Nidhi Registration Process
Nidhi registration is the process of incorporating a Nidhi company, which is a type of non-banking financial institution in India. Nidhi companies aim to cultivate the habit of savings and thrift among its members while providing them with access to funds for mutual benefit. In this step-by-step guide, we will walk you through the process of Nidhi registration, enabling you to maximize your financial potential.
1. Understanding Nidhi Registration
Nidhi registration is governed by the Companies Act, 2013 and the Nidhi Rules, 2014. A Nidhi company, also known as a mutual benefit society, works on the principle of mutual benefit and is formed for the purpose of cultivating the habit of saving and receiving deposits from its members. It aims to promote the welfare of its members by lending and borrowing money among them.
2. Eligibility Criteria
Before proceeding with the Nidhi registration process, it is essential to ensure that your company meets the eligibility criteria. The key requirements for Nidhi registration include:
- The company must have a minimum of 200 members within one year of its incorporation.
- The net owned funds of the company should not be less than INR 10 lakhs.
- The company must be incorporated as a public company with the word "Nidhi Limited" as part of its name.
- The company should not carry out any business activities other than those related to Nidhi operations.
- The company should have at least 3 directors, with one-third of them being independent directors.
- The directors and shareholders of the company should be Indian citizens.
3. Documentation Required
Once you have ensured that your company meets the eligibility criteria, you need to gather the necessary documents for the Nidhi registration process. The required documents include:
- Prepare the necessary documents, including the MoA, AoA, and other required forms, as mentioned earlier.
- Submit the completed application form along with the prescribed fee to the Regional Director of the Ministry of Corporate Affairs (MCA) in your respective jurisdiction.
- Upon submission, the MCA will process your application and issue a Certificate of Incorporation, which signifies the successful registration of your Nidhi company.
4. Choosing a Name for your Nidhi Company
After gathering the required documents, you need to choose a unique name for your Nidhi company. The name should comply with the naming guidelines specified by the Ministry of Corporate Affairs (MCA). It is advisable to select a name that reflects the nature and objectives of your Nidhi company while ensuring that it is not similar to any existing company's name or trademark. The selected name must also include the words "Nidhi Limited" at its end to comply with the Nidhi Rules, 2014.
5. Application for Nidhi Registration
Once you have finalized the name for your Nidhi company, you can proceed with the application for Nidhi registration. This step involves the following process:
- Prepare the necessary documents, including the MoA, AoA, and other required forms, as mentioned earlier.
- Submit the completed application form along with the prescribed fee to the Regional Director of the Ministry of Corporate Affairs (MCA) in your respective jurisdiction.
- Upon submission, the MCA will process your application and issue a Certificate of Incorporation, which signifies the successful registration of your Nidhi company.
6. Post-registration Compliance
Once your Nidhi company is registered, you need to ensure compliance with certain post-registration requirements. These obligations include:
- Opening and maintaining a separate bank account for your Nidhi company.
- Issuing share certificates to the members of the company.
- Filing various statutory forms and returns with the Registrar of Companies (ROC) on an annual basis.
- Maintaining proper books of accounts and conducting regular audits.
- Adhering to the rules and regulations specified by the Reserve Bank of India (RBI) for Nidhi companies.
- Conducting regular meetings of the board of directors and members to discuss and decide on important matters.
Conclusion
Nidhi registration is an important step towards maximizing your financial potential. By following the step-by-step guide outlined above, you can establish and operate a Nidhi company in a compliant and efficient manner. It is crucial to adhere to the regulatory requirements and ensure regular compliance to leverage the benefits offered by a Nidhi company.
Remember, Nidhi companies aim to promote the habit of savings and thrift among their members while providing them with access to funds for mutual benefit. So, embark on this journey of financial growth and stability by initiating the Nidhi registration process and unlocking your financial potential.
Nidhi company in Pune, company in Pune, registration company in Pune Nidhi companyNidhi company is a registered company under the companies act, 2013 which has the only objective of inculcating the habit of saving amongst its members.
therefore, Nidhi company is the ideal entity to require a deposit from a lender to a selected group of individuals ADVANTAGES OF REGISTERING IN NIDHI COMPANYSeparate legal entityThe company, legal entity, and person established thereunder.
The member of the corporate has no liability to the creditors of a Nidhi company.Uninterrupted existenceNidhi companies 'perpetual succession ' exists until its legally dissolved.Better credibilityThe Nidhi company enjoys the best credibility in comparison to or business registration organizations moreover it is monitored by the central government Easy maintenanceThe board of management of the corporate often changed by filling the straightforward form with the registrar of Companies.
The board of management of a corporation controls the activities of the corporate.Concern companya juristic person can acquire its enjoyment and eliminate property in its name.
No member can claim upon the property of the corporate because Nidhi company is a concerned company.
Limited liabilityThe status of being legally responsible for a Limited amount for liabilities of the corporate.
Nidhi Company is the perfect type of company for those who want to start a business with minimum capital investment.
As per the provisions of Section 406(1) of the Companies Act, 2013, the Nidhi Company as 'A company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members just for their mutual benefit.”What is ROC Compliance?ROC stands for Registrar of Companies which is an office under the Indian Ministry of corporate affairs that deals with the administration of the businesses Act, 2013.
ROC has been appointed under section 609 of the businesses act covering the varied States and Union Territories are vested with the first duty of registering companies and LLPs floating within the respective states and therefore the Union Territories and ensuring that such companies and LLPs suit statutory requirements under the act.
The office of ROC functions as registry records, associated with the businesses registered with them, which are available for inspection by members of the general public on payment of the prescribed fee.
It is important to comply with all compliances applicable to your company to avoid penalties and fines.Our kanakkupillai team will guide you through all these compliances required to be completed since the incorporation.
You can get your ROC Compliance for Private Limited Companies done through kanakkupillai.Advantages of Nidhi Company RegistrationEasy to Form the CompanyWith 7 persons during which 3 of them are going to be appointed as Director can start a Nidhi CompanyEasy registration processJust 10-15 days needed to registerCost-Efficient RegistrationWith Rs 5,00,000 because of the minimum capital investment, Nidhi Company Registration Process is often started.
