Nidhi Company under Company Act, 2013

Nidhi Company falls under Non-Banking Financial Company (NBFC) which is formed to lend and borrow money to its members. It works on the benefits of mutual funds by incorporating the habit to save money among its members. It is asked to end the company’s name with ‘Nidhi Limited’ as an identity after the registration. It is easy to form a Nidhi Company since it isn’t mandatory to acquire the license from Reserve Bank of India (RBI).

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    ELIGIBILITY CRITERIA TO FORM A NIDHI COMPANY:

    1. Minimum 7 members and 3 directors;
    2. Minimum paid-up capital requirement is Rs. 5 lakh;
    3. Net owned funds of Rs. 10 lakh or more at the end of 1 year;
    4. Unencumbered term deposits of not less than 10% of the outstanding deposits.

    LIMITATION FOR NIDHI COMPANIES:

    • They can’t deal with chit funds,
    • They can’t deal with hire-purchase finance,
    • They can’t deal with leasing finance,
    • They can’t deal with insurance and securities business
    • They are regulated with strict rules of not lending funds or accepting money from any other person except members.

    BENEFITS OF NIDHI COMPANY :

    BENEFITS FOR MEMBERS IN NIDHI COMPANY:

    DOCUMENTS REQUIRED FOR NIDHI COMPANY REGISTRATION:

    1. Proof of the registered place of business (Ownership documents/ rent or lease agreement)
    2. No Objection Certificate (signed by the owner/ landlord)
    3. Identity proofs
    4. Address proofs of the members
    5. Photos of the members
    6. PAN card copies of the members
    7. Digital Signature (DSC)
    8. Director Identification Number (DIN) of the directors
    9. Memorandum of Association of the company (MoA)
    10. Articles of Association of the company (AoA)

    Registration process through SmartBizguru

    AFTER REGISTRATION OF NIDHI COMPANY, YOU CAN ENJOY FOLLOWING SERVICES:

    1. Director Identification Number (DIN).
    2. Permanent Account N​umber (PAN).
    3. Tax Deduction and Collection Account Number (TAN-TIN).
    4. Mandatory issue of Employees’ Provident Fund Organization (EPFO)  registration 
    5. Mandatory issue of Employees’ State Insurance Corporation (ESIC) registration 
    6. Mandatory issue of Profession Tax registration(Maharashtra) 
    7. Mandatory Opening of Bank Account for the Company and 
    8. Allotment of Goods and Services Taxpayer Identification Number (GSTIN) (if applied for).

    Registration process through SmartBizguru

    Smartbizguru also helps in posting compliance of the Company like appointing an Auditor, Preparing Finance of the Company, Filing of GST Returns and Other Returns to Government Authority, Registrar of Company (ROC) Compliances, and Consultation on Digital Market solutions. 

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