate.
  • A passport-size photograph.

These are a bunch of easy things you need to provide to create your Nidhi Company. Now let's discuss the basic structure of how a Nidhi Company is supposed to work for it to maintain its position in the market.

Choose us to Open Your Nidhi Company

There are many reasons you should pick these guys to help you out with your company opening.

  • You won't have to go through much trouble. You will just have to give necessary information about your company and within 35 days, you will have your corporate certificate as go for the Nidhi Company.
  • They have a satisfaction rate number 0f 9.1 as customer satisfaction. Your interaction with the government is made quite easier due to these workers as most of the paper work is handled by them.
  • The help is only a phone call away. If you ever have any questions about the procedure or just need help with your Nidhi Company, you can just give a call to one of their executive team members and they will help you out. Although it won't be needed as they will explain everything to you along the way and before too.

Advantages of Nidhi Company Registration

A company like this has three major advantages for the company itself and for the members too.

  • Cheaper Borrowing
  • If you compare the borrowing process of a Nidhi Company and a bank, you will realize that a Nidhi Company is a lot cheaper in that regard. For example, for the members, it is possible to borrow money at the most minimum rate. This could be a huge advantage for the members as at times, people need more than one loan consecutively. If the system of the company was like most banks, the members would get severely indebted. However, with Nidhi Company that is not the case. The members could choose the minimum rate and ease their already troubled times.

  • Appreciates Savings
  • A Nidhi company promotes and encourages saving money for all its members. It also promotes the concept of spending money thoughtfully. As it works on mutual benefit, members can borrow from or lend money to each other, which again promotes savings.

  • No complications
  • As the people you would be borrowing money from or the lending money to would be people you know and trust, so there would be no complications or doubts of messing up. Plus, the procedure of the financial process is also fixed so there would be no confusions there as well.

To avoid any further confusion about a Nidhi Company, here are a few frequently asked questions by people.

Frequently Asked Question on Nidhi Company Registration

A total of 10 individuals are needed to start a Nidhi Company. You need 3 directors and 7 stockholders. Your company would have to be registered as a limited company according to the Companies Act of 2013. It could take around a month or so to register the company.

Yes, you can open three branches in one district. If you wish to open branches of your Nidhi Company in other districts, you would have to file an application 30 days before you wish the branch to open. The application is to be sent to Registrar of Companies.

The conditions by the Act say that you need 200 members within a year. If for some reason you have failed to do so, you can write an application asking for an extension so you can fulfill the 200 number of members requirement.

No, to keep the system safe, only members can deposit, borrow or lend money.

Anyone can become a member of Nidhi Company as long as they are clear in the light of Companies Act of 2013. The only condition is that they should not be a company or a corporation but an individual.

The company can accept a deposit less than 20 times of its owned assets per according to the last audited statement.

Why Corpbiz

20 Working Days

Just tell us a little bit about your business and you'll have the incorporation certificate in 20 working days. It's that simple. In addition to yours, we'll be handling around 400 requests this month.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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