Efficient and expert nidhi company registration services are also extended by mellow and veteran lawyers of our internationally reputed law firm of India, well-based in Delhi. Our gamut of company registration services in entire India covers all most popular forms of companies for doing business in the various economic sectors. So far, many have availed our legal support and services for setting up Nidhi Companies in various places of India, including the South India.
This particular web-page offers precious and very useful information about the formation of nidhi company, its diverse exclusive advantages, and the complete nidhi company registration process and requirements in India.
The main and ultimate objective behind establishing a Nidhi Company is to cultivate thriftiness and a habit of making savings among all its members, in order to meet their respective financial requirements in life arising from time to time smoothly. The funds of a nidhi company is contributed solely by its all members or shareholders. The nidhi company is entitled to borrow from its members, and give loans only to its members, and thus to work for the mutual benefits and welfare of its all members. The Section-406 of the Indian Companies Act of 2013, and the Companies (Nidhi Companies) Rules of 2014, contain the provisions for incorporation, governance, and regulation of the Nidhi Companies in India. The activities of the nidhi companies do also fall under the purview of RBI Directives that govern financial activities and investments by companies including the NBFCs. However, as the nidhi companies deal with the deposits and loans related with its members only, RBI has provided certain exemptions to these companies.
The following basic points (given in Rule-6 of the Nidhi Rules of 2014) are noteworthy in connection with the activities of nidhi companies in India:
- It cannot carry out any of the following businesses --- leasing finance, chit fund, insurance, hire purchase finance, or acquisition of securities issued by any corporation.
- It is not entitled to issue preference shares, debentures, or any other debt instruments in any form.
- It cannot accept deposits from or give loans to any external person or corporation.
Advantages of Nidhi Company
The Nidhi Companies, which may also be called as the Mutual Benefit Societies/Companies, offer certain exclusive features or advantages as compared to the regular finance investment companies. The following are the main and most impressive nidhi mutual benefit company advantages available in entire India:
- These are highly localized single office institutions duly recognized by the government and governed primarily by the members, with no external involvement.
- These companies offer easy financial loans to the financially middle and lower classes of people, with minimum formalities. The secured loans are available at rather reasonable rates for the purposes like house construction or repairs. Collateral in form of jewelry or mortgage of property is accepted.
- These companies accept term deposits for timely returns.
- These companies guarantee secured investments by virtue of rigid membership structure.
- The loans and savings are facilitated by the minimum documentation and formalities.
Nidhi Company Registration Process and Requirements
A Nidhi company in India is registered as a public limited company, and therefore, essentially requires a minimum of Three Directors and Seven Shareholders. The requirement for a minimum paid-up equity share capital of Rs 5 Lacs, has been repealed by the Companies (Amendment) Act of 2015. Again, a nidhi company must have the words 'Nidhi Limited' as part of its name, in order to differentiate it from a regular finance investment company. Here, it may again to noted that the Memorandum of Association of a nidhi company must give proper space to the wording that, the primary objectives of the proposed company are to cultivate and nurture thriftiness and a lasting habit in all its members for making savings, and providing loans to and receiving deposits only from its members, for their mutual benefits.
After incorporation and within a period of one year from the commencement of its activities, a nidhi company must satisfy the following conditions:
- It must have at least Two Hundred Members (Shareholders).
- It must possess the Net Owned Funds (NOF) equalling Rs Ten Lacs or More.
- Its outstanding deposits must contain at least 10% unencumbered term deposits.
- And, the ratio of the NOF to the Deposits must not be more than 1:20.
To register a nidhi limited company anywhere in entire India, our veteran corporate lawyers offers the full range of required support and legal services, which essentially include the following services:
- Making of DINs and DSCs
- Approval and Reservation of the proposed company name (Form No. INC-1)
- Drafting of the perfect MOA and AOA of the Nidhi Company
- Filing application for Incorporation of the company (Form No. INC-7)
- Filing Forms DIR-12 and INC-22
People interested in knowing more about or setting up a nidhi company anywhere in India, may readily contact at: +91-8800-100-284 or send a concise mail to: firstname.lastname@example.org.