Online Nidhi Company Registration
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Nidhi Company Registration Online
Nidhi Company Registration Online in India has become mandetory for the business and startups who are willing to opt for finance and loan business. The registration of Nidhi company has become mandetory nowadays. It’s better to apply today to get legal compliance and protection. Nidhi company registration is 1 of the kinds of NBFC which do not expect the Reserve Bank of India (RBI) approval. Moreover, it is defined as the most affordable form of NBFC which can be created by any person in India. Nidhi Company does not need an RBI license to start the business activity, rather it can directly begin the business after registration.
So, in this article, we will be focusing on how to register a Nidhi company in India. But before that let’s have an overview of what is Nidhi company, its requirement, and features.
Nidhi company its requirements and features
Nidhi is a company created to develop the habit of saving and thrift and mutual benefit of members by lending and borrowing among members of the company. A Nidhi company is a non-banking financial company(NBFC) which is controlled by the Reserve bank of India from time to time. Still, RBI has excluded the Nidhi companies from the core requirements of the RBI act.
The minimum number of members needed as the director to make a Nidhi company in India is three.”Nidhi Limited” words are stated in the name of the company. Management of a Nidhi company doesn’t have outside involvement so it becomes simpler to manage a Nidhi Company.
Also, investments in a Nidhi Company are determined. Reserve Bank of India is empowered to circulate directions to Nidhi Companies in matters describing to their deposit acceptance activities.
Nidhi Company registration is simple as correlated to other types of finance companies like NBFC which require RBI license to start. Moreover, the superior reason behind incorporating a Nidhi company is to encourage and stimulate its members to store, so that they can easily and with ease satisfy their financial wants occurring from time to time. Hence, this company is based on the theory of Mutual Benefits.
Minimum requirements for Registering Nidhi Company online
Nidhi Company needs 7 shareholders. Out of these 7 people, 3 people require to be appointed as a director. These shareholders should not be your relatives. Members do not need education qualification.
Every company needs to add suffix “Nidhi Limited” as part of its name in the end.
Earlier, the least share capital must be Rs.5 Lakhs. But now, you can record to Nidhi Company with any amount of your choice. As per Rule 5 of Nidhi Rules, 2014, we advise you to begin with Rs.10 lakh capital invested in it.
Nidhi companies must have a minimum of 200 members within 1 year of incorporation as per the law rule. If the company does not have 200 members within one year, the company will be considered by default. If your company is not able to have 200 members, you must apply for closure of the financial year in the form of NDH-2.
Features of Nidhi Company Registration Online
- Separate Legal Entity
A Nidhi Company is seen as a separate legal entity from its owners. Also, can own property and incur debts
- Easy Management
Registrar of companies checks and examines the change of board members and thus can be done easily.
- Ongoing concern
As long as the company is in existence, no member can claim a right on the property owned by the company and ask for all the rights and complete ownership in the company.
- Uninterrupted Existence
Changes in membership or death of members do not affect the existence of the company.
- Better Credibility
Central government registers and monitors Nidhi companies.
- Lower rate of Interest
The rate of interest in borrowing for members is less as compared to the market rate.
- Limited Liability
Any member is liable to only the amount he has invested in the company. Easy Ownership Transfer Tax Benefit.
How to do Nidhi Company Registration Online?
STEP 1: Compile all documents
For Nidhi Company Registration Online the first steps is to collect all the needed documents as directed above and sent us all in the scan copy to us. No hard copy of documents is required that is no need for paperwork total online processing. Documents that are usually required are :
PAN Card of its Directors and Members
Address Proof – Anyone (Electricity bill, mobile bill, telephone bill, bank statement) from Directors and Members
Registered office -Ownership proof (If the property is owned)
Registered office-Rent Agreement (If the property is on rent)
The electricity bill for Registered office
No Objection Certificate (NOC)
Phone number and mail ID
STEP 2: Apply for Name approval
Once you have applied for name approval, the following step is to ask for a company name. The company name requires to be as per Rule 8 of the Company incorporation rules. DIN is an identification number needed by every director. It is like a Pan number which is necessary for all income tax assessee. Here DIN is mandatory for all the directors in the company. Company Name is the most essential task because it is the name that becomes the identity of the company. So, make sure you use the 1st words of the company name as your brand name like CHENNAI SRI EKAMBARESWARAR SASWATHA NIDHI LTD, etc.
Here are 4 key factors which drive the Company name approval:
The Company name must be different and should not be the same as an existing company.
The company name must not match with any registered trademark of the same class.
The company name must not include any restricted words like Gandhi, Ashok chakra, etc.
2 names in order of priority should be submitted to the government for approval as per the MCA guidelines and RUN form instruction which is given for company registration.
Same as any other company, you got to pick a name for your company. The candidate must look for a suitable one in the MCA portal.
Memorandum of Association (MOA) & Articles of Association (AOA)
Affidavits for company registration
All KYC documents of directors
STEP 5: File for Incorporation
Once all the documents are provided, the application for Company registration is filed. The company incorporation is filed by a new electronic form SPICE+. This form is the single combined form for all the company registration.
Once, the form is finished, the regular follow-up is required for the incorporation purposes.
STEP 6: Follow up & approval
Once you have filed for the company registration, another step is to follow up with the government. If all your documents are precise then the government will give the registration certificate and your company registration is done. Once the Nidhi Company registration is done, the incorporation certificate is made online along with PAN and TAN. Under new rules, PAN and TAN are not to be applied individually. They are allotted at the same time as registration. But, the hard copy is received within 15 to 20 days.
For more details regarding Nidhi Company get connected to us today. We provide all online CA/ CS services in India. You can get your Nidhi Company Registration Online today with us at affordable prices with MCA follow-up guidelines.